The center releases drafts of the GST legislation; Karnataka makes a major investment in incubators; ruling parties remain strong in by-elections in Madhya Pradesh, Tamil Nadu, and West Bengal; Maharashtra set to get three mega solar power plants; and more.

Center-State relations

Draft laws for implementing the Goods and Services Tax (GST) stipulate that states will receive provisional compensation from the center for revenue lost due to implementation of the GST on a quarterly basis but that the final annual number will be decided only after an audit carried out by the office of the Comptroller and Auditor General. The center will raise funds to compensate states through an additional tax on luxury goods and “sin” items like tobacco. Source: Economic Times In Detail: Bill Text

Wind turbine maker Suzlon Group has won a 50 megawatt (MW) wind power project in Anantapur, Andhra Pradesh. Source: Financial Express

Bihar’s cabinet approved nine road construction projects worth $200 million. The projects include $147 million for construction of an approach road on the Sone River near Aurangabad. Source: Economic Times

Nothing critical to report this week.

Central environment minister Anil Dave announced the lifting of the moratorium on expansion of industrial units and opening of new plants in the industrial clusters of Ankleshwar, Vapi, and Vatva in Gujarat. The previous central government had imposed the ban in 2010 due to heavy pollution in the clusters. Source: Business Standard

Chief Minister Manohar Lal Khattar inaugurated a $8.5 million, 10 MW solar power plant built by Haryana Power Generation Corporation Limited. The plant, which is spread over 48 acres, will generate 18 million kilowatt hours of electricity per year. Source: Business Standard

Haryana announced a 2 percent increase in employee Dearness Allowance, with effect from July 1, 2016. The increase will raise salary expenditures by $42 million per year. Source: The Tribune

Haryana chief minister Manohar Lal Khattar approved a proposal to construct a metro line to connect the Gurgaon Railway Station with the Delhi Metro system. Source: Indian Express

Haryana signed a Memorandum of Understanding (MoU) with the National Small Industries Corporation to set up an IT skills development center at Faridabad. The facility will be the eighth such center in the country and will train up to 2,000 students a year. Source: Daily Pioneer

Karnataka’s cabinet approved a $4.5 million investment in a start-up incubation hub to be built on a 35,000 square foot plot in the HSR Layout neighborhood. Chief Minister Siddaramaiah also approved the establishment of five more incubators across the state at a cost of $6.5 million. Source: Economic Times

The Bharatiya Janata Party (BJP) retained Shahdol Lok Sabha and Nepanagar Assembly seats in the by-elections in Madhya Pradesh. Source: Economic Times

The central government sanctioned three large solar power projects in Maharashtra, each with capacity of 500 MW. The plants will be built in Vidarbha, Marathwada, and Khandesh. Source: Times of India

Nothing critical to report this week.

Lok Sabha by-election results announced on November 22 showed a further increase in support for the ruling All India Anna Dravida Munnetra Kazhagam (AIADMK). The AIADMK increased its vote share by 2.5 percent, while the Bharatiya Janata Party (BJP), which has traditionally lacked a foothold in the state, came in third in the total vote count across all three elections, beating a local party. Source: India Today

The Telangana government has approved the creation of a special purpose vehicle (SPV) to build and operate the planned Hyderabad Pharma City project. The facility, which will occupy 12,500 acres, is expected to offer one-stop shopping for the pharmaceutical industry. The government hopes to use the SPV to tap private investments for the development of basic infrastructure. Source: Business Standard

The state-run Uttar Pradesh Electronics Corporation signed an MoU with Software Technology Parks of India (STPI) to develop an IT Park in Gorakhpur. Source: Economic Times

Uttar Pradesh chief minister Akhilesh Yadav inaugurated India’s longest expressway, the six-lane, 188-mile Agra-Lucknow Expressway. Source: Business Today

The ruling All-India Trinamool Congress (AITC) retained two Lok Sabha seats and one assembly seat following the November 19 by-election. Both AITC Lok Sabha candidates won by nearly half a million votes. Source: Hindu Business Line

The West Bengal Legislative Assembly passed a resolution changing the name of the State to ‘Bengal’ in English and ‘Bangla’ in Bengali. Parliament’s consent will be necessary to effect the name change. Source: The Hindu