States Update: February 24, 2021
By Neelima Jain
Big News: Bihar, Uttar Pradesh, and Nagaland announce state budgets; Kerala launches a free internet plan; Gujarat, Uttar Pradesh, and Uttarakhand implement reforms prescribed by the Ministry of Finance; Maharashtra, Tamil Nadu, and Uttar Pradesh emerge as top states with the highest employable talent; and more.
Industrial Policy & Business Regulations
Bihar announces its budget for the financial year (FY) 2021-22. The budget proposals include setting up a separate department for skill development and entrepreneurship; installing solar lights in all villages within the state; and providing special incentives to women entrepreneurs. Source: Times of India; In detail: Budget (In Hindi)
Uttar Pradesh announces its budget for FY 2021-22. The budget allocates an outlay of $1.3 billion for housing development, $162 million for metro rail projects, and $276 million for smart city project. Source: Financial Express; In detail: Budget Speech
The Nagaland assembly passes its state budget for the financial year 2021-22. The budget estimates the state's total receipt and expenditure at $3.103 billion and $3.15 billion respectively. Source: Business Insider; In detail: Budget Speech
The federal government notifies an industrial development scheme for Jammu and Kashmir. The scheme offers multiple incentives, including capital investment incentive and capital interest subvention incentive for new industries established in the union territory. Source: Tribune India; In detail: Notification
Punjab cabinet approves an amendment to the state's industrial policy to allow investors to avail goods and services tax incentives until October 2022. Source: Economic Times
Land Acquisition & Labor Reforms
Infrastructure & Governance
Gujarat, Uttar Pradesh, and Uttarakhand undertake reforms in "ease of doing business" stipulated by the Ministry of Finance. This implementation makes the states eligible for additional borrowing limits. Source: Hindustan Times; In detail: Press Release
Karnataka and Goa implement power sector reforms stipulated by the Ministry of Finance. This implementation makes the states eligible for additional borrowing limits. Source: Economic Times; In detail: Press Release
Maharashtra, Tamil Nadu and Uttar Pradesh remain the top three states with the highest employable talent, according to the India Skills Report 2021. The report is prepared by Wheebox in partnership with multiple agencies, including United Nations Development Programme. Source: Times of India; In detail: India Skills Report
Kerala launches its Kerala Fiber Optic Network initiative. The initiative aims to provide free internet access to two million households in the state. Source: Inc42
Uttarakhand passes an ordinance to grant women co-ownership rights in their husband's ancestral property. Source: Economic Times
Madhya Pradesh sets a pre-fixed tariff of $0.042 per kilowatt hour (kWh) under "component A" of the central government's PM- KUSUM program. Source: Mercom; In detail: Order
West Bengal reduces the tax on petrol and diesel by $0.013 per liter, effective from February 22, 2021. Source: India Today; In detail: Finance Minister's Tweet
Meghalaya reduces the tax on petrol and diesel by $0.06 per liter. Source: Business World; In detail: Chief Minister's Tweet
Business Negative Reforms
Assam reduces electricity tariffs, effective from April 1, 2021. Tariff of users, consuming up to 25 kilowatt, and remaining categories have been reduced by $0.0027 per kWh and $0.0020 per kWh respectively. Source: Times of India; In detail: Tariff Order
Any Other News
Center – State Relations
The union cabinet approves $1.67 billion production linked incentives scheme for the telecom and networking products. The scheme outlay is for a period of five years. Source: NDTV; In detail: Press Release
The Ministry of Science and Technology releases liberalized guidelines for acquiring and producing geospatial data and services. Indian firms will no longer require a license for collecting, generating, storing, and sharing unclassified geospatial data. Source: Financial Express; In detail: Press Release
Neelima Jain
Senior Fellow and Deputy Director of the Wadhwani Chair in U.S.- India Policy Studies
Neelima Jain is a Senior Fellow and Deputy Director for the Wadhwani Chair in U.S.-India Policy Studies at CSIS. In her role she works closely with the Indian states to bolster U.S – India relations on energy, water and healthcare reforms