Analysis
States Update: December 13, 2017
Posted on
Big News
State power ministers meet in Delhi; Madhya Pradesh regulator restores must-run status for renewables; Goa and Uttar Pradesh issue new solar policies; and more.
Center-State relations
Minister of State for Power R K Singh presided over a conference of state power ministers in Delhi. The group discussed universal metering, 100 percent electrification, and reducing cross-subsidization (the practice of charging some consumers high rates in order to pay for subsidized power for other users). Minister Singh said the central government intends to amend the Electricity Act to prohibit state distribution utilities from factoring in transmission losses of more than 15 percent when calculating new tariffs. Source: Economic Times
Gujarat, Madhya Pradesh, and Haryana were the fastest growing states in the last four fiscal years, while Punjab, Uttar Pradesh, and Kerala made up the bottom three according to a report by ratings agency Crisil. States exhibit wide divergence in performance as they are exposed to increasing competition, the report said. Source: States of growth - CRISIL Report
Andhra Pradesh
The Andhra Pradesh government issued an order allowing the state's generation utility to begin the 960 megawatt (MW) Polavaram hydroelectric power project. The government stipulated several changes to the original proposal to bring down the projected cost of electricity produced by the project. Source: The Hindu In Detail: Andhra Pradesh Government Orders (GO MS No. 34, 12/6/2017)
Bihar
Nothing critical to report this week
New Delhi
Nothing critical to report this week
Gujarat
Voter turnout in the first phase of Gujarat elections, held on December 9, was 66.75 percent, the Election Commission said. The figure is lower than the 71.32 percent voter turnout in the 2012 elections. A second and final round of polling will take place December 14. Source: Live Mint
Haryana
Nothing critical to report this week
Karnataka
The Asian Development Bank has approved a loan of $346 million for a highway upgrading project in Karnataka. The project will involve widening 260 miles of state highways and will include a road safety survey to identify and improve accident-prone areas. Source: Economic Times In Detail: Press Release
The Karnataka government unveiled its new public health policy. The policy recognizes that Karnataka's health outcomes lag those of its neighbors and that is suffers from regional disparities and gaps in secondary and tertiary coverage. It commits the state to, among other actions, increasing access to care, particularly primary health care; implementing electronic medical records; and establishing 24x7 generic drug dispensaries on site at second- and third-tier healthcare facilities. In detail: Karnataka Integrated Public Health Policy 2017
The Karnataka Renewable Energy Development Limited has issued a request for proposals for 860 MW of solar modules, split between 43 sites with a total of 20 MW in each. The minimum project capacity is 3 MW and the maximum is 20 MW. A total of 10 sites are reserved for module manufacturers based in the state. Source: PV-Tech
Madhya Pradesh
The state energy regulator confirmed must-run status for power generated from renewable energy sources. The Madhya Pradesh Electricity Regulatory Commission (MPERC) ordered that generation from renewable sources be subject to scheduling, not merit order dispatch (uptake according to cheapest source). MPERC had earlier released a draft order requiring merit order dispatch for all sources of energy. Source: Business Standard
Maharashtra
The Maharashtra government approved an industrial policy for women entrepreneurs that aims to encourage female entrepreneurship in the state. The government pledged to set aside $100 million in next year's budget to offer subsidies to female-fronted start-ups. Source: Times of India
The winter session of both Houses of the Maharashtra legislature will begin December 11 and will last for two weeks. Source: Free Press Journal
Rajasthan
Close to the two-year anniversary of signing the Ujwal Discom Assurance Yojana (UDAY) agreement with the central government, Rajasthan's three state-owned electricity distribution companies (discoms) are still far from achieving their targets. The discoms reduced aggregate technical and commercial (AT&C) losses from 27.5 percent to 26.2 percent, still well above the Fiscal Year 2018 target of 18.78 percent. Source: Financial Express
Tamil Nadu
Nothing critical to report this week
Telangana
The center has proposed supplying four districts of Telangana — Khammam, Medak, Ranga Reddy, and Nalgonda — with piped natural gas (PNG) at an estimated cost of $93 million over five years. The offer is dependent on the state government providing land at concessional rates for creating gas distribution infrastructure, such as compressed natural gas stations. Creation of a PNG infrastructure in urban areas will allow 175,000 gas cylinders to be diverted to rural areas every year. Source: Deccan Chronicle
Uttar Pradesh
The Uttar Pradesh cabinet approved the new Solar Energy Policy 2017. The new policy sets a goal of building 10.6 gigawatts of grid connected solar power plants in the state. The state government will also provide a grid connected rooftop solar power subsidy of $232 to $464 per consumer. Source: Hindustan Times In detail: Uttar Pradesh Solar Power Policy 2017
West Bengal
A dispute between the center, West Bengal, and Jharkhand has caused power utility Damodar Valley Corp. (DVC) to abandon its plan to sell a 1,200 MW thermal power plant to a proposed joint venture with NLC India Ltd, putting at risk $3.2 billion of long-term loans that it is struggling to repay. DVC, which is jointly owned by the center, West Bengal, and Jharkhand, had reached a tentative agreement to transfer a 74 percent stake to NLC. The center and Jharkhand have agreed to the deal, but West Bengal did not. Source: Live Mint
Best of the Rest
Goa
The cabinet approved Goa's new Solar Power Policy, under which the state expects to generate 150 MW of solar power by 2021. The state will develop small to medium-scale solar parks on private land and will seek to ensure that all solar power bought by the state's discoms is generated within the state. The policy will come into effect by the end of the current financial year. Source: Economic Times In detail: Solar Energy Policy 2017
Meghalaya
The center approved $11.6 million for a liquefied petroleum gas bottling plant in Meghalaya. The plant will help increase penetration of the clean fuel, especially in the rural areas of the state. Source: North East Today