States Weekly: July 2, 2025

Commentary by Sakshi Kataria and Shashwat Kumar

Published July 2, 2025

Big News: Karnataka extends coverage of 'Karnataka Arogya Suraksha Scheme', Maharashtra announces phased reductions in Power Tariff, Andhra Pradesh amends Andhra Pradesh Building rules, 2017, Gujarat establishes Unified Metropolitan Transport Authority (UMTA),Uttar Pradesh constitutes a 15-member Economic Advisory Group (EAG); and more

Health 

Karnataka bans 15 pharmaceutical and cosmetic products. The order to ban the products, including a commonly used paracetamol brand, was issued by the Karnataka State Department of Food Safety and Drug Control after tests found them to be unsafe.

Source: India Today

In detail: Karnataka Banned Drugs Notification

Karnataka extends coverage of 'Karnataka Arogya Suraksha Scheme'. The new scheme 'Karnataka Arogya Suraksha Scheme - Non-permanent Employees' extends insurance coverage to include outsourced and contract employees, workers and their dependents. The cashless health insurance will be provided through Suvarna Arogya Suraksha Trust.

Source: The Hindu

Tamil Nadu extends the New Health Insurance Scheme, 2021. The insurance scheme for employees of Tamil Nadu government was set to expire on June 30, 2025. The government order issued by the Finance department extended the scheme for another year starting July 1, 2025.

Source: The Hindu

In detail: New Health Insurance Scheme, 2021

Kerala launches the Universal Palliative Care project. This intervention is one of the ten key focus areas of Navakeralam Action Plan's Ardham Mission 2. The state government also established the Kerala Palliative Care Grid - a tech-enabled initiative that aims to unify healthcare efforts across the state and respond to the rising needs of an ageing population.

Source: New Indian Express

In detail: Universal Palliative Care project-Press release

Climate Change and Energy

Haryana approves procurement of NPHC's Firm and Dispatchable Renewable Energy (FDRE) Power. The petition filed by the Haryana Power Purchase Centre (HPPC) for procurement of 400 MW FDRE power from inter-state transmission system (ISTS) connected RE and energy storage projects was approved by the Haryana Electricity Regulatory Commission (HERC) at the tariff of $0.051 per unit (₹4.44 per unit) for a period of 25 years.

Source: Solar Quarter

In detail: HERC order

Karnataka mandates Smart meter installation. The guidelines issued by the Karnataka Electricity Regulatory Commission (KERC) makes smart meters compulsory for all new and temporary electricity connections in several interior districts of Karnataka starting July 1, 2025.

Source: Daijiworld

In detail: KERC guidelines

Maharashtra announces phased reductions in Power Tariff. The tariff order of Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the control period FY 26 to FY 30 approved by the Maharashtra Electricity Regulatory Commission (MERC) provides relief to the consumers in 0-100 units consumption category. The initial relief will be of 9 pe cent in FY 26 going up to 26 per cent by FY 30. The tariff for consumers in the consumption category above 100 units will increase by 0.5 to 3 per cent in FY 26 and FY 27, and then gradually decrease in FY 28, FY 29 and FY 30.

Source: Economic Times; Money Control

In detail: Tariff order

Finance

Nothing critical to report this week

Industrial Policy and Business Regulations 

Delhi extends its existing Excise Policy. The order issued by the Excise Department of the Delhi government approved the continuation of the excise duty-based regime which is in effect from the licensing year 2022-23 for the excise year 2025-26.

Source: Economic Times

In detail: Notification

Delhi approves the formation of the Delhi Trader Welfare Board. The board will be registered under the Societies Registration Act of 1860, will comprise of fifteen members and function under the chairmanship of the industry minister. The board will facilitate a sustained dialogue between the government and the trading community.

Source: The Statesman

Karnataka revises the proposed changes in Karnataka Excise Policy. The state government has scaled back its proposed 100 per cent increase in liquor excise licence renewal fees to 50 per cent. In addition, the licences will now be valid for five years instead of one.

Source: Money Control

In detail: Karnataka Excise Policy- License fees

Himachal Pradesh notifies the Homestay Rules-2025. The notification issued by the Tourism and Civil Aviation Department aims to streamline the homestay registration process, promote local culture, and ensure better services and safety standards for tourists. The new rule abolishes the need for police or panchayat No Objection Certificates (NOCs) and introduces a structured registration system with revised fees and new compliance norms.

Source: The News Himachal

In detail: Himachal Pradesh Home Stay Rules, 2025

Land Acquisition and Labor Regulations 

Andhra Pradesh amends Andhra Pradesh Building rules, 2017. The state government approved a series of relaxations to the existing building regulations to encourage small-scale construction and easing the approval process for builders.

Source: Swarajya

In detail: Andhra Pradesh Building Rules, 2017 - Amendments

Haryana approves new Land Purchase Policy for Development Projects, 2025. The new policy by the state government aims to provide a platform to landowners to prevent distress sale in case of dire necessity due to non-availability of suitable purchasers. Under the new policy a provision has been made that the landowner can sell the share in part or full.

Source: Outlook

In detail: Haryana Land Purchase Policy for Development Projects, 2025

Punjab amends the Conversion Policy 2021. The amendments enable the conversion of industrial plots into hospitals, hotels, industrial parks, and other permitted uses. As per the revised policy, a conversion charge of 12.5% of the industrial reserve price will be levied.

Source: Hindustan Times

Infrastructure and Governance

Bihar launches Bihar State Bridge Management and Maintenance Policy, 2025. The policy aims to digitally track, inspect, and maintain over 3,900 bridges across the state - using advanced monitoring systems for timely interventions and safety checks.

Source: KKN

In detail: Cabinet decisions

Gujarat amends Gujarat Stamp Act, 1958. The decision released by the revenue department states that in cases where societies, associations, and non-trading corporations carry out property transfers through allotment letters or share certificates, up to 80 per cent of the payable duty will be waived. Thus, only about 20 per cent of the original duty amount will be collected.

Source: Free Press Journal

In detail: Revenue Department Press Release - Gujarat

Gujarat establishes Unified Metropolitan Transport Authority (UMTA). The state government will establish UMTA in Ahmedabad and Surat and its responsibilities include advising the government on urban transport matters, formulating and administering transport policies, strategies, standards and guidelines, and overseeing the integration of multi-modal transport systems in city master plans.

Source: Swarajya

Haryana announces implementation of Unified Pension Scheme (UPS). The state government will implement UPS from August 1, 2025. Notable features of the pension scheme include providing 50% of the average basic pay drawn by the employee during the 12 months prior to retirement after completing 25 years of service. If the employee retires after completing 10 years or more of service, then the minimum guaranteed payout is INR 10,000 per month.

Source: Times of India

In detail: Haryana-Unified Pension Scheme (UPS)

Uttar Pradesh constitutes a 15-member Economic Advisory Group (EAG). The newly constituted body's mandate includes analysing global and domestic economic trends and assessing their implications for the state. EAG will develop policy frameworks tailored to the state's needs, recommend strategies to attract investment, boost productivity, and ensure sustainable growth. It will also monitor and assess the impact of flagship state government programs, recommending course corrections where necessary.

Source: Free Press Journal

Himachal Pradesh approves setting up of Panchayat Emergency Response Centre. These centres will be set up in each of the 3,645 panchayats state to ensure effective response in the event of natural disasters to save human lives and properties.

Source: Business Standard

Ladakh notifies Ladakh Reservation (Amendment) Rules, 2025. As per the amended Rule 4, Scheduled Tribes (STs), who make up the majority in Ladakh, will now receive 80 per cent reservation in direct recruitment, Scheduled Castes (SCs) will receive 1 per cent, residents of Areas Adjoining the Line of Control (ALC) will receive 4 per cent, and Economically Weaker Sections (EWS) will receive 10 per cent. Horizontal reservations have been fixed at 6 per cent for ex-servicemen and 4 per cent for persons with benchmark disabilities

Source: Kashmir Life

In detail: Union territory of Ladakh Reservation (Amendment) Rules, 2025

Water and Sanitation

Nothing critical to report this week

Center - State Relations 

The Union Government approves Electronics Manufacturing Cluster (EMC 2.0) for Uttar Pradesh. The project will be developed by the Yamuna Expressway Industrial Development Authority (YEIDA) and will support manufacturing across key areas like consumer electronics, automotive and industrial electronics, medical devices, computer hardware, and communication equipment. Startups and MSMEs will be able to get world-class plug-and-play infrastructure and shared facilities.

Source: The Hindu

In detail: Press release

The Ministry of New and Renewable Energy (MNRE) revises National Biomass Program. The amendments aim to support the smooth implementation of the biomass programme and timely delivery of approved financial support to commissioned plants. In addition, to address air pollution due to crop burning in Delhi, Punjab, Haryana, and NCR districts of Rajasthan and Uttar Pradesh, the revised guidelines allow biomass pellet producers from these regions to take benefits provided under the revised guidelines.

Source: Mercom

In detail: Press release

The Union Ministry of Environment, Forest and Climate Change (MoEFCC) issues the Model Rules for Felling of Trees in Agricultural Lands. The model rules aim to simplify regulations and promote agroforestry across States and Union Territories.

Source: Observer Voice

In detail: Press release

Any Other

The Union Government approves the Revised Jharia Master Plan (JMP). This decision of The Cabinet Committee on Economic Affairs will address the longstanding issues of coal seam fires, land subsidence, and rehabilitation of affected families in the Jharia coalfields. The revised plan adopts a phase-wise implementation strategy, prioritising handling of fire and subsidence and rehabilitation of the affected families from the most vulnerable sites

Source: Economic Times

In detail: Press release

Andhra Pradesh launches 'Vidya Shakti' for state-run schools and colleges. The new educational programme is technology-driven remedial teaching initiative that offers extra academic support to students in mathematics, science, and English outside regular school hours

Source: India Today

In detail: Andhra Pradesh-Vidyashakti programme

Bihar approves Surrogacy. The legal approval to surrogacy has been given after a long wait of four years. The state government has set-up a 24-member monitoring board comprising of doctors, MLAs, social workers, and women's rights activists to supervise the process and to make sure that all surrogacy procedures in the state follow the law and are done safely and fairly.

Source: Patna Press

In detail: Gazette notification

Maharashtra approves a Formal Monitoring Framework for crèches. The guidelines issued by the state government brings all crèches, privately run and government-aided, under the ambit of the framework. The guidelines are based on the National Minimum Standards and Protocol for Crèches, laying down clear rules on safety, hygiene, infrastructure, and staffing.

Source: Free Press Journal

In detail: National Minimum Standards and Protocol for Crèches

Programs & Projects