NEW DELHI: The Bihar Renewable Energy (RE) Policy 2025 has outdone frontrunner states in terms of concessions offered to investors as part of the Nitish Kumar-Led NDA government’s aim to make Bihar one of the top-10 green power producers in the country by achieving 24 gigawatts capacity by April 2030.
"As the free ISTS regime (inter-state transmission regime for solar power) is drawing to a close, Bihar is offering one of the most attractive policy regimes in the country. Those who invest in Bihar now will fetch maximum returns in time to come," state energy secretary Manoj Kumar Singh said.
Easing land-related issues, a bane for solar developers, lies at the heart of the policy. Additionally, financial incentives by way of exemptions of taxes, duties and charges make the policy more attractive in comparison to states such as UP, Rajasthan, Tamil Nadu, Gujarat and Odisha.
The key financial incentives include 100% exemption of electricity duty (for 15 years), SGST and transmission and wheeling charges. Additionally, no free power or contribution to Local Area Development Fund is to be sought from projects, which will get open access.for the whole tenure or 25 years, whichever is earlier.
The land-related incentives include full waiver of stamp duty or registration fees for lease, sale or transfer. In addition, the policy provides 100% reimbursement of land conversion fees. Additionally, allotment of government land at 50% concessional rate to the first 1,000 EV charging stations or 50 MW capacity, whichever is higher, for RE-based stations.
For promoting manufacturing capacity in the state, the policy offers priority allotment of government land on long-term lease, electricity duty exemption for 5 years, investment subsidy on SGST to RE equipment manufacturers and 100% exemption from custom duty for 5 years
The policy covers a wide range of technologies including solar, wind, biomass, green hydrogen, geothermal, pumped hydro, and battery storage systems. It emphasises the development of large-scale solar parks, grid-connected systems and significant battery energy storage systems, including 4,500 MWh of grid-level battery storage and 1,600 MWh of pumped storage.
On regulatory support and ease of doing business, the policy promises single-window clearances, deemed industry status for RE projects, relaxed norms for rooftop solar installations, energy banking as well as facilitation of green tariffs and carbon credit trading. It also includes targets for floating solar plants, elevated solar installations over ponds, agri-voltaic systems, and waste-to-energy projects.
This ambitious policy is a significant step for Bihar to meet its growing energy needs, reduce dependence on fossil fuels, and contribute to India's national climate targets, including achieving net-zero emissions by 2070.
"As the free ISTS regime (inter-state transmission regime for solar power) is drawing to a close, Bihar is offering one of the most attractive policy regimes in the country. Those who invest in Bihar now will fetch maximum returns in time to come," state energy secretary Manoj Kumar Singh said.
Easing land-related issues, a bane for solar developers, lies at the heart of the policy. Additionally, financial incentives by way of exemptions of taxes, duties and charges make the policy more attractive in comparison to states such as UP, Rajasthan, Tamil Nadu, Gujarat and Odisha.
The key financial incentives include 100% exemption of electricity duty (for 15 years), SGST and transmission and wheeling charges. Additionally, no free power or contribution to Local Area Development Fund is to be sought from projects, which will get open access.for the whole tenure or 25 years, whichever is earlier.
The land-related incentives include full waiver of stamp duty or registration fees for lease, sale or transfer. In addition, the policy provides 100% reimbursement of land conversion fees. Additionally, allotment of government land at 50% concessional rate to the first 1,000 EV charging stations or 50 MW capacity, whichever is higher, for RE-based stations.
For promoting manufacturing capacity in the state, the policy offers priority allotment of government land on long-term lease, electricity duty exemption for 5 years, investment subsidy on SGST to RE equipment manufacturers and 100% exemption from custom duty for 5 years
The policy covers a wide range of technologies including solar, wind, biomass, green hydrogen, geothermal, pumped hydro, and battery storage systems. It emphasises the development of large-scale solar parks, grid-connected systems and significant battery energy storage systems, including 4,500 MWh of grid-level battery storage and 1,600 MWh of pumped storage.
On regulatory support and ease of doing business, the policy promises single-window clearances, deemed industry status for RE projects, relaxed norms for rooftop solar installations, energy banking as well as facilitation of green tariffs and carbon credit trading. It also includes targets for floating solar plants, elevated solar installations over ponds, agri-voltaic systems, and waste-to-energy projects.
This ambitious policy is a significant step for Bihar to meet its growing energy needs, reduce dependence on fossil fuels, and contribute to India's national climate targets, including achieving net-zero emissions by 2070.
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