Bihar eyes ₹1.5 trillion investment for 24GW green power capacity under RE policy
By Rituraj Baruah
Bihar has launched a bold new renewable energy (RE) policy aimed at attracting investments worth ₹1.5 trillion. The policy targets nearly 24GW of renewable energy capacity and 6GWh of energy storage by the end of FY2029-30.
This is the estimated investment that renewable energy developers (both public and private sector companies) would make to set up the nearly 24GW capacity.
The policy includes sweeping reforms to fast-track project approvals, lower developers’ costs, and provide incentives for clean energy manufacturing and electric vehicle (EV) charging infrastructure.
The energy mix will include solar, wind, hybrid, biomass and waste-to-energy.
“According to the Central Electricity Authority (CEA), Bihar needs to add over 23GW of renewable capacity by FY30, and in line with this, the target has been set. The potential investment for this capacity is expected to be around ₹1.5 trillion,” said Manoj Kumar Singh, Bihar’s energy secretary.
An official statement noted that the policy’s objectives align with India’s broader net-zero ambition for 2070. “We are offering one of the most attractive policy regimes in the country. Those who invest in Bihar now will fetch maximum returns and lead India’s clean energy revolution from the front,” the statement quoted Singh as saying.
To incentivize investment and speed up implementation, the Bihar government has promised a 100% waiver on electricity duty for 15 years, 25-year long-term open access, and exemption from transmission and wheeling charges. State utilities will also bear the cost of building transmission and distribution infrastructure up to 10km from the project site.
In terms of ease of doing business, a single-window clearance system will be set up for faster project approvals. Developers will also benefit from full state goods and services tax (SGST) reimbursement, exemption from stamp duty on land lease or transfer, and waiver of land conversion fees.
The Bihar Renewable Energy Development Agency (BREDA) will be the state nodal agency (SNA) for most renewable energy projects. Bihar State Hydroelectric Power Corp. Ltd (BHPC) will be the nodal agency for hydropower projects, and Bihar State Power Generation Co. Ltd will be the nodal agency for pumped storage projects in the state.
Additionally, projects will be supported by a robust payment security mechanism, minimum generation compensation, and customized feed-in tariffs for different RE technologies.
The policy states that the project developer is responsible for acquiring the required resources to set up the project.
However, in case of resources owned by the state government, allotment will be done as per the prevailing government policy. BREDA will also create a ‘Resource Information Bank’ for every district, which will be made accessible online through the BREDA website. Resource owners, including farmers, may come forward and provide the details of their resource to the concerned officials or BREDA. The district-level officer of the concerned resource will gather details of their source suitable for deployment of RE projects in the respective district. BREDA will collect the same at the state level.
BREDA will also take initiatives to aggregate resources from different stakeholders that can be used to develop RE projects.
Recognizing the synergy between clean power and clean mobility, the policy includes incentives for EV charging stations, although specific details on subsidy structures or rollout timelines were not disclosed.
Bihar also aims to become a hub for renewable energy component manufacturing. To this end, it is offering manufacturers priority allotment of government land on long-term lease, five-year electricity duty exemption, 100% stamp duty exemption, investment subsidies on SGST, and five-year customs duty exemption.
A minimum of 5% of the state’s annual budget will be allocated for research and development (R&D).
This initiative will be guided by a new Bihar R&D and Innovation Committee, chaired by the director of BREDA.
This article has been republished from The Livemint.