Bihar Renewable Energy Policy 2025 Leads India with Most Investor-Friendly Plan
The Bihar government has once again got the spotlight for introducing the most investor-friendly renewable energy policies in India. The Bihar cabinet has recently approved the Bihar Renewable Energy Policy 2025 which is said to be better than the leading states in this sector such as Gujrat and Rajasthan. Bihar now eyes a spot among the top 10 spots for green energy production among all other Indian states. The policy will attract investment into the state because it offers great financial benefits for the investors.
We have covered everything about the Bihar Renewable Energy Policy 2025 in this article including the details of the policy, incentives and goal of Bihar government. You can use the following Table of Contents to navigate as per your preference:
Table of Contents
Bihar Aims For 24 GW of Renewable Energy by 2030
The Bihar Renewable Energy Policy 2025 is targeted at increasing the energy production from 1 GW to 24 GW in less than five years (i.e. by 2030). Manoj Kumar Singh who is the secretary of the Bihar government’s Energy Department, said that this is the perfect time for investors to come to Bihar because the central government has announced ending free inter-state transmission. So to grab this opportunity, the Bihar government has devised a lucrative policy that will provide massive incentives to the investors. With the Bihar Renewable Energy Policy 2025, the government wants to increase the ease of doing business in the state.
Financial Benefits for Investors
The Bihar Renewable Energy Policy 2025 stands out because of its tax exemptions. Some of the benefits are mentioned below:
- For 15 years straight, electricity will be 100% exempted from duty/taxation.
- There will be on SGST on renewable energy
- Zero transmission and wheeling charges
- No need to give free power to the state
- No Local Area Development Fund contribution needed
- Guaranteed open access for up to 25 years
These benefits will help Bihar stand out as the most cost-effective states for setting up solar plants or other renewable energy projects.
Land Acquisition Made Easy
Land acquisition is one is the major challenges for renewable energy projects. But the Bihar government is cleverly making it easy with the Bihar Renewable Energy Policy 2025:
- No stamp duty and registration fees
- 100% refund on land conversion charges
- 50% tax relaxation on government land for setting up EV charging stations (up to 1,000 stations or 50 MW capacity)
- Offering long-term lease options for manufacturers
This will reduce costs and speeds up the project, which is important for developers who work on tight budgets.
Boost for Local Manufacturing Industry
Apart from the benefits of big companies, the Bihar government is also providing benefits for domestic manufacturing industry which deals with the manufacturing of panels, batteries, or other renewable equipment. Some of the benefits are mentioned below:
- They will be given priority in land allotment
- Will be free from paying duty on electricity for 5 years
- Investment subsidy on SGST
- 100% free from customs duty for 5 years
This will also create more local jobs and boost medium- and large-scale investment from the private sector.
Conclusion
The Bihar Renewable Energy Policy 2025 can prove to be a game-changer for Bihar’s energy security goals. The state is set to achieve massive success with the financial benefits it is providing. In future, if the policy becomes a hit, other states can also roll out similar rules.
The Bihar government has also announced the Greenfield Township Project for 12 major cities of Bihar. You can get all the details here.
I’m a final-year engineering student with a deep interest in current affairs, politics, and international issues. Writing news is my part-time passion, where I focus on sharing credible and well-researched stories. Every article I publish is backed by verified sources and multiple levels of fact-checking to ensure accuracy and trustworthiness.
