Bihar unveils the policy to stimulate the clean energy economy with GST exemption from the state, incentives for EV loading stations

Bihar unveils the policy to stimulate the clean energy economy with GST exemption from the state, incentives for EV loading stations

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Manoj Singh, Energy Secretary, Government of Bihar

The Bihar government unveiled its policy on Friday to expand the clean energy economy in the state, including incentives such as no stands and country at concessional rates for EV -charging stations.

The policy is intended to promote the involvement of stakeholders in the production and use of renewable energy (RE) projects, while the integration of advanced and efficient technologies in generation and storage is encouraged. These will help create a RE that can generate employment in segments, emphasizes Manoj Kumar Singh, secretary of Bihar Energy.

“By the way, with the Free ISTS (Free ISTS regime) regime, it is time for industry to act. We offer one of the most attractive policy regimes in the country – those who invest in Bihar will now achieve maximum returns and lead the revolution from the front of the front,” he said line.

The policy to improve employment and investment options in Bihar comes at a time when the state is on its way to polls in the next 3-4 months.

Developer-oriented policy Push

The Bihar Renewable Energy Policy, 2025, which identifies the appetite of the state to support 23.97 Gigawatt (GW) of RE and 6.1 GW -hours (GWH) of energy storage by FY30, ensures that “uncontrolled safety” for developers, the state government, stressed.

The policy offers critical incentives such as no GST payments, open access for the entire term of office of the project, no free electricity offer and zero contribution to the Local Area Development Fund.

By the way, the allocation of the government country with a concessional rate of 50 percent to the first 1,000 or 50 megawatts (MW) capacity, depending on which higher, will help increase the importance of investors to set up re -powered EV charging stations.

The policy also introduces a very competitive package of stimuli that are designed to attract investors and developers, including a streamlined single-window approval system to accelerate project approvals.

The policy grants a distance of 100 percent over the electricity duration for 15 years and also offers open access in the long term for 25 years, together with full exemption from transmission and wheel loads.

State companies will bear the costs of transmission and distribution infrastructure up to 10 kilometers, with shared responsibility outside that point.

“Renewable energy projects will enjoy the status of the ‘must run’ and individual feed-in tailor-made rates for various technologies, together with guarantees such as minimal generation compensation, energy banking and a robust mechanism for payment security,” the state government emphasized.

Developers will also benefit from priority access to government grounds for long -term lease contracts, the status of industry and qualify to claim carbon credits under the UNFCCC or other national regulations.

In particular, at least 5 percent of the renewable energy budget will be assigned exclusively to R&D initiatives.

“What really distinguishes Bihar is the insured market for renewable energy within the state. According to the Resource Adequacy Plan of the Central Electricity Authority (CEA), Bihar has to buy around 23 GW of Re by FY30 – those developers an unparalleled market safety,” assured.

In the case of loss in the generation of re -power from projects developed in Bihar by the failure of the grid, the Re -generator is eligible for compensation for the power insurance policy, says the policy.

In addition, in consultation with the departments, the Nodal Agency will set up a payment protection mechanism for the sale of electricity to public services and discoms, in accordance with the guidelines of the Ministry of Union Power, it added.

Published on July 11, 2025

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