Bihar has embarked on a transformative journey towards a sustainable energy future, unveiling two landmark policies and attracting over ₹5,000 crore in green energy investment proposals. The “Bihar New and Renewable Energy Sources Promotion Policy-2025” and the “Pumped Storage Project Promotion Policy-2025” are set to revolutionise the state’s power landscape, positioning Bihar as a key player in India’s decarbonisation efforts and fostering eco-friendly urban and rural development.
The launch event in Patna witnessed the signing of several pivotal Memoranda of Understanding (MoUs) with leading public sector undertakings and corporate giants, signifying robust investor confidence in Bihar’s green energy push. A standout agreement was formalised between NTPC Green Energy Limited (NGEL) and Bihar State Power Generation Company Limited (BSPGCL) for the establishment of a 1000 MW Battery Energy Storage System (BESS), valued at ₹1,500 crore. This substantial investment in energy storage is critical for integrating intermittent renewable sources into the grid, ensuring stability and reliability of power supply.
Further bolstering the state’s renewable energy capacity, BREDA and Avaada Energy inked a pact for developing 1 GW of ground-mounted and floating solar projects. BSPGCL also collaborated with SECI (Solar Energy Corporation of India) on a significant ₹3,000 crore green energy venture. Additionally, Larsen & Toubro committed to developing a 116 MW/241 MWh BESS at Kajra, Lakhisarai, at a cost of ₹837.66 crore, further diversifying the state’s energy storage capabilities and attracting major industrial players.
Bihar’s Energy Minister Bijendra Prasad Yadav affirmed that these “forward-looking policies” will not only propel Bihar into the green energy forefront but also unlock new avenues for employment generation and industrial expansion. The state has outlined investor-centric incentives, including 100% State GST exemption, waiver of stamp duty and registration fees, exemption from STU charges, and a 100% customs duty exemption for five years. These comprehensive fiscal benefits are designed to create an exceptionally attractive environment for green energy investments, reinforcing the state’s commitment to supporting investors at every step.
Industry Minister Nitish Mishra further announced the impending unveiling of the Bihar Industrial Policy 2025, alongside plans for a major 1700-acre industrial cluster in Gaya. This strategic development will offer ample investment scope in both conventional and non-conventional energy sectors, creating a holistic ecosystem for industrial growth powered by sustainable energy. The integration of green energy initiatives with industrial policy is crucial for fostering zero-net-carbon industrialisation and ensuring equitable economic opportunities across the state.
With its robust policy support, comprehensive incentive framework, and strategic collaborations with industry leaders, Bihar is poised to emerge as a formidable green energy hub. This concerted effort will not only drive the state’s climate goals but also catalyse significant economic transformation, improving public health by reducing pollution and ensuring reliable, sustainable power access for all its citizens, thereby contributing significantly to India’s broader environmental and developmental aspirations.
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