India’s Assam state scraps clean energy policy, threatening renewable investment

NEW DELHI: India’s northeastern state of Assam has withdrawn its flagship clean energy policy announced in February, according to a document reviewed by Reuters and sources with direct knowledge of the matter, clouding millions of dollars of planned investments.

Earlier this year, Assam, the largest state in India’s northeast, sought to attract investments to a region that has lagged in renewable energy adoption by offering financial incentives and waivers.

The February policy offered subsidies on power transmission and eased bank guarantee requirements to support clean energy projects in the state.

An internal memo dated July 18, reviewed by Reuters, said the integrated clean energy policy was withdrawn following a cabinet decision, without specifying the reason for its reversal.

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Assam’s power department did not respond to a Reuters email seeking comment on the policy withdrawal.

The Assam government has not issued an official withdrawal of the clean energy policy, industry sources said.

Energy companies including NTPC Green, Larsen & Toubro, Singapore-listed Sembcorp, and Abu Dhabi-based Ocior have bid for green hydrogen projects in Assam, the sources and bid documents reviewed by Reuters said.

Inconsistent policies from state governments pose challenges to planned investments, said a senior NTPC official, who did not want to be identified due to the sensitive nature of the matter.

In June, Reuters reported that Assam had put its flagship green hydrogen policy on hold, surprising investors.