States Weekly: April 2, 2025

Big News: Union Ministry of Home Affairs extends the Armed Forces (Special Provisions) Act (AFSPA) in parts of Manipur, Nagaland, and Arunachal Pradesh; Delhi, Goa, Punjab, and Sikkim present State Budgets, 2025-26; Madhya Pradesh releases the Renewable Energy Policy, 2025; Andhra Pradesh launches the Innovation and Startup Policy 2024-29; and more.

Health 

Delhi mandates that all hospitals and health care centres in the state will procure medicines exclusively from the “Pradhan Mantri Jan Aushadhi Kendras”, allowing local purchases only in emergency situations. Source: India TV

Himachal Pradesh the Himachal Pradesh Drugs and Controlled Substances (Prevention, De-Addiction and Rehabilitation) Bill, 2025, to address increasing drug abuse in the state. The bill includes provisions for life imprisonment for selling drugs to minors or near educational institutes, special court hearings for drug trafficking related cases, support for de-addiction treatment, and fines between $230-$580 for possession of smaller quantities of drugs. Source: MSN

Telangana passes the Telangana Transplantation of Human Organs Bill, 2025 to align the state’s organ transplantation regulations in line with the Central Act and curb illegal organ trade. Source: The Hindu

Climate Change and Energy

Madhya Pradesh releases the Renewable Energy Policy, 2025, outlining a comprehensive strategy to increase the state’s renewable energy capacity, attract investments, and integrate green power into its overall energy mix. The policy will remain effective for five years and applies to all renewable energy (RE) projects with a minimum capacity of 500 kilowatts (kW). As per the policy, Madhya Pradesh has set a target to meet 50 percent of its annual power demand through renewable energy sources by 2030. Source: Economic Times; In detail: Madhya Pradesh Renewable Energy Policy 2025

Andhra Pradesh Electricity Regulatory Commission (APERC) releases the Retail Supply Tariff (RST) Order,2025-26, covering tariff rates for retail electricity sales and reviewing the performance of distribution companies for 2023-24. As per the order, the state has reduced transmission and distribution losses. Furthermore, the order focuses on further renewable energy adoption. Source: Solar Quarter; In detail: APERC Order

Bihar Electricity Regulatory Commission (BERC) releases the draft Renewable Purchase Obligation (RPO) Regulation, 2025 outlining the RPO compliance and the renewable energy certificate (REC) framework for 2025. This draft regulation aims to ensure a structured approach to increasing renewable energy consumption in the state while aligning with national policies. Source: Solar Quarter; In detail: Bihar Draft RPO Regulation 2025

Karnataka amends the Data Centre Policy 2022-2027 removing the 5 MW cap on green power tariff reimbursement for data centre entities, allowing them to claim up to $146,105 in incentives. Source: Business World

Karnataka Electricity Regulatory Commission (KERC) issues the Multi-Year Tarriff Order reducing the electricity tariffs but increasing fixed charges. For domestic consumers, the energy charge will drop from $0.068 to $0.0677 per unit in 2025-26 and further to 0.0672 by 2027-28. However, the fixed charge per kilowatt (KW) will rise from $1.4 to $1.69 per month in the first year, reaching $1.8 by the third year. Source: Money Control; In detail: Tariff Order

Rajasthan Electricity Regulatory Commission (RERC) approves a pre-determined levelized tariff of 3.04 (~$0.036)/kWh for 5,000 MW solar capacity under Component-A of the “Pradhan Mantri Kisan Urja Surakshaevam Utthaan Mahabhiyan” (PM-KUSUM). This tariff will also be the ceiling price in future competitive bidding processes. Source: Mercom

Himachal Pradesh Electricity Regulatory Commission issues the Tariff Order, 2025-26, reducing the electricity prices for domestic, commercial, and industrial consumers. Domestic consumers will get electricity $0.0017 cheaper per unit. Commercial consumers will see a $0.0014 per unit reduction. Small, medium, and large industries will benefit from a $0.002 per unit decrease to promote industrialization in the state. No changes have been made to fixed/demand charges for any category. Source: The News Himachal; In detail: Tariff Order

Nagaland hosts the inaugural meeting of the Nagaland Solar Mission. The mission aims to align the state government initiatives with the PM Surya Ghar Muft Bijli Yojana. The state government announced subsidy on rooftop solar installation costs to supplement the central government subsidy ranging between 31-36 percent for projects between 3-1 KW. Source: Solar Quarter; In detail: Press Release

Punjab State Electricity Regulatory Commission (PSERC) issues the Tarriff Order, 2025-26 with no hike in electricity charges for domestic consumers. Source: Business Standard

Finance

Nothing critical to report this week.

Industrial Policy and Business Regulations  

Andhra Pradesh launches the Innovation and Startup Policy 2024-29, with a target of creating 20,000 startups and generating employment for 100,000 people over the next five years. Source: ETV; In detail: Andhra Pradesh Innovation and Startup Policy 2024-29

Haryana extends the “Atma Nirbhar” Textile Policy 2022-25 along with its subsequent schemes by one year till December 18, 2026. The government has also removed the cap on the number of cases under the capital investment subsidy for textile units scheme as part of the policy. Source: Mint; In detail: Press Release

Land Acquisition and Labor Regulations  

Nothing critical to report this week.

Infrastructure and Governance

Delhi presents the State Budget, 2025-26 with an outlay of $11.68 billion. The budget marks a 31.6 percent increase in outlay as compared to the last year. The budget focuses on education with a 19.3 percent allocation, followed by transport and health. Source: Times of India; In detail: Delhi Budget Speech

Goa presents the State Budget, 2025-26 with an outlay of $3.29 billion. The budget focuses on the creation of tourism infrastructure, renewable energy, easy transport, 100 percent literacy and fast delivery of public services. Source: Herald Goa; In detail: Goa Budget Speech

Punjab presents the State Budget, 2025-26 with an outlay of $27.09 billion The budget focuses on tackling the drug menace and improving the health sector in the state. Additionally, the government also proposed setting up a second line of defence at the border by deploying 5,000 home guards alongside the Border Security Forces. Source: Business Standard; In detail: Punjab Budget Speech

Sikkim presents the State Budget, 2025-26 with an outlay of $18.36 billion. The budget focuses on poverty reduction, welfare initiatives, rural progress, education, and healthcare. Source: India Today

Himachal Pradesh passes the Himachal Pradesh Organised Crimes (Prevention and Control) Bill, 2025. The bill expands the definition of organized crime to include drug trafficking, organ trade, and healthcare fraud, and levies stricter penalties. Source: MSN

Haryana launches the One Time Settlement Scheme, 2025. The scheme is designed to provide relief to thousands of smallshopkeepers, traders, and entrepreneurs with pending tax dues. Under the scheme, taxpayers with outstanding dues up to $11,688 will receive a rebate of up to $1,168. Source: Times of India; In detail: Press Release

Maharashtra announces a compensation payout of $298.6 million under the crop insurance scheme. This amount will be directly credited to the bank accounts of 6.4 million farmers, providing much-needed financial support. The government has also approved the distribution of $333.3 million as the pending state share of the subsidy to insurance companies. Source: Mid-day

Telangana issues guidelines for the “Rajiv Yuva Vikasam Scheme” which is aimed at providing financial assistance up to $4,675 to young citizens from scheduled caste (SC), scheduled tribe (ST), backward classes (BC), minority, extra backward class (EBC) and economically weaker section (EWS) communities. Source: The Hindu; In detail: Scheme Details

Kerala passes the Kerala State Private Universities (Establishment and Regulation) Bill, 2025, thereby pacing the way for private educational institutes in the state. Source: Economic Times; In detail: Kerala State Private Universities (Establishment and Regulation) Bill, 2025

Odisha launches the “Antyodaya Gruha Jojana”. Under the scheme, all eligible households left out from the ongoing housing schemes, victims of natural or man-made calamities, households displaced due to development projects, person with disabilities (PwD) who are the main earning member of a family and forest rights act beneficiaries will be sanctioned pucca houses. Source: Deccan Herald; In detail: Antyodaya Gruha Yojana Guidelines

Water and Sanitation

Nothing critical to report this week.

Center – State Relations 

Union Ministry of Home Affairs extends the Armed Forces (Special Powers) Act (AFSPA) across Manipur, except for 13 police station areas, for another six months due to the prevailing law and order situation. The Act has also been extended in eight districts of Nagaland and 21 police station areas in five additional districts, as well as in some districts of Arunachal Pradesh. AFSPA grants powers to security forces operating in disturbed areas including the authority to search, arrest, and use force without prior approval. Source: Times of India; In detail: AFSPA notification Manipur; AFSPA notification Nagaland; AFSPA notification Arunachal Pradesh

Union Government disburses the second instalment of the Fifteenth Finance Commission (XV FC) Grants for rural local bodies in Tripura and Karnataka for the financial year 2024–25. The funds aim to strengthen local governance and support rural development initiatives. Tripura has received $3.63 million, while Karnataka has been allocated $47.33 million. Source: Business World; In detail: Press Release

Any Other

Haryana passes the Haryana Prevention of Public Gambling Bill, 2025. The bill proposes a jail term of up to five years for sports match fixing or spot fixing. Source: Babushahi; In detail: Press Release

Karnataka orders a survey of all scheduled caste citizens in the state to collect empirical data for sub-classifying them and providing internal reservations. Source: Deccan Herald

Punjab Biodiversity and Natural Resources Conservation Project signs a $78.2 million loan agreement with the Japan International Cooperation Agency (JICA) to enhance the ecosystem and address climate change challenges in the state. Source: Times of India

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Akshat Singh
Associate Fellow, Chair on India and Emerging Asia Economics