States Weekly: April 23, 2025

Big News: Gujarat cuts EV tax to 1 percent and unveils a $5 billion SpaceTech Policy; Tamil Nadu clears its own Space Industrial Policy and launches the “Kalaignar Kaivinai Thittam” for artisans; Maharashtra rolls out the New Education Policy 2020 with Hindi as a mandatory third language; Chhattisgarh waives old VAT dues to support MSMEs; and more.
Health
Nothing critical to report this week.
Climate Change and Energy
Nagaland launches the Nagaland Solar Mission, aimed at accelerating the adoption of residential rooftop solar power systems. The programme is aligned with the central government’s “PM Surya Ghar Muft Bijli Yojana” and seeks to make clean energy more accessible and affordable across the state. Under the mission, beneficiaries will receive up to 96 percent subsidy for solar systems up to 2 kilowatts and 85 percent for systems up to 3 kilowatts, significantly lowering the cost for residents. Source: Saur Energy; In detail: Press Release
Delhi extends the Electric Vehicle (EV) policy by three months and continuation of power subsidy in the Capital. The state expects to release the Electric Vehicle Policy 2.0 soon. Source: Indian Express; In detail: Press briefing (video link)
Finance
Uttar Pradesh signs a memorandum of understanding with the National Stock Exchange (NSE) to enhance financial opportunities for micro, small, and medium enterprises (MSME) in the state. The collaboration seeks to empower the state’s vast MSME sector by facilitating capital mobilisation through public listings on the NSE Emerge platform. Source: EletsTechnomedia; In detail: Press Release
Industrial Policy and Business Regulations
Andhra Pradesh approves the Minor Mineral Policy, 2025 to revive the mining sector and support MSMEs. The policy reintroduces application-based leases for granite and building materials, while industrial minerals will follow a production-linked auction model. Over 6,000 pending lease applications will be processed on a first-come basis. The policy revokes the 2021 consideration amount, reduces lease premiums, rationalizes penalties through a one-time settlement scheme, and introduces a clear, tonnage-based fee structure. Source: Times of India
Tamil Nadu clears the Space Industrial Policy, 2025, targeting $1.2 billion in investments and 10,000 high-value jobs. The policy promotes end-to-end participation in the space-tech value chain through industrial clusters or “Space Bays” in southern districts. Startups and MSMEs will benefit from fast-tracked clearances, while all space-tech companies will receive a 50 percent subsidy on clearance charges. Source: Business World; In detail: Draft Tamil Nadu Space Industrial Policy 2024
Gujarat launches the SpaceTech Policy, 2025–2030, aiming to attract $5 billion in investment and generate 25,000 jobs. The policy offers comprehensive fiscal and non-fiscal incentives, including support for satellite and component manufacturing, propulsion systems, ground stations, and application design. Key provisions include the creation of a dedicated Space Manufacturing Park and a Centre of Excellence in Space Technologies for R&D, skill-building, and innovation. Source: Hindustan Times; In detail: Gujarat SpaceTech Policy, 2025–2030
Land Acquisition and Labor Regulations
Nothing critical to report this week.
Infrastructure and Governance
Delhi announces a rise in minimum wages for all workers in the city by up to $ 5.85. The new wages will be applicable with effect from April 1. Source: Hindustan Times; In detail: Order
Madhya Pradesh launches the “Krishik Kalyan” Mission to strengthen farmer welfare through targeted investments in irrigation, crop diversification, and rural agri-infrastructure. The mission focuses on input support for smallholders, expansion of organic and millet farming, and localized value chains via FPOs and procurement networks. Source: Daily Pioneer; In detail: Press Release
Chhattisgarh approves a key amendment to the Outstanding Tax, Interest, and Penalty Settlement Ordinance, 2025, waiving value added tax (VAT) liabilities up to ₹25,000 in cases pending for over 10 years. The move is expected to benefit over 40,000 small traders and reduce more than 62,000 litigation cases, creating a more supportive environment for MSMEs. Source: Millennium Post; In detail: Cabinet Decision
Gujarat reduces motor vehicle tax on electric vehicles from 6 percent to 1 percent, effective until March 31, 2026. The move offers EV buyers savings between $360 and $1,200, depending on vehicle cost. For example, a $12,000 EV now incurs just $120 in tax instead of $720. Online registration via the Vahan 4.0 portal is required. The tax relief follows the rollback of earlier EV subsidies and aims to revive demand, with the state targeting 200,000 EVs by 2025, a 6 lakh tonne reduction in carbon emissions, and fuel savings of $600,000. Source: Economic Times
Tamil Nadu launches the “Kalaignar Kaivinai Thittam (KKT)”, an artisan development scheme supporting 25 traditional crafts through financial aid, skill development, and entrepreneurship training. Artisans can access loans up to $3,600, with a 25 percent capital subsidy (capped at $600) and an interest subsidy of up to 5 percent. Unlike the centre’s Vishwakarma Yojana, the KKT removes caste criteria and raises the minimum eligible age to 35. The scheme also includes $600,000 for infrastructure upgrades in Kancheepuram and enhances Geographical Indication (GI) subsidies to $1,200. Source: The Print; In detail: Press Release
Water and Sanitation
Nothing critical to report this week.
Center – State Relations
Nothing critical to report this week.
Any Other
Maharashtra announces phased implementation of the National Education Policy (NEP), 2020 starting 2025–26. Under the revised 5+3+3+4 structure, Hindi will be made a compulsory third language for Classes 1 to 5 in Marathi and English medium schools. The policy will be rolled out grade-wise through 2028–29, with 80 percent of teachers to be trained in digital tools and pedagogy. Source: India Today