States Weekly: February 19, 2025

Big News: Assam approves the Assam Integrated Clean Energy Policy 2025; Gujarat releases the Gujarat Global Capability Centre Policy, 2025-30; Karnataka releases the Karnataka Clean Mobility Policy 2025-30; Karnataka releases the Karnataka Industrial Policy, 2025-30; Madhya Pradesh releases its Industrial Promotion Policy, 2025 and approves the Export Promotion Policy, 2024; and more.
Health
Gujarat releases a notification mandating all healthcare institutions, including hospitals, diagnostic labs, and clinics, to register under the Clinical Establishments Act 2024 by March 12. Institutions failing to register within the given time frame could face penalties of up to $5,757. Source: Gujarat Samachar; In detail: Gujarat Clinical Establishments (Registration & Regulation) Amendment Rules, 2024
Kerala allocates an additional $34.5 million for the “Karunya Arogya Suraksha Padhathi” (KASAP), the state’s integrated health protection scheme designed to provide coverage to over 6.4 million poor and vulnerable people. With this additional allocation, the total amount earmarked for the flagship scheme in the present financial year has gone up to $112.67 million. Source: Hindu Business Line; In detail: Press Release
Kerala approves the World Bank-funded Kerala Health System Improvement Programme (KHSIP), with an outlay of $398.8 million. The project is proposed to be implemented over five years in all 14 districts of the state. The project will receive external assistance of $279 million from the World Bank, and the balance amount of $119.6 will be provided by the state. Source: Onmanorama; In detail: World Bank Project Details
Climate Change and Energy
Karnataka launches the Karnataka Clean Mobility Policy, 2025-30. The policy aims to generate investments of $5.75 billion across the clean mobility value chain and create 100,000 new jobs in the sector. Key highlights include an incentive package, with the government offering subsidies of up to 25 percent on total invested capex across the state. Source: Hindu Business Line; In detail: Karnataka Clean Mobility Policy, 2025-30
Assam approves the Assam Integrated Clean Energy Policy, 2025 to promote solar, wind, mini and small hydro, green hydrogen, battery storage, electric vehicles, and other green energy projects in the state. Source: Economic Times; In detail: Cabinet Decisions
Rajasthan establishes a $23 million electric vehicle (EV) promotion fund under the Rajasthan EV Policy, 2022. The initiative, aligned with the Faster Adoption and Manufacturing of Hybrid and EVs (FAME-II) Guidelines, aims to encourage the adoption of EVs by offering state tax reimbursements and one-time grants to buyers of EVs equipped with modern battery technology. Source: NDTV; In detail: Press Release
Rajasthan Electricity Regulatory Commission introduces new regulations under the Rajasthan Electricity Grid Code, 2024, aimed at ensuring the efficient operation, management, and safety of the state’s power grid. These regulations focus on defining technical and operational standards for electricity transmission and distribution across the state. Source: Solar Quarter; In detail: Rajasthan Electricity Grid Code, 2024
Finance
Karnataka notifies the Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance, 2025. The ordinance requires micro finance institutions and lending agencies to apply for registration before the registering authority in the district. Source: Economic Times; In detail: Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance, 2025
Industrial Policy and Business Regulations
Gujarat releases the Gujarat Global Capability Centre Policy, 2025-30. The policy aims to set up at least 250 new Global Capability Centres in the state, attract $1.15 billion in investments, and create 50,000 jobs. Source: The Hindu Business Line; In detail: Gujarat Global Capability Centre Policy, 2025-30
Karnataka announces the Karnataka Industrial Policy, 2025-30 aiming to position the state as a top destination for high technology manufacturing investments in Asia. The policy aims to facilitate equitable and sustainable development, attract $86 billion in investments, and generate 2 million new jobs. Source: The Hindu; In detail: Karnataka Industrial Policy, 2025-30
Karnataka launches a new Single Window System, offering a streamlined and digital-first approach to facilitating and fast-tracking investments in the state. The system aims to improve ease of doing business. Source: Economic Times; In detail: Portal
Karnataka introduces the Karnataka Public-Private Partnership (PPP) Policy, 2025, to tackle financial hurdles and enhance infrastructure development. The policy opens 109 sectors and sub-sectors for private investment, aiming to attract more participation from the private sector in the state's development projects. Source: Prop News Times
Madhya Pradesh approves the Madhya Pradesh Industrial Promotion Policy, 2025 to promote investment in the state and create 2 million jobs in the state over the next five years. Source: Business Standard; In detail: Cabinet Decisions
Madhya Pradesh approves the Madhya Pradesh Export Promotion Policy, 2024. Under the policy, the government will provide financial assistance to exporters participating in international trade fairs and exhibitions, as well as provide subsidies on transportation and warehousing costs. The policy also includes the creation of a state level export promotion council. Source: Business Standard; In detail: Cabinet Decisions
Land Acquisition and Labor Regulations
Punjab and Haryana High Court rules that an employee cannot be fired while on maternity leave, setting an important legal precedent. The court’s decision came in response to a petition filed by a Punjab government employee who challenged the government’s termination of her employment during her sanctioned maternity leave. Source: The Print; In detail: Punjab and Haryana High Court Order
Infrastructure and Governance
Gujarat releases the Gujarat Scheme for Antyodaya Families for Augmenting Livelihoods (G-SAFAL). The scheme aimed at fostering economic independence and women's empowerment, targets 50,000 Antyodaya Anna Yojana cardholder families spread across 25 talukas in 10 districts over five years. Source: Devdiscourse
West Bengal releases the State Budget 2025 with an outlay of $44.8 billion. The budget increases the dearness allowance for state government employees by four percent, and focuses on rural development, prioritising infrastructure and welfare ahead of next year's assembly elections. Source: NDTV; In detail: West Bengal Budget Speech 2025-26
Tamil Nadu notifies the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025. The regulations bar all people under the age of 18 from playing online real-money games. Source: INC 42; In detail: Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025
Water and Sanitation
Nothing critical to report this week.
Center – State Relations
Union Ministry of Home Affairs issues a notification imposing President’s Rule in Manipur under Article 356 of the Indian Constitution. Former Manipur chief minister, Biren Singh resigned on February 9, 2025, amidst ongoing ethnic violence in the state. Source: DD News; In detail: Notification
NITI Aayog releases the report on Expanding Quality Higher Education through States and State Public Universities. Among all states and union territories, Jammu and Kashmir spends most for higher education as a percentage of GDP at 8.11 percent, followed by Manipur (7.25 percent), Meghalaya (6.64 percent), and Tripura (6.19 percent). In contrast, Delhi (1.67 percent), Telangana (2 percent), and Karnataka (2.01 percent) allocate significantly less towards higher education. Source: The Hindu; In detail: Press Release
Indian Institute of Public Affairs releases a report titled Status of Devolution to Panchayats in States. As per the report, Karnataka has been ranked first in devolution of power to panchayats in terms of funds, functions and functionaries followed by Kerala, Tamil Nadu, Maharashtra and Uttar Pradesh. Source: Financial Express; In detail: Status of Devolution to Panchayats in States 2024
Any Other
Nothing critical to report this week.