States Weekly: February 26, 2025

Big News: Madhya Pradesh approves the Madhya Pradesh Clean Energy Policy, 2025, and introduces the draft Madhya Pradesh Electric Vehicle Policy, 2025; Gujarat, Odisha, Rajasthan, Uttarakhand, and Uttar Pradesh releases State Budgets for 2025-26; Madhya Pradesh approves the Madhya PradeshMicro, Small, and Medium Enterprises (MSME) Development Policy, 2025; Goa creates the Drinking Water Department; and more.

Health 

Nagaland launches the “Niramaya” Health Insurance Scheme to provide healthcare coverage for individuals with autism, cerebral palsy, intellectual disability, and multiple disabilities. The scheme up to $1,150 annually for hospitalization, therapy, corrective surgeries, and alternative treatments. Source: North East Today; In detail: Press Release

Climate Change and Energy

Andhra Pradesh announces the state’s first standalone Battery Energy Storage System tender with a capacity of 500 MW/1000 MWh under the viability gap funding scheme. The initiative is part of India's larger effort to integrate renewable energy sources and enhance grid stability. Source: Deccan Chronicle; In detail: Tender Notice

Madhya Pradesh introduces the Madhya Pradesh Electricity Supply Code 2021 (Fifth Amendment) [ARG-1(II)(v) of 2025]. The amendment includes key changes such as updating the definition of “applicant” to include individuals or groups who apply for an electricity supply, such as property owners, developers, and groups of consumers. Additionally, the definition of a “consumer” has been expanded to include individuals who receive electricity for personal use, either from a licensed supplier or the government. Source: Solar Quarter; In detail: Madhya Pradesh Electricity Supply Code 2021 (Fifth Amendment) [ARG-1(II)(v) of 2025]

Madhya Pradesh approves the Madhya Pradesh Clean Energy Policy, 2025. The policy targets investment worth $5.7 billion in the renewable energy generation sector, and $1.14 billion in the renewable energy manufacturing sector by 2027. Source: The Week; In detail: Cabinet decisions

Madhya Pradesh releases the draft Madhya Pradesh Electric Vehicle Policy, 2025. The policy aims to achieve 40 percent new registrations in electric two-wheelers and 100 percent of commercial fleet; 70 percent of new registrations in e-three wheelers in both passenger and freight segments; 15 percent of new registrations for e-four-wheelers; and 40 percent of new registrations in the electric bus segment. Source: Mercom India; In detail: Draft Madhya Pradesh Electric Vehicle Policy, 2025

Finance

Gujarat releases the Gujarat State Budget 2025-26, with an allocation of $42.6 billion. The budget focuses on education, infrastructure, skill development, and social welfare. Major highlights include a $7 billion allocation for education, reinforcing Gujarat's commitment to modernizing its education system to align with global standards. Source: Times of India; In detail: Gujarat Budget 2025-26

Odisha releases the Odisha State Budget 2025-25 with an outlay of $33.43 billion. The budget focuses on further developing agriculture and irrigation in the state and additionally notes that around 48 percent of the state's workforce depends on agriculture and 80 percent of people live in rural areas. Source: Economic Times; In detail: Budget Speech Part 1, Budget Speech Part 2

Rajasthan releases the Rajasthan State Budget 2025-26. Terming it as the state’s first “Green Budget,” the government laid special emphasis on climate change adaptation, forests, environment, and biodiversity. The government announced 150 units of free electricity per month to households installing solar plants and also announced community solar plants for low-income families. Source: NDTV; In detail: Budget at a glance 2025-26

Uttarakhand presents the Uttarakhand State Budget 2025-26 with an outlay of $11.53 billion. The budget focuses on innovation, agriculture, connectivity and infrastructure development. The total budget size has been increased by 13 percent compared to the budgetary allocation of $10.26 billion for the current fiscal. Source: Business Standard; In detail: Budget Speech

Uttar Pradesh releases the Uttar Pradesh State Budget 2025-26 with an outlay of $93.15 billion. The budget focuses on infrastructure, education, and agriculture. Key highlights include the revision of minimum monthly salaries for outsourced workers to $230.59 from $184.47. Additionally, the government announced free medical treatment up to $5764.8 for certain categories of government contractual employees. Source: Business Standard; In detail: Uttar Pradesh Budget Speech 2025-26 (in Hindi)

Karnataka approves amendments to the Karnataka Exorbitant Rate of Interest Act and the Pawnbrokers Regulatory Act aimed at strengthening penalties against cooperative societies and pawnbrokers charging exorbitant interest rates. The amendments come after the state government’s microfinance regulatory ordinance, which include increasing imprisonment terms and penalties for violations. Source: Times of India

Industrial Policy and Business Regulations  

Madhya Pradesh introduces the Madhya PradeshExcise Policy, 2025. Effective from April 1, 2025, the policy will restrict the sale of liquor in 19 places, including 17 religious cities. The policy also introduces the concept of a low alcoholic beverage bar, which will be allowed to serve drinks with a maximum of 10 percent alcohol content. Source: Hindustan Times; In detail: Madhya Pradesh Excise Policy 2025-26

Madhya Pradesh approves the Madhya PradeshMicro, Small, and Medium Enterprises (MSME) Development Policy, 2025. The policy includes investment promotion incentives up to 40 percent, and up to 52 percent investment assistance on freight, capped at $229,000, along with $57,250 for export certification. Source: The Week; In detail: Madhya Pradesh MSME Development Policy, 2025

Land Acquisition and Labor Regulations  

Chhattisgarh releases a notification announcing that shops, parlours, cafes, and restaurants across the state will be allowed to operate 24 hours a day. Additionally, the state has allowed women to work during the night. The move is aimed at stimulating business growth, generating employment, and enhancing urban infrastructure. However, the notification stipulates that all liquor shops will continue to close at 10 pm. Source: India Today; In detail: Notifications

Goa notifies the Goa Legislative Diploma No. 2070 (Amendment) Act, 2025, which introduces new provisions allowing the Administrator of Comunidades (land associations in Goa) to reclaim land that has been used for purposes other than those for which it was originally granted. The reversion of such land to the Comunidade will require the approval of the government. Source: Herald Goa; In detail: Goa Legislative Diploma No. 2070 (Amendment) Act, 2025

Telangana announces Land Regularisation Scheme offering a 25 percent rebate for applicants, who pay the land regularisation fee and open space charges on or before March 31, 2025. The policy aims to incentivize permanent land settlement by existing users. Source: Telangana Today; In detail: Telangana Land Regularisation Scheme

Uttarakhand releases the Uttarakhand (Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950) (Amendment) Act, 2025 effectively banning the sale of agricultural and horticultural land to people who do not live in the state. Non-residents are only allowed to purchase 250 square metres of residential land, with strict one-purchase-per-family restrictions. Source: Hindustan Times

Infrastructure & Governance

Delhi appoints BJP’s Rekha Gupta as the chief minister of the state. BJP leader Parvesh Verma takes oath as the deputy chief minister. Source: Indian Express; In detail: Delhi Chief Minister Oath Taking Ceremony

Maharashtra approves the establishment of the sixth State Finance Commission. The Commission will play an important role in financial planning and resource allocation in the State, review the financial position of panchayats and municipalities and make various recommendations such as dividing the net revenue to be distributed among the panchayats and municipalities. Source: The Hindu

Arunachal Pradesh revamps the “Dulari Kanya” Scheme raising fixed deposit granted after the births of girl children from $230.59 to $345.88. Source: The Hawk; In detail: Dulari Kanya Scheme

Jharkhand releases the Jharkhand Student Research and Innovation Policy, 2025 aiming to bolster the state’s educational infrastructure and research capabilities. The policy includes investing $153 million to develop research cells across universities and educational institutes in the state. Source: The Statesman; In detail: Press Release (in Hindi)

Water and Sanitation

Goa approves the creation of a dedicated Drinking Water Department (DWD). This new department will be responsible for ensuring a reliable water supply to the residents of Goa. The state’s Public Works Department will henceforth focus solely on maintaining roads and buildings, while the DWD will handle water supply. Source: Goemkarponn

Center – State Relations 

Union Government releases the Fifteenth Finance Commission Grants during financial year 2024–25 for rural local bodies in Punjab, Uttarakhand, Bihar, Haryana, Sikkim, and Chhattisgarh. Source: MSN; In detail: Press Release 1; Press Release 2

Any Other

Nothing critical to report this week.

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