States Weekly: February 5, 2025

Big News: Karnataka Electricity Regulatory Commission (KERC) issues the draft Karnataka Electricity Distribution Code, 2024; Madhya Pradesh launches the Madhya PradeshGlobal Capability Centres (GCC) Policy 2025; Assam approves the Assam Aerospace and Defence Manufacturing Policy, 2025; Karnataka approves the Karnataka Public Private Partnership (PPP) for Infrastructure Projects Policy, 2025; and more.

Health 

Nothing critical to report this week.

Climate Change and Energy

Gujarat Energy Development Agency (GEDA) issues detailed procedures, guidelines, and terms for establishing off-grid solar, wind, and wind-solar hybrid power projects with or without storage. The guidelines aim to help isolated entities meet renewable purchase obligation requirements through off-grid renewable solutions, encourage sustainable energy in areas without grid connectivity, and expand diverse energy technologies to enhance energy security and environmental sustainability. Source: Mercom; In detail: Guidelines

Karnataka Electricity Regulatory Commission (KERC) issues the draft Karnataka Electricity Distribution Code, 2024. The draft code aims to update the existing 2015 version in alignment with modern regulatory standards and technological advancements in the electricity sector. Source: Solar Quarter; In detail: Draft Karnataka Electricity Distribution Code (KEDC), 2024

Rajasthan Electricity Regulatory Commission (RERC) issues the RERC (Terms and Conditions for Determination of Tariff) Regulations, 2025. The updated draft includes changes in capital expenditure, auxiliary energy consumption, and availability calculations. Source: Solar Quarter; In detail: RERC (Terms and Conditions for Determination of Tariff) Regulations, 2025

Assam Electricity Regulatory Commission (AERC) introduces the draft Regulations for Grant of Connectivity to the Intra-State Transmission System (InSTS), 2025. The regulations aim to facilitate the integration of entities into the state transmission system effectively, reliably, and economically. They emphasize healthy competition in electricity generation and supply while ensuring system security. Source: Solar Quarter; In detail: AERC (Grant of Connectivity to the Intra State Transmission System) Regulations, 2025

Finance

Nothing critical to report this week.

Industrial Policy and Business Regulations  

Madhya Pradesh launches the Madhya PradeshGlobal Capability Centres (GCC) Policy 2025. The policy aims to promote sectors such as artificial intelligence, cybersecurity, and other emerging technologies through fiscal incentives. It also seeks to bolster research and development activities. Source: Economic Times; In detail: Global Capability Centres (GCC) Policy 2025

Assam approves the Assam Aerospace and Defence Manufacturing Policy, 2025 with the aim to promote indigenous defense manufacturing and development in the state. The policy offers financial incentives including tax exemptions for firms, and also focuses on skill development by creating technical institutes and training centers. Source: Assam Tribune; In detail: Cabinet Decisions

Kerala approves the Kerala Export Promotion Policy, 2025 aimed at making the state an export hub. The policy aims to support exporters in exploring new opportunities and expanding their global presence and drive economic growth. Source: New Indian Express; In detail: Cabinet decisions

Land Acquisition and Labor Regulations  

Nothing critical to report this week.

Infrastructure and Governance

Andhra Pradesh releases the WhatsApp Governance initiative, offering 161 services to citizens. The services aims to provide citizens easy access to government certificates such as the other backward class, economically weaker section, and income certificates. Source: The News Minute; In detail: Launch Event

Karnataka approves the Karnataka Public Private Partnership (PPP) for Infrastructure Projects Policy, 2025. The policy involves asset monetisation, and institutes dedicated PPP cells in departments. The PPP cells will formulate long-term strategies and improve the implementation of PPP projects. Source: The Hindu

Karnataka approves the withdrawal of the Karnataka Town and Country Planning (Amendment) Bill, 2024, which previously proposed the introduction of the premium floor area ratio (FAR). The move comes after the Governor returned the Bill, seeking clarifications on legal aspects, particularly its potential impact on transferable development rights (TDR) and urban planning norms. Source: Indian Express; In detail: Karnataka Town and Country Planning (Amendment) Bill, 2024

Rajasthan releases the Rajasthan Excise Policy, 2025-29. As per the policy, hotels will require only 10 rooms instead of 20 to obtain a bar license. Additionally, the licensing process has been simplified and applications can now be submitted online for auto-approval. Source: Niharika Times; In detail: Rajasthan Excise Policy 2025-29 (in Hindi)

Water and Sanitation

Karnataka approves the implementation of the World Bank-assisted Karnataka Water Security and Disaster Resilience Programme (KWSRDP) at an estimated cost of $576.12 million. Source: Deccan Herald; In detail: Project Information Document

Center – State Relations 

Nothing critical to report this week.

Any Other

Karnataka issues orders to implement the Supreme Court’s directive regarding a patient’s 
right to die with dignity becoming India’s second state, after Kerala, to implement this ruling. The orders directs the state health department to appoint medical experts to the secondary medical board to decide when life-sustaining treatment can be stopped for terminally ill patients. Source: New Indian Express; In detail: Government Order

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