States Weekly: March 5, 2025

Big News: Madhya Pradesh releases the Health Sector Investment Promotion Policy, 2025, the Semiconductor Policy, 2025, and the Pumped Hydro Storage Policy, 2025; Assam releases the Integrated Clean Energy Policy, 2025, the Startup & Innovation Policy, 2025, and the Aerospace and Defense Policy, 2025; Andhra Pradesh, Bihar, and Jharkhand release State Budgets for 2025-26; and more.
Health
Madhya Pradesh launches the Health Sector Investment Promotion Policy, 2025 with a focus on expanding healthcare infrastructure and attracting private sector participation. The policy provides fiscal incentives such as capital subsidies for setting up multi-specialty and super-specialty hospitals, particularly in underserved districts. It introduces fast-track approvals, land allotment support, and simplified regulatory processes to facilitate healthcare investments. Source: Hindustan Times; In detail: Madhya Pradesh Health Sector Investment Promotion Policy 2025
Gujarat passes the Gujarat Clinical Establishment (Registration and Regulation) (Amendment) Bill, 2025. The amendment extends the deadline for clinical establishments, including hospitals, to apply for provisional registration by six months. Source: Economic Times; In detail: Gujarat Clinical Establishment (Registration and Regulation) (Amendment) Bill, 2025
Tamil Nadu launches 1,000 “Mudhalvar Marundhagams” (Chief Minister’s Pharmacies) to reduce healthcare costs. The pharmacies will provide medicines with up to 75 percent discounts across the state. Source: Indian Express; In detail: Tamil Nadu Chief Minister’s Pharmacies Scheme Details
Jharkhand launches the State Employee Health Insurance Scheme. Under the scheme, state government employees will be able to avail cashless treatment up to $5,700 (₹5 lakh), and up to $11,400 (₹10 lakh) in case of serious diseases, in empanelled hospitals nationwide. Source: Avenue Mail; In detail: State Employee Health Insurance Scheme Details (in Hindi)
Climate Change and Energy
Madhya Pradesh releases the Pumped Hydro Storage (PHS) Project Scheme, 2025 to enhance renewable energy storage capacity and ensure grid stability. The scheme categorizes PHS projects into four development modes, including direct allotments to public sector entities, competitive bidding for private players, and self-identified off-stream projects. Key incentives include waiver of transmission charges, priority land allocation, and viability gap funding for large-scale projects. The policy supports India’s renewable energy goals by integrating hydro storage with solar and wind energy projects. Source: Hindustan Times; In detail: Madhya Pradesh Pump Hydro Storage Scheme 2025
Andhra Pradesh releases a government order for the implementation of the “PM Surya Ghar: Muft Bijli Yojana” (PM Solar Rooftop Scheme). The guidelines aim to facilitate the implementation of the scheme for 2 million scheduled caste, and scheduled tribe citizens. The implementation guidelines are aligned with the state’s “Jagjeevan Jyothi Yojana”, which aims to provide free electricity to select consumers. Source: The Hindu; In detail: Government Order
Bihar approves the construction of a 2.4 GW thermal power plant in the state with an estimated cost of $2.6 billion. The project is posited to be the largest private sector investment in the state, support employment, and make the state less reliant on other states for power. Source: Economic Times
Haryana Electricity Regulatory Commission (HERC) issues the HERC Green Energy Open Access Regulations, 2023 (1st Amendment Regulations, 2025) to simplify and clarify provisions for renewable energy consumers and generators. The amendment modifies the eligibility criteria for green energy open access. Initially, only consumers with a contracted demand of 100 kW or above were eligible but the amendment now allows multiple connections within the same electricity division to aggregate their load to meet the 100 kW threshold. Source: Solar Quarter; In detail: HERC Green Energy Open Access Regulations 2023 (1st Amendment Regulations, 2025)
Madhya Pradesh issues the Madhya Pradesh Renewable Energy Policy, 2025, targeting 50 percent of annual power consumption from renewable energy resources by 2030. The policy will be valid for five years and apply to all renewable energy projects of at least 500 kW. It will exclude decentralized renewable energy systems. Source: Mercom; In detail: Madhya Pradesh Renewable Energy Policy, 2025
Assam releases the Assam Integrated Clean Energy Policy, 2025 aimed at promoting renewable energy and grid integration in the state. The policy aims to achieve an additional 11.7 GW of renewable energy projects in the state by 2029-30. The policy aims to provide a framework for pumped storage power, green hydrogen, and renewable energy. Source: Sentinel Assam; In detail: Assam Integrated Clean Energy Policy, 2025
Goa introduces the Goa E-Waste Management Policy, 2024. This policy aims to establish a structured and sustainable framework for e-waste management across the state. The policy’s primary objectives include minimizing environmental impact, promoting recycling and reuse, and fostering public awareness about responsible e-waste disposal. Source: Digital Goa; In detail: Goa E-Waste Management Policy, 2024
Kerala approves the draft Guidelines on Development of Floating Solar Power Plants to set up solar projects in reservoirs, backwaters, freshwater bodies formed due to mining and quarrying, and land found unusable for agriculture. The guidelines aim to support the state’s objective of achieving 3 GW solar renewable energy capacity additions in the next two years. Source: Economic Times; In detail: Cabinet Decisions
Finance
Nothing critical to report this week.
Industrial Policy and Business Regulations
Madhya Pradesh unveils the Madhya PradeshSemiconductor Policy, 2025 to boost domestic chip manufacturing and attract global semiconductor investments. The policy offers financial incentives, infrastructure support, and fast-track clearances to semiconductor firms, aiming to position the state as a major electronics hub. Key measures include a capital subsidy for setting up fabrication units, tax benefits, and access to a dedicated semiconductor park with plug-and-play infrastructure. The policy targets the development of a skilled workforce through specialized training programs in collaboration with industry leaders. Source: Hindustan Times; In detail: Madhya Pradesh Semiconductor Policy, 2025
Andhra Pradesh releases an order to align public procurement norms and promote procurement from the Department for Promotion of Industry and Internal Trade recognised startups registered in the state. Under these changes, recognised startups can participate in government tenders for projects worth up to $57,155, without the need for prior experience requirement, earnest money deposits and turnover requirements. Source: Times of India; In detail: Government Order
Karnataka releases the Karnataka Tourism Policy, 2024-29 with an outlay of $154.3 million. The policy aims to attract $914.4 million in direct investments and generate employment opportunities to 150,000 people. Source: New Indian Express; In detail: Karnataka Tourism Policy, 2024-29
Assam approves the Textiles and Apparel Policy, 2025. The policy aims to create an investor-friendly environment with easy access to raw materials and manpower to support new investments in the sector. Source: Fibre2fashion; In detail: Cabinet Decisions (in Hindi)
Assam releases the Aerospace and Defense Manufacturing Policy, 2025. The policy aims at positioning the state as a leading hub for defense production and technology innovation. The policy focuses on aircraft production, defense equipment manufacturing, and maintenance, repair, and overhaul (MRO) services, catering to both domestic and international markets. Source: Hub network; In detail: Aerospace and Defense Manufacturing Policy, 2025
Assam releases the Assam Startup & Innovation Policy, 2025. The policy offers various financial incentives, including seed funding, grants, and tax benefits for both early-stage and scale-up start-ups across sectors like IT/ITeS, deep-tech, AI, agritech, and biotechnology. Source: India Today NE; In detail: Assam Startup & Innovation Policy, 2025
Punjab approves the State Excise Policy, 2025-26. The policy aims to increase the revenue from excise duties by $91.4 million over the previous year. Source: The Tribune; In detail: Punjab Excise Policy, 2025-26
Land Acquisition and Labor Regulations
Nothing critical to report this week.
Infrastructure and Governance
Andhra Pradesh presents the State Budget, 2025-26 with an outlay of $36.8 billion. The budget includes an estimated revenue expenditure of $28.7 billion and capital expenditure of $4.64 billion. Source: Indian Express; In detail: Andhra Pradesh Budget Speech., 2025-26 (in Telugu)
Bihar releases the State Budget, 2025-26 with an outlay of $36.2 billion. The budget focuses on women empowerment through several initiatives including the creation of dedicated vendor spaces for women, “pink buses” with female drivers, reserved for women, and 33 percent job reservation for women in the Bihar State Road Transportation Corporation. Source: The Week; In detail: Bihar Budget, 2025-26 (in Hindi)
Jharkhand tables the State Budget, 2025-26 with an outlay of $16.57 billion. The budget focuses on promoting tourism, healthcare, and education sectors. Source: The Week; In detail: Jharkhand Budget Speech, 2025-26
Gujarat releases the Gujarat Registration of Births and Deaths (Amendment) Rules, 2025 aimed at streamlining the registration processes and ensure uniformity in documentation. Source: Desh Gujarat; In detail: Gujarat Registration of Births and Deaths (Amendment) Rules, 2025
Rajasthan launches the “Shiksha Sanjeevani Yojana” which aims to benefit students enrolled in Class 1 to Class 5 in the state. Under this scheme, around 130,000 students studying in government schools in the Udaipur division will receive personal accident insurance coverage of up to $1,143. The insurance will also cover cases where a student's parent passes away due to an accident. Source: NDTV; In detail: Scheme Highlights X (Twitter) (in Hindi)
Water and Sanitation
Nothing critical to report this week.
Center – State Relations
Nothing critical to report this week.
Any Other
Nothing critical to report this week.