Welcome to the latest edition of States in Motion! States are driving a large share of India’s current policy and economic churn. This edition tracks decisions taken between 16–30 November 2025 that alter incentives, regulatory structures, and welfare delivery on the ground. From Odisha’s new minerals rules addressing ₹22,392 crore revenue losses (2015–2022) via drone surveillance and e-lotteries, to Rajasthan’s industrial land policy freezing reserve rates with up to 40% discounts for plots above 2 lakh sq m across 429 RIICO areas, to Karnataka’s IT policy targeting ₹11.5 lakh crore software exports by 2030, the updates map how state governments are repositioning themselves on questions of growth, labour, infrastructure, and technology. The newsletter also covers social-sector schemes, power-tariff and regulatory changes, and large investment proposals like Jharkhand’s ₹8,799 crore Viksit 2050 projects and Andhra Pradesh’s ₹99,000 crore data centre MoU that will shape medium-term trajectories of states such as Assam, Maharashtra, Chhattisgarh, and Tripura.
I. Reform Decisions:
A. Odisha
Odisha Minerals (Prevention Of Illegal Mining And Regulation Of Trading, Transportation And Storage) Rules, 2025
The Odisha Cabinet has approved the Odisha Minerals (Prevention of Illegal Mining and Regulation of Trading, Transportation and Storage) Rules, 2025 on 22nd November, 2025, replacing the outdated 2007 framework to strengthen controls against illegal mining activities.
The Rules address massive revenue losses of ₹ 22,392 crore (2015-2022) identified by CAG due to mineral undervaluation and over-extraction, introducing scientific sampling, drone surveillance, and e-lottery for minor minerals.
Objectives - The Rules are aligned with the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) the overhaul aims to create a transparent, efficient system for legitimate operators while curbing theft, smuggling, and unlawful trading/storage/transport.
Key Features -
Overhauls regulatory mechanisms for scientific stacking/sampling, accurate mineral grading/quantity assessment, and drone surveillance in mining areas to prevent theft/smuggling.
Aligns with MMDR Act, 1957, creating hassle-free environment for legitimate lessees while strengthening enforcement.
Introduces e-lottery system for minor mineral quarries (stones, sand), capping maximum rates, limiting lessees to 3 quarries/district and 5 statewide.
Addresses (Comptroller and Auditor General) (CAG)-identified issues like ore undervaluation, excess mining, and revenue leakage through tighter controls on possession, storage, trading, and movement.
Relevance -
The CAG Performance Audit recorded a revenue loss of ₹ 22,392.51 crore in Odisha during 2015–22 arising from systemic undervaluation, grade inconsistencies, and unverified dispatch quantities. The Rules address these deficiencies by instituting scientific stacking, standardised sampling, and precise grade-quantity assessment to eliminate discretion and ensure accurate royalty determination.
Further, Odisha’s iron ore output of 169 million tonnes in 2023–24, coupled with CAG-documented occurrences of excess extraction due to infrequent inspections and outdated monitoring tools, necessitates the shift to drone-based surveillance, GPS-linked tracking, and digital excavation records introduced under the new framework to establish continuous, verifiable oversight of mining operations.
Approval Of Amendments To Survey And Settlement Rules
The Odisha Government, on 12th November 2025, approved key amendments to the Survey and Settlement Rules, 1962, aimed at simplifying and expediting the correction and updating of old land records, including Record of Rights (RoR) and title deeds.
Key Features -
Empowers tehsildars to directly correct, update, and settle RoR in the buyer’s name for land purchased before settlement operations, removing the previous need for buyers to appeal to the Board of Revenue or revisional courts.
Aims to reduce long delays and backlog in land record correction cases, saving time and travel costs for citizens who previously had to approach distant authorities in Cuttack.
Includes inauguration of new sub-registrar offices in 44 tehsils across 13 districts to enable local registration services closer to residents, extending land registration facilities to 261 of 317 tehsils.
Expected to enhance transparency, accessibility, and efficiency in land ownership updates, especially benefiting rural and semi-urban populations.
Relevance -
By empowering the Tehsildar to directly correct the RoR for legally purchased land, the state is transforming disputed or procedurally flawed assets into secure, legal titles. This reduces the risk of land transactions and improves the land’s value as collateral for formal bank loans (Kisan Credit Cards, crop loans). This is the central mechanism for advancing rural financial inclusion and enabling greater capital flow into agricultural investment.
Citizens often had to approach the Board of Revenue or revisional courts to get changes reflected in land records, leading to long delays, repeated travel, and high legal expenses. With the new provision allowing direct updation of land records based on registered transfer deeds, people can now complete the process locally, significantly reducing time, cost, and procedural burden.
The transfer of thousands of RoR appeals from the overburdened judiciary (Board of Revenue/Courts) to the executive branch (Tehsildar) reduces the enormous fiscal burden of prolonged land litigation. This frees up judicial resources for serious criminal and civil matters, thereby improving the overall efficiency of the state’s justice system.
B. Telangana
Gig And Platform Workers (Registration, Social Security And Welfare) Bill, 2025
On 18th November, 2025 the Telangana Cabinet approved the Telangana Gig and Platform Workers (Registration, Social Security and Welfare) Bill, 2025.
The bill aims to extend a structured social security and welfare framework to gig and platform workers in the state, ensuring job security, fair wages, welfare support, and transparency for a previously unprotected workforce.
Target Beneficiaries -
Gig and platform workers across sectors such as food delivery, ride sharing, logistics, home services, and other app based services.
Workers lacking formal employment status, those engaged through digital platforms or under piece rate or contract based arrangements, will now get legal recognition and protections.
Salient Features -
Mandatory registration of every gig or platform worker with a unique ID; aggregators also must register within 45 days and share worker data within 60 days.
Establishment of a 20 member Social Security and Welfare Board to oversee welfare schemes, fund management and grievance redressal.
Creation of a dedicated Welfare Fund, financed by a 1–2% fee on aggregator payouts, state grants, CSR donations and administrative costs capped to ensure fiscal discipline.
Minimum wage guarantee whether hourly or piece rate along with fair contract terms: 14 day notice for any contract changes and 7 day notice for terminations (except in cases of misconduct).
A Grievance Redressal Officer shall be appointed by the state Government. Platforms with ≥ 100 workers must have internal dispute committees and appeals can be escalated to Government authorities.
Relevance -
The Bill is expected to bring approximately 4.2 lakh gig and platform workers in Telangana under a formal social-security framework for the first time. It strengthens labour protections by giving legal recognition and structured welfare coverage to gig and platform workers who previously operated without formal safeguards.
Mandating a 14-day notice period for contract changes and a 7-day notice for termination (except in cases of misconduct) introduces basic due-process protections for gig workers. This helps reduce disputes arising from abrupt delisting and acknowledges the time and investment workers put into platform engagement. The Bill also establishes a contributory Welfare Fund financed through a 1–2% levy on aggregator payouts, creating a steady, industry-linked revenue stream that limits reliance on the state budget.
New Rooftop Solar Regulation, 2025
The Telangana Electricity Regulatory Commission (TERC), on 26th November 2025, notified the Rooftop Solar PV Grid Interactive Systems Regulation, 2025.
The aim of the regulations is to scale up rooftop solar deployment by providing flexible metering choices, increasing system capacity limits, removing cost barriers, and simplifying approval and interconnection processes for consumers and prosumers.
Key Features -
Offers Net Metering, Gross Metering, Group Net Metering (GNM), and Virtual Net Metering (VNM), enabling households, housing societies, institutions, and commercial or industrial users to select the model that best fits their consumption and infrastructure.
Allows installations up to 500 kWp under Net Metering and up to 1 MWp under Gross Metering, opening the scheme to large consumers.
Prosumers are exempt from banking charges, wheeling charges, cross subsidy surcharges, and additional surcharges, making rooftop solar more financially attractive.
Applications handled on a first come, first served basis with defined timelines, nodal officers, and standardised agreements to reduce procedural delays.
Compliance with CEA technical norms, mandatory anti islanding protection, and CEIG approval for systems above 56 kWp to ensure safe grid integration.
Relevance -
Telangana’s existing rooftop-solar adoption has been limited the cumulative rooftop-solar capacity is around 418.81 MW as of 2024, while the state has a very high solar potential estimated at 20.41 GW. The new regulations enable the state to utilise more of this under-used potential by permitting significantly larger system sizes, offering multiple metering models, removing banking and surcharge costs for consumers, and standardising approvals.
The regulations would reduce cost barriers through key charge exemptions, which shorten payback periods and improve financial viability. It also boosts private sector participation by allowing third party developers to install and operate rooftop systems, increasing investment and deployment capacity.
C. Madhya Pradesh
Draft Fire Safety Act, 2025
The Urban Administration and Housing Department of Madhya Pradesh has finalised the draft of the Madhya Pradesh Fire Safety Act, 2025 (the draft Act).
It aims to improve fire safety by making fire-resistant fabric mandatory for pandals and requiring fire safety certificates for buildings over 15 metres in height.
It modernises fire regulations to protect lives and property in growing urban areas and public gatherings.
Key Features -
Mandatory use of fire-resistant fabric for all pandals and temporary enclosures used during events, aiming to reduce fire hazards in large gatherings.
Requirement of fire safety certificates for all buildings exceeding 15 metres in height or having built-up area >500 square metres before occupancy approval, with periodic renewals.
Establishment of a consolidated Fire and Emergency Service for the state with powers to inspect, enforce, and penalise violations.
Introduction of an online portal to streamline application, approval, and tracking of fire safety certificates.
Public Investment Planned - Expected investments in expanding fire service infrastructure, including new stations, vehicles, equipment, and training, though exact budget figures are not stated.
Central Scheme Alignment -
Aligns with the Central Model Bill to Provide for the Maintenance of Fire and Emergency Service for the state, 2019
Similar Initiatives In Other States - Several states, including Maharashtra and Delhi, have updated their fire-safety laws to mandate high-rise certifications and regulate temporary structures, aligning closely with NBC Part 4. Madhya Pradesh’s draft Fire Safety Act mirrors this national shift toward uniform, codified fire-safety standards and closes regulatory gaps seen across states.
Relevance -
Madhya Pradesh has recorded the highest number of fire incidents in the country, accounting for roughly 23% of all cases reported nationally during 2014–2022. The draft Act responds to these risks by introducing mandatory fire-resistant materials for pandals, compulsory certification for high-rise and large buildings, and a unified Fire and Emergency Service with inspection and penalty powers, thereby creating uniform standards and strengthened compliance mechanisms aimed at reducing preventable fire incidents across the state.
The draft Act’s dual focus, mandatory certification for buildings above 15 metres and fire-resistant fabric for pandals, addresses both permanent high-rise infrastructure and temporary assembly structures, two categories where enforcement and clarity have been weak.
Non-standardised fire safety norms across different parts of a state also lead to non-standardised command structures, which inhibit resource mobilisation and uniform training
D. Haryana
Amendment To Haryana Shops And Commercial Establishments Act, 1958
The Governor of Haryana has promulgated the Haryana Shops and Commercial Establishments (Amendment) Ordinance, 2025 on 12th November, 2025. The Amendment modernises the regulatory framework governing shops and commercial businesses in the state.
It aims to balance ease of doing business with improved worker protections and is a part of Haryana’s broader push towards labour law modernisation and flexibility.
It will be tabled in the upcoming winter session of the state assembly.
Key Features -
It introduces extended working hours and significantly increased overtime limits to enhance operational flexibility. The ordinance also simplifies compliance through digital registration, mandates clearer employee documentation, and strengthens enforcement with rationalised penalties.
Extends daily business hours from 9 to 10 hours, allowing employers more operational flexibility.
Raises quarterly overtime limit from 50 hours to 156 hours, supporting demand-driven extended service times.
Mandates issuance of appointment letters and identity cards for all workers, enhancing employee documentation and rights.
Introduces a two-tier regulatory framework based on establishment size (up to 20 employees vs. more than 20 employees) with all registrations taking place online.
Strengthens compliance with penalties of ₹ 3,000 to ₹ 10,000 for first-time violations and daily fines of ₹ 500 for ongoing contraventions.
Employees must work six continuous hours before a rest break, increased from five hours previously.
Relevance -
Haryana’s earlier cap of 9 working hours per day and low quarterly overtime limit of 50 hours severely restricted operational flexibility, especially for retail, logistics, e-commerce, and services whose highest demand period is time-variable.
Haryana’s service sector contributesover 51.2% to the state GSDP, yet businesses faced difficulty in meeting high-demand during festive-season under rigid time boundations. By extending daily work hours to 10 and tripling the overtime limit to 156 hours per quarter, the Amendment directly addresses this productivity constraint, allowing businesses to operate longer without violating labour norms while still compensating workers for overtime.
The amendments aim to boost Total Factor Productivity (TFP) by extending the maximum daily workday from 9 to 10 hours (maintaining a 48-hour weekly cap) and tripling quarterly overtime limits from 50 to 156 hours. This allows businesses to optimize fixed capital utilisation and manage peak demand cycles more efficiently.
For workers, especially in Haryana’s large tertiary sector (42.7% of the workforce), the Amendment strengthens rights and accountability. It mandates appointment letters and identity cards for all employees, which protects vulnerable workers against wage theft, exploitation, and disputes by providing proof of employment.
E. Punjab
Mandate To Phase Out Mercury-Based Medical Equipments
The Punjab Health Systems Corporation (PHSC) on 21st November, 2025 mandated the complete phase-out of all mercury-based medical equipment in both Government and private healthcare facilities across the state.
This directive bans the use and procurement of mercury thermometers, sphygmomanometers (blood pressure instruments), and dental amalgam fillings.
The move aims to protect public health and the environment by eliminating mercury exposure risks linked to these devices, replacing them with safer digital and aneroid alternatives.
Key Features -
Ban covers mercury thermometers, sphygmomanometers, and dental amalgam used for fillings.
Healthcare facilities must replace mercury devices with digital thermometers, aneroid BP monitors, and non-mercury dental materials.
Facilities must submit an inventory of existing mercury equipment within 30 days and label all mercury waste as “Hazardous: Mercury waste – Do Not Handle” until final disposal.
Strict enforcement under Biomedical Waste Management Rules, 2016 for violations.
Relevance -
Mercury thermometers and sphygmomanometers are the largest source of mercury spills inside healthcare facilities. The monthly average rate of breakage of mercury-based glass thermometers in a 300-bedded hospital is around 70 and each broken thermometer can release up to 0.5-3 g of elemental mercury, which is enough to contaminate indoor air above safe limits. The ban directly solves this by eliminating mercury-containing thermometers and BP instruments, replacing them with digital and aneroid devices carrying zero spill risk.
This policy acts as an economic stimulus for the domestic manufacturing sector of these green medical devices. However, the ban on mercury-based medical equipment comes relatively late compared to other Indian states like Kerala, Tamil Nadu, Maharashtra, and Delhi, which have already transitioned to mercury-free healthcare systems.
F. Andhra Pradesh
Amendment To Assigned Lands (Prohibition Of Transfers) Act, 1977
The Andhra Pradesh Cabinet on 12th November, 2025 has approved amendments to the Assigned Lands (Prohibition of Transfers) Act, 1977, permitting farmers to lease their “assigned lands” exclusively to renewable energy firms.
This aims to provide poor and land dependent farmers with a stable, assured income stream by allowing them to lease out their assigned land instead of relying solely on uncertain agricultural returns.
Key Provisions -
The state supports leasing via New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) or new rural board and the minimum rent is fixed between ₹ 30,000 - ₹ 40,000 per acre per year with 5 % escalation every 2 years.
The companies leasing the land must employ at least one unemployed member from each assignee family.
The policy identifies pre-determined “green-energy zones,” and only assigned lands in these zones are eligible for such leases.
Relevance -
Andhra Pradesh is positioning itself as a green energy hub by signing MoUs for utility-scale renewable projects, but these GW-scale investments face challenges securing large, contiguous land parcels. The state is addressing this by permitting the leasing of assigned lands (under the new amendment) to developers, creating a predictable land pipeline, enabling faster execution, and providing steady lease income to farmers.
Total assigned lands in the state is 36.36 lakh acres approximately out of which 13.62 lakh acres are eligible for freehold status, while 9.93 lakh acres have already been converted. Under the new policy, about 26.43 lakh acres can be leased exclusively to the Renewable Energy companies.
The shift to long-term leasing for non-saleable assigned lands bypasses expensive land acquisition laws, avoiding massive capital costs and securing land for Renewable Energy use at a fixed, subsidised rate (₹ 30,000–₹ 40,000 per acre, with 5% escalation) to accelerate the renewable energy targets.
By formalising a transparent leasing mechanism, the state reduces the risk of informal land transactions and safeguards the rights of assignees while still enabling strategic land use for public interest infrastructure.
By permitting assigned land to be leased to renewable-energy companies, the state is turning otherwise non-tradable assigned land into an income-generating asset without permanently losing ownership. This allows poor, land-dependent families to earn a steady return of ₹ 30,000–₹ 40,000 per acre per year while supporting the creation of a land pipeline for large-scale renewable projects in designated green-energy zones.
G. Assam
Assam District Land Tribunal Bill, 2025
The Assam Legislative Assembly has passed the Assam District Land Tribunal Bill, 2025 on 29th November, 2025 to create a dedicated, judicial grade mechanism that rapidly adjudicates land encroachment cases in notified tribal belts and blocks.
Salient Features -
District Land Tribunals will be set up across the state to hear tribal land encroachment cases.
The Bill proposes to repeal Section 169 of the Assam Land and Revenue Regulation, 1886, with cases going directly to the tribunal, bypassing district administration, ensuring neutrality and faster processing.
Each tribunal will be headed by a retired district judge, with status equivalent to a judicial court.
Cases are targeted to be resolved within 90 days, with appeals allowed only to the Gauhati High Court.
The reform is based on the accepted recommendations of the Biplab Sharma Committee under Clause 6 of the Assam Accord, 1985.
Similar Legislations In Other States -
Tamil Nadu – Tamil Nadu Land Reforms Act, 1961, establishes Land Tribunals to decide cases related to land ceilings, surplus land, and redistribution.
Bihar – Bihar Land Tribunal Act, 2009 establishes a state level tribunal system that adjudicates land related disputes to reduce the burden on civil courts and accelerate the resolution process.
Relevance -
In Assam, where tribal belts and blocks cover roughly 85.80 lakh bigha in total, and 5 lakh bigha is still under encroachment, the Bill enhances legal safeguards for protected and tribal communities, reducing misuse or arbitrary disposals of tribal-belt lands. This is done by vesting adjudicatory power in independent tribunals with civil-court powers, instead of executive-branch revenue officials.
The Bill implements the land and identity safeguards promised under Clause six, fulfilling a long-standing expectation of tribal and indigenous communities and reinforcing institutional guarantees for their land rights.
Clear titles are critical for rural financial inclusion, as they enable tribal communities to use their land as collateral for formal bank loans (Kisan Credit Cards, agricultural expansion), which has been restricted by the existing state of land records.
Land under dispute or encroachment is essentially “dead capital” as it cannot be sold, leased, or productively developed. By fast-tracking the resolution of the encroachment issue (5 lakh bigha), the Government can either restore the land to the original tribal owners (who can then cultivate/invest) or use the recovered land for public infrastructure, thereby unlocking its economic potential.
The Bill reduces administrative overload under the existing land-revenue legal framework. In the current framework revenue officials, burdened with multiple administrative responsibilities, act as appellate authorities.
H. Karnataka
The Draft Karnataka Rights Of Persons With Disabilities In Employment And Education Bill, 2025
The Karnataka Government has released the draft Karnataka Rights of Persons with Disabilities in Employment and Education Bill, 2025 to strengthen education and employment opportunities for persons with disabilities (PwDs).
Salient Features -
The draft mandates 4% reservation in Government jobs and 5% reservation in higher education institutions, bringing Karnataka in full compliance with the Rights of People with Disabilities (RPwD) Act, 2016.
District level medical boards will oversee disability identification and certification to avoid delays and inconsistencies in issuing disability certificates, ensuring smoother access to benefits.
Schools, colleges, and workplaces will be required to make physical and digital infrastructure, accessible ramps, assistive technology, signage, accessible toilets, and inclusive learning materials.
Universities and colleges must submit annual compliance reports on reservation implementation and accessibility improvements.
A state Commissioner for Persons with Disabilities will serve as the nodal authority for complaints, with powers to inspect institutions and enforce compliance.
The law also provides for stringent penalties (from ₹ 10,000 to ₹ 5 lakh) for non-compliance paired with procurement incentives and certification for compliant organisations.
Relevance -
Once the draft is implemented, Karnataka will be the first state to mandate a quota in private sector jobs (5%) and a substantial quota in all educational courses (10%), affecting an estimated 20 lakh PwDs.
The mandate of a 5% reservation in private establishments (with 20 or more employees) is the policy’s most significant economic intervention. This tackles the severe economic marginalisation of PwDs (only 34 lakh of 1.3 crore employable PwDs are in formal employment nationally). By converting this untapped segment into a productive workforce, the state is making a long-term investment that could add to the state’s increased productivity and tax revenue.
Regulated Clinical Procedures In Spas And Salons Under KPME Act
The Karnataka Government, on 18th November, 2025, undertook steps to regulate spas, salons, and wellness centres offering clinical or medical grade cosmetic procedures by bringing them under the Karnataka Private Medical Establishments (KPME) Act, 2007.
This aims to curb unqualified and unsafe medical or cosmetic practices in spas and salons, ensure consumer safety, and bring all establishments offering clinical procedures under a formal regulatory and medical standards framework.
Salient Features -
Regulation also covers allied health services, including audiology, optometry, physiotherapy, radiography, podiatry, sonography, and clinical psychology.
The Health Department will first focus on registering existing service providers, followed by targeted enforcement against non compliant or illegally operating establishments.
Ensures that procedures requiring medical expertise are supervised by trained and licensed professionals, not beauty technicians or unqualified staff.
Relevance -
Karnataka has about 400 quack skincare centres offering clinical or medical grade cosmetic procedures. Once registered under KPME, establishments become answerable to regulatory inspections, patient rights provisions, and audit mechanisms giving consumers a formal channel for complaints and dispute resolution.
As clinical procedures become regulated, consumers can make safer and more informed choices, increasing confidence in legitimate providers.
The regulation creates an immediate demand for licensed medical professionals (MBBS, specialised Allied Health professionals like audiologists and clinical psychologists) to supervise or perform procedures. This shifts job creation from the informal beauty sector to the formal healthcare sector, improving the overall skill profile and wage structure of the wellness industry workforce.
Bringing the above centres under a recognised Act helps integrate parts of the wellness and cosmetic industry into the formal economy, improving data availability and enabling better policymaking. It will also bring these centres into the formal tax bracket, ensuring greater transparency and regulatory compliance
I. Himachal Pradesh
Amendment To Himachal Pradesh Lease Rules, 2025
The Himachal Pradesh Government on 19th November, 2025 amended the Land Lease Rules, 2013 through the Himachal Pradesh Lease (Amendment) Rules, 2025, granting a special exemption to the Housing and Urban Development Authority (HIMUDA) to lease Government land for up to 80 years.
Key Features -
The amendment permits HIMUDA to seek land leases up to 80 years, a special exception beyond the general 40-year lease limit.
The general lease limit of 40 years remains for most other sectors, including hydropower, cement, mining, and industrial projects, with possible lease extensions for specific cases.
The Amendment addresses challenges faced by housing projects requiring longer planning and completion periods without compromising land conservation goals
Relevance -
The Amendment addresses the longer timelines required for housing projects, while maintaining the general 40-year cap for other sectors like industry and hydropower. The change responds to practical challenges faced by HIMUDA in planning and executing residential developments, with public objections invited within one month.
Himachal Pradesh’s forest cover has steadily increased, rising from 14,679 sq km in the 2008–09 assessment to 15,443 sq km in the latest officially published dataset. This long-term expansion of recorded forest area, representing an increase of more than 750 sq km, indicates that the availability of non-forest and developable land has become progressively more limited.
In the above context, the decision to allow HIMUDA to obtain 80-year land leases is significant, as longer tenures support the optimal use of scarce developable land by enabling the planning and completion of long-horizon residential projects rather than fragmented or short-term development cycles.
II. Policy Level Announcements:
A. Karnataka
Information Technology Policy, 2025-2030
The Karnataka Government has launched the Information Technology (IT) Policy, 2025-2030 policy on 13th November, 2025.
Karnataka launched India’s first IT policy in 1997.This updated policy intends to capture emerging technologies like Artificial Intelligence (AI), quantum computing, blockchain, Green IT, and cybersecurity.
Key Provisions -
A fellowship for “Women in Global Tech” has been announced which will help mid-career women to re-enter Tech and Research and Development (R&D) roles.
The policy seeks to increase the contribution of the IT sector to Karnataka’s GSDP and significantly enhance software exports by 2030.
Major focus on developing technology and innovation clusters in Mysuru, Mangaluru, Hubballi Dharwad Belagavi, Tumakuru, Kalaburagi and Shivamogga, as part of the Government’s Beyond Bengaluru initiative.
Relevance -
This policy will seamlessly integrate AI with the state’s already strong IT sector, making Karnataka a mobile native digital destination while unlocking new economic opportunities, fostering innovation and improving public service delivery.
This initiative aims to increase the IT sector’s contribution to Gross State Value Added (GSVA) from 26% to 36% by increasing software exports. Software exports from the state are targeted to increase from approximately ₹ 4.09 lakh crore to ₹ 11.5 lakh crore by 2030.
With strong support for R&D, patents, training, and faculty development, the policy nurtures local innovation ecosystems and expands Karnataka’s overall tech talent pipeline.
The focus on Green IT and Environmental, Social and Governance (ESG) compliance acts as a calculated economic move to attract Environmentally Conscious Foreign Direct Investment (FDI). Fiscal incentives for green certification and renewable energy usage lower the operational cost for these global companies, giving the state a competitive advantage over non-compliant regions.
Things To Watch Out For -
The policy may give more focus to GCCs, both foreign and Indian, through higher subsidies and infrastructure support. This could limit opportunities for local startups, reduce space for indigenous intellectual property (IP) development, and draw local talent mainly towards foreign companies.
While the policy proposes major centres and benefits, it does not clearly outline execution plans, realistic funding levels, or strong mechanisms to support real innovation. This may create challenges for Karnataka’s tech ecosystem in the long run.
Space Technology Policy, 2025-2030
The Karnataka Government has launched the Space Technology Policy 2025-2030 on 13th November, 2025, aiming to leverage the state’s strengths in aerospace and research to accelerate the growth of the space economy.
Targets -
Capture 50% of India’s market by 2034.
Achieve a 5% share of the global market by 2034.
$ 22 billion (approximately ₹ 2200 crores) in market share in India by 2033.
Skill training of 50,000 young professionals, including 15,000 women, in partnership with ISRO, IN-SPACe, academia, and industry.
Key Strategic Pillars -
Skill Development Initiatives - Building a specialised talent pool for the space sector through training, capacity building programs, and academic partnerships.
Investment Incentives - Offering financial support, incentives, and enabling frameworks to attract startups and private players.
Infrastructure Creation - Establishing testing facilities, innovation hubs, space parks, and shared Research and Development infrastructure.
Innovation And Facilitation - Supporting research, prototyping, technology development, and easing regulatory processes.
Adoption And Awareness - Promoting wider industry and academic adoption of space technologies and spreading awareness through outreach and collaborations
Relevance -
The policy aims to catalyse industrial clusters by offering affordable access to testing, design, and integration centres. It also supports 500 Karnataka startups and MSMEs with grants and a Centre of Excellence to enable end-to-end space tech capabilities, including manufacturing, testing, launching, and operating 50 satellites from the state.
Though Karnataka hosts 30% of India’s spacetech startups, growth was limited by the lack of a unified state framework for incentives, testing, and regulation. The new policy addresses this by creating an integrated state ecosystem with consolidated incentives, dedicated testing/design infrastructure, and streamlined single-window clearances to enable end-to-end spacetech operations.
Many startups face critical hurdles due to the lack of accessible and affordable testing facilities. The policy addresses this by establishing dedicated space parks equipped with shared environmental testing, qualification, and integration infrastructure, and by providing subsidised access and streamlined approvals to ensure that Karnataka-based startups can undertake end-to-end testing and validation within the state.
The new Space Technology Cell serves as a dedicated state-level interface with ISRO and IN-SPACe, enabling Karnataka-based startups to secure faster approvals, facility access, testing slots, and certifications. This coordination reduces regulatory friction and compliance delays. Coupled with state financial incentives, it creates an integrated ecosystem that supports R&D, prototyping, and commercialisation.
The Startup Policy, 2025-2030
The Karnataka Government has launched the Startup Policy, 2025-2030 on 13th November, 2025.
The policy aims to position the state as a global innovation hub, fostering a vibrant, supportive ecosystem that nurtures startups throughout their lifecycle.
Targets -
Karnataka aims to nurture 25000+ startups across sectors.
The policy provides targeted support to 2,000 women-led startups.
It prioritises regional inclusion by supporting 3,000 startups from Tier-2 and Tier-3 cities.
Budget Outlay- The Startup Policy carries an outlay of ₹ 518 crore over five years.
Essential Pillars -
Funding And Grants - Provides early stage startups with essential financial support through grants, funding, and subsidies to drive innovation and growth.
Incubation And Infrastructure - Builds state of the art incubation centres, CoEs, and Research and Development hubs to give startups access to advanced resources, technology, and industry partnerships.
Mentoring And Skill Development - Strengthens entrepreneurship through specialised training, certifications, and mentorship linked support to develop skilled startup talent.
Market Access And Expansion - Enables startups to scale through global partnerships, procurement incentives, and enhanced access to wider domestic and international markets.
International Collaboration And Access - Facilitates cross-border partnerships, global ecosystem exposure, and overseas market entry to boost competitiveness and attract foreign investment.
Inclusion And Sustainability - Promotes inclusive, impact-driven entrepreneurship through funding for women-led, rural, and grassroots startups leveraging innovative technologies.
Regulatory Facilitation - Streamlines startup compliance via simplified regulations, single window clearances, and proactive coordination with authorities to ease business growth.
Relevance -
Karnataka already hosts 16,335 DPIIT-recognised startups, placing it among India’s leading startup hubs and providing a strong baseline for the 2025–2030 policy. The policy is expected to deepen this ecosystem by expanding regional startup activity, lowering early-stage barriers, and strengthening support for high-value innovation.
The policy’s patent and market support lines directly lower quantifiable cost barriers (patent filing, international marketing), improving the odds of tech commercialisation.
By shifting fiscal and institutional support towards deep-tech domains such as AI, blockchain, quantum and SpaceTech, the state aligns its innovation push with high-value Intellectual Property (IP) -generating sectors that have historically formed a small share of Karnataka’s start-up pipeline.
The explicit target of supporting 3,000 startups from Tier-2 and Tier-3 cities is a crucial mechanism for decentralisation. It aims to leverage the lower cost of living in cities like Mysuru (which remains 30-50% cheaper than Bengaluru) to create new, stable innovation clusters, thereby de-risking the economy from over-reliance on the Bengaluru hub.
New Iron Ore Handling Policy For Non-Major Ports, 2025
On 27th November, 2025, the Karnataka Cabinet approved the Karnataka Non‑Major Ports Iron Ore Handling Policy, 2025.
This policy aims to restart the import and export of iron ore from Karnataka’s non-major ports after a long halt, by providing a clear regulatory framework that ensures handling, transportation, and export of iron ore are conducted legally, transparently, and in compliance with applicable norms.
Key Provisions -
The policy covers all aspects of export, import, and iron-ore handling at the 13 non-major ports along Karnataka’s ~343.3 km coastline.
It introduces a series of charges and fees to regulate operations and generate state revenue like, registration fees, licence fees for land allotment, wharfage charges, Minimum Guarantee Throughout (MGT) deposits, security deposits, penalties, and a recurring “pollution mitigation, safety and supervision fee” of ₹ 13 per tonne of cargo.
Eligibility Criteria -
Valid Directorate General of Foreign Trade (DGFT) registration or Importer-Exporter (IE) Code.
No pending dues with the concerned port.
Necessary customs authorisations will be eligible.
Similar Initiatives In Other States -
Odisha - Odisha has a Long-Term Linkage (LTL) Policy, focusing on securing multi year iron-ore supply to domestic industries through Odisha Mining Corporation (OMC), prioritising stable domestic off-take over port level export handling frameworks.
Relevance -
Karnataka contributes roughly 15% of India’s iron-ore output, enabling coastal export through non-major ports offers a significant leverage to monetise a large share of domestic production.
Non-major ports are becoming nationally significant, handling 45% of India’s total port cargo (650.96 Metric Tonnes in 2022–23), making Karnataka’s dedicated iron-ore handling policy aligned with the broader national shift toward strengthening state-controlled ports.
A report by NITI report highlights persistent infrastructure and regulatory bottlenecks in non-major ports, especially for bulk cargo, underscoring the need for state-level policy frameworks like Karnataka’s to streamline operations, ensure compliance, and improve cargo evacuation efficiency.
B. Jharkhand
Viksit Jharkhand 2050
The Jharkhand Government has unveiled a major development initiative comprising projects worth ₹ 8,799 crore on 15th November, 2025. This ambitious investment drive supports the long-term “Viksit Jharkhand 2050” vision, which aims to bridge infrastructure gaps and accelerate socio-economic growth across the state’s districts.
Key Features -
₹ 4,475 crore dedicated to foundation-stone projects in water resources, urban development, roads, health, and education.
₹ 4,324 crore earmarked for roads, rural development, energy, and higher education, reflecting a balanced approach to infrastructure and human capital development.
Emphasis on women-centric welfare schemes, with nearly half the state budget directed toward supporting women’s economic participation, safety, financial security, and social inclusion.
Holistic development strategy integrating physical infrastructure improvements with enhancements in human-resource capacities, education, and public service delivery.
Public Investment Planned - ₹ 8,799 crore disbursed through various sectoral development projects in the 2025–26 budgetary cycle.
Central Initiative Alignment - Aligns with the goal of achieving Viksit Bharat@2047.
Relevance -
Jharkhand ranks among India’s lowest on the Human Development Index (HDI), with an HDI of approximately 0.639 in 2023, reflecting significant gaps in health, education, and income compared to the national average. The ₹8,799-crore “Viksit Jharkhand 2050” projects can boost HDI by expanding infrastructure, improving public services, and strengthening economic opportunities.
Over 42% of the population lives below the poverty line, making it one of the poorest states in India that urgently requires comprehensive socio-economic development. By improving access to health services, education, infrastructure, and employment-linked projects, the initiative can directly ease multidimensional poverty for vulnerable households.
The large-scale investment in construction (roads, urban development) will have a strong, immediate consumption multiplier effect at the grassroots level, stimulating demand for materials and local labour. The investment in Higher Education and Energy is crucial for long-term supply-side growth, providing the skilled human capital and power needed for industrialisation.
The Viksit Jharkhand 2050 initiative aligns with parallel long-term state visions such as Viksit Maharashtra 2047 and Viksit Rajasthan 2047, signalling a broader nationwide shift toward future-ready, growth-oriented development planning.
C. Assam
Draft Space Technology Policy, 2025
On 28th November, 2025, Assam’s Government unveiled a draft “space technology policy,” under which the state plans to launch its own satellite called the ASSAMSAT to support agriculture, flood management and other key administrative tasks.
The aim of this policy is to harness satellite data and space technology tools for critical state functions such as agricultural planning, flood forecasting and management, environmental monitoring, urban and infrastructure planning, land use mapping, etc.
Key Features -
Proposal to launch a dedicated state owned satellite (tentatively “state satellite”) for Assam in collaboration with ISRO, IN-SPACe and NESAC.
The Government departments will be trained to use space data for agricultural advice, environmental monitoring and citizen service.
Establishment of data infrastructure in ground stations and data hubs to enable timely access to satellite derived data for different departments.
Relevance -
About 39.6% of Assam’s land area is flood prone, significantly higher than the national average and the state reportedly suffers an average annual economic loss due to floods in the tune of ₹ 200 crore. A dedicated state satellite will enable real time flood forecasting, high precision inundation mapping, early warning alerts, soil moisture and crop risk monitoring.
This policy allows Assam to shift from reactive disaster response to proactive, predictive, data driven mitigation significantly reducing damage, losses, and human impact.
Even though ISRO provides national level agricultural data, a state owned Assam satellite would deliver more frequent, high resolution, Assam specific farm insights improving crop health and soil moisture monitoring. A recent study in Kandi Mandal, Telangana, using ISRO linked satellites, Landsat-8 and Sentinel-2, showed how high frequency imagery can accurately track paddy crop health across seasons.
Management, Repair And Overhaul Policy, 2025
The Assam Cabinet on 24th November, 2025 has approved the Management, Repair and Overhaul (MRO) Policy 2025 to develop the state as a major aviation-servicing hub in the Northeast.
Key Features -
The state will facilitate the establishment of world-class MRO units for civil and defence aircraft, targeting major operations at strategic aviation nodes.
MRO operators will be eligible for capital subsidies, land-lease support, electricity-duty exemptions, and interest subsidies to reduce upfront and operational costs.
The policy allows support for aviation-related skill centres promoted by MRO operators, enabling creation of a trained local workforce.
The clearances will be routed through a single-window mechanism, with time-bound approvals to improve ease of setting up large MRO operations.
The policy aligns Assam’s aviation sector growth with regional civil aviation expansion and defence-logistics needs.
Relevance -
India’s MRO market was valued at $ 3.77 billion (₹ 3.37 thousand crore approximately) for 2024 and is projected to grow to $ 6.87 billion (₹ 6.14 thousand crore approximately) by 2033. The policy targets an industry with stable long-term demand, allowing Assam to move into an advanced manufacturing–services segment that the state has not traditionally participated in.
Historically India has outsourced a sizable share of MRO work abroad, with imports of MRO services reported at $ 1.26 billion (₹ 1.12 thousand crore approximately) for 2019–20. Assam’s development of domestic capacity supports import substitution, a national economic priority that saves foreign exchange and stimulates the local high-tech supply chain.
The policy plans for at least three world-class MRO facilities in Assam by 2030, attracting ₹ 1,500 crore in investment and creating over 1,000 skilled jobs.
By building local MRO capacity for aircraft (civil and defence), the state can significantly reduce the high costs and delays associated with sending aircraft abroad for servicing, improving efficiency for airlines and defence operators.
D. Rajasthan
Industrial Land Policy, 2025
The Rajasthan Government, through Rajasthan State Industrial Development and Investment Corporation (RIICO), has announced a new industrial land policy on 22nd November, 2025 aimed at making land more affordable for investors.
Key Features -
The policy freezes the existing reserve rates and introduces graded discounts based on land size, addressing long-standing challenges of high land costs.
Introduction of graded discounts on reserve rates based on land size:
Up to 3,000 sq. m.- no change.
3,000 to 10,000 sq. m.- 10% discount.
10,000 to 40,000 sq. m.- 15% discount.
40,000 to 2 lakh sq. m.- 20% discount.
Above 2 lakh sq. m.- 40% discount.
The policy targets sustainable industrial growth, especially benefiting MSMEs and encouraging domestic and NRI investors
Relevance -
Rajasthan’s industrial ecosystem, covering 429 RIICO industrial areas and 42,422 units in production, has been held back by high industrial land costs and frequent reserve rate hikes that discouraged investors and slowed expansion, particularly for MSMEs. Further, auction-based allotment generally results in inflated land prices and enhanced difficulties for new market entrants, contributing to slower industrial development.
The new policy addresses the above issues by freezing existing reserve rates to eliminate price-hike uncertainty and introducing graded discounts of 10 to 40 percent based on plot size, reducing effective land costs and lowering dependence on auction-driven pricing, thereby making industrial land more affordable and predictable for MSMEs, domestic investors, and NRI industrialists.,
Addresses the long-standing barrier of high industrial land costs in Rajasthan, creating conditions for more inclusive industrial growth beyond urban centres while giving investors, industrialists, and NRI stakeholders greater confidence for long-term investments in the state.
E. Odisha
Revised Maoist Surrender And Rehabilitation Policy
On 28th November, 2025, the Government of Odisha unveiled a revised version of its surrender and rehabilitation policy for members of the banned CPI (Maoist) offering substantially enhanced financial incentives and support to encourage militants to surrender.
The primary objective of the revised policy is to further strengthen ongoing efforts to reduce left-wing extremism in Odisha by encouraging active Maoist cadres to surrender voluntarily.
Salient Features -
Surrendered cadres are classified into two broad categories based on their rank:
i. Category A - senior level cadres, central committee, politburo, state committee, zonal or regional committee members.ii. Category B - divisional, platoon, local level cadres. An aid of ₹ 2.5 lakh will be provided to cadres from this category.
The policy includes enhanced compensation not only for surrendering as such, but also for surrendering weapons in working condition with higher payouts for more lethal weapons like Light Machine Guns, AK-47s and Rifles, etc.
For cadres already carrying a Government declared bounty or reward, the new policy allows them to choose between the declared reward amount or the enhanced surrender package, whichever is higher.
Additional welfare and reintegration benefits accompany the financial payouts including housing, skill development and training opportunities, and other social security measures.
Free legal aid and access to fast track courts for cases involving surrendered cadres are part of the design.
Financial Incentives -
The highest financial incentives are offered to senior leadership like Central Committee, Politburo and Central Military Commission members receive ₹ 1.20 crore, state Committee and Special Zonal Committee members ₹ 65 lakh, and Regional Committee members ₹ 33 lakh.
Mid-level commanders also receive structured incentives, divisional Committee Secretaries and Military Platoon Commanders receive ₹ 27.5 lakh, Divisional Committee Members, Deputy Platoon Commanders and Area Committee Secretaries receive ₹ 22 lakh, Local Organising Squad and Local Guerrilla Squad Commanders receive ₹ 11 lakh, and Deputy Commanders receive ₹ 5.5 lakh.
Operational and lower rank cadres are entitled to ₹ 2.75 lakh for roles in technical, intelligence, supply, medical, Gana Natya Sangha and CRC teams, while Dalam members, cadres and general party members receive ₹ 1.65 lakh.
Relevance -
Left-wing extremism in Odisha has declined significantly over the past decade. According to the Ministry of Home Affairs, the number of LWE-affected districts eligible for central assistance in Odisha fell to seven by 2024, indicating a major reduction from earlier years when the insurgency had a wider presence.
Maoist influence is now confined to limited pockets in southern and western Odisha, and the policy is designed to target this residual presence. Offering a surrender reward up to ₹ 1.20 crore (for top leaders), the policy raises the cost of staying underground making surrender a more attractive option for cadres.
The policy promises not just money, but also the possibility of a house under the state housing scheme, one time marriage incentive, and free enrolment in short term skill development programmes. These provide a foundation for surrendered individuals to rebuild their lives and integrate into society via stable income and housing.
By pairing surrender rewards with real socio economic support, the policy tackles key root causes of extremism such as poverty, limited opportunities and social exclusion. This reduces the motivation to rejoin armed groups and weakens the recruitment pipelines.
Global Capability Center Policy
The Odisha Cabinet on 21st November approved a policy to set up five Global Capability Centers (GCC) hubs in the state, aiming to boost technology-enabled services and create large-scale employment opportunities.
The policy envisages attracting major GCC investments by providing infrastructure support, ease of doing business, and incentives. The hubs will focus on IT and IT-enabled services, promoting skill development and regional economic growth.
This initiative aligns with Odisha’s strategy to position itself as a competitive destination for knowledge-based industries and high-end services.
Key Features -
Plans to set up at least five state-of-the-art GCC hubs in Bhubaneswar-Cuttack-Puri-Paradip and Bargarh-Jharsuguda-Sambalpur regions for balanced Tier-II development.
Incentives include concessional land rates, lease rentals, power tariffs, interest subsidies, SGST reimbursement, R&D support, PF/ESI contributions, relocation assistance, and co-working subsidies.
Complements Odisha IT Policy 2025 with tailored packages for mega GCCs, internship/recruitment facilitation, and a Policy Advocacy and Vision Group for implementation.
The Odisha Computer Application Centre (OCAC) is the nodal agency, which focuses on IT/ITeS, analytics, R&D, finance, and engineering services leveraging regional talent.
Public Investment Planned - State support for infrastructure, skill development, and hub establishment to enable ₹ 1,000 crore private investments and job creation.
Relevance -
It is estimated that the domestic GCC market size will reach $ 110 billion by the year 2030. This reflects India’s growing role as a source of high-skilled talent and critical business functions, which this initiative by Odisha will complement.
The number of GCCs in India has risen from 1,200 in 2021 to 1,900 and provide jobs to 19 lakh people. This strong job creation trend indicates the sector’s rising contribution to high-value employment. Odisha’s GCC initiative is expected to further accelerate this momentum by attracting new investments and generating additional skilled jobs across technology and service sectors.
Policy positions Odisha competitively against established GCC hubs by targeting cost-effective Tier-II expansion and skilled workforce development, It also drives economic diversification, employment for youth, and regional balance beyond Bhubaneswar.
F. Maharashtra
Concept Based Iconic City Development Policy
The Maharashtra Cabinet on 18th November, 2025 has approved a policy that allows state agencies, including City and Industrial Development Corporation of Maharashtra Limited (CIDCO), to develop large land parcels into integrated townships or international commercial zones via competitive bidding.
Salient Features -
Land banks of state agencies such as CIDCO and others will be developed into integrated townships or international commercial zones.
Development will proceed via a transparent tender process through appointment of Construction and Development Operators (CDOs). The CDOs will have to submit a unified concept plan for the entire land parcel covering design, land use, township layout, and infrastructure which ensures cohesive, integrated development.
Primarily applies to parcels where previously multiple operators or fragmented leasing made integrated development difficult.
The Government will adopt a revenue-sharing model and allow recovery of land value appreciation.
The Integrated Development Control and Promotion Rules, 2020will apply in addition to compliance with existing lease terms and auction conditions
Relevance -
The policy reduces investment friction by aggregating small, fragmented land holdings and offering them under a unified development framework. This significantly de-risks the project, making it viable for large institutional investors (e.g., pension funds and Private Equity) who require scale and clear title.
Unlike auctions that offer a one-time cash injection, the revenue-sharing model is a fiscally superior Land Value Capture. This guarantees the state a consistent share of the long-term land value appreciation and commercial revenue over the project’s lifetime, reducing market risk.
MHADA Large Colony Cluster Redevelopment Policy
Maharashtra cabinet via Maharashtra Housing and Area Development Authority (MHADA) has approved the Large Colony Cluster Redevelopment Policy on 18th November, 2025 for the integrated and cluster redevelopment of old MHADA colonies.
The aim is to unlock large scale redevelopment of aging MHADA housing layouts by moving to a cluster model, enabling renewal of infrastructure, amenities, housing quality, and ensuring faster implementation by replacing fragmented redevelopments.
Scope - The policy applies to MHADA colonies in Mumbai and suburbs that are 20 acres or more in area. 56 such colonies exist in nearly 5,000 MHADA housing societies.
Salient Features -
The developer must obtain a formal approval from the respective cooperative housing society representing the residents, and not individual consent. These developers are appointed through a tender process.
MHADA’s Mumbai Board will serve as the central planning and coordinating authority for around 114 redevelopment projects, ensuring uniform standards, streamlined approvals, and cohesive implementation across all eligible colonies.
Relevance -
The policy accelerates redevelopment of large public housing land parcels by eliminating delays caused by collecting thousands of individual consents. Individual consents were the single-largest bottleneck in the redevelopment of these old and dilapidated buildings.
Maharashtra can better address urbanisation pressures and affordable housing needs by leveraging MHADA’s public agency to upgrade low and middle income housing in high demand areas.
Under the cluster redevelopment model, developers are granted the highest rehabilitation Floor Space Index (FSI), enabling them to maximise commercial units for sale. This in turn cross-subsidises the construction of modern, larger free-rehabilitation homes for current MHADA residents. Therefore, effectively using market-driven revenue to fund social housing.
III. Social Sector Schemes:
A. Uttar Pradesh
Electricity Bill Relief Scheme, 2025
Uttar Pradesh Power Corporation Limited (UPPCL) launched a relief scheme on 11th November 2025, targeting over 1.45 crore electricity bill defaulters with outstanding dues totalling ₹ 55,980 crore.
The scheme aims to reduce mounting unpaid dues by providing structured payment options, surcharge waivers, and discounts spread over three registration phases from December 2025 to February 2026.
Key Features -
Covers two categories: “Never Paid Consumers” (54.12 lakh) and “Long Unpaid Consumers” (91.45 lakh) with dues totalling ₹ 55,980 crore (₹ 31,205 crore principal, ₹ 24,775 crore surcharge).
Three-phase registration: December 1st-31st, 2025; January 1st-31st, 2026; and February 1st-28th, 2026.
Registration fee: ₹ 2,000 per consumer.
Payment options: One-time lump sum (with discounts of 25%, 20%, 15% across phases), or monthly installments of ₹ 750 (10% discount) or ₹ 500 (5% discount).
Special norms for “Over Bill Outlier” consumers, whose electricity bills are abnormally high compared to their usual or comparable consumption, with normative consumption benchmarks to ensure fair and corrected billing charges.
Addresses revenue-assessment exemptions in electricity-theft cases by offering partial relief, where consumers caught in theft cases receive phased exemptions (from 50% to 60%) on the assessed dues. This reduces the financial burden and encourages them to settle their liabilities and regularise their connections.
Relevance -
The ₹ 24,775 crore surcharge is effectively a Non-Performing Asset (NPA) that the UPPCL has deemed uncollectible. By waiving 100% of the surcharge and offering a 15%–25% rebate on the principal for lump-sum payment, the state is monetising otherwise lost revenue. The scheme aims to recover the core principal amount, significantly improving the working capital and balance sheet health of the chronically loss-making DISCOMs.
Uttar Pradesh’s Aggregate Technical and Commercial (AT&C) loss is estimated at 22.33%, among the highest in India. Uttar Pradesh’s power sector incurs annual losses of about ₹ 5,000 crore solely due to electricity theft. This loss is recurring and systemic, escalating the financial burden on UPPCL. By bringing 1.45 crore defaulting consumers back into the billing and payment cycle, the scheme converts non-paying or irregular consumers into regular revenue-generating accounts.
Things To Watch Out For - In a previous edition of such a One Time Settlement Scheme run by the state in late 2024 and early 2025, the uptake was dismal. With only 18.21% of eligible consumers (defaulters) registering for the same, it is important to ensure that uptake increases for the scheme to be effective
Auto-Approval For Old-Age Pensions
The Uttar Pradesh Government has simplified the registration process for its Old Age Pension Scheme by integrating it with the Family ID system, a 12-digit unique identifier launched under the Ek Parivar, Ek Pahchan initiative. Senior citizens no longer need to apply separately.
Notably, eligible beneficiaries are automatically identified and enrolled based on the Family ID database.
The scheme currently serves 67.5 lakh pensioners with a monthly pension of ₹ 1,000. An additional 8.25 lakh Below Poverty Line (BPL) pensioners are expected to join, requiring an additional ₹ 990 crore in state funding, on top of the already allocated ₹ 8,100 crore annually.
Target Beneficiaries - Senior citizens who are domiciled in Uttar Pradesh and are registered under the Family ID system, including BPL categories.
Central Scheme Alignment - Supports the Central Indira Gandhi National Old Age Pension Scheme (IGNOAPS) under the National Social Assistance Programme (NSAP), as digital identity integration aligns with the Government’s broader e-governance and welfare automation goals.
Relevance -
The automatic enrollment feature, leveraging the Family ID database, directly addresses two major fiscal inefficiencies: exclusion errors (missing 8.25 lakh eligible BPL pensioners) and administrative transaction costs (eliminating the need for separate applications, multiple forms, and office visits). This is a highly efficient way to increase coverage while reducing operational overhead and ensuring that welfare benefits reach their intended recipients without friction.
The addition of 8.25 lakh new BPL pensioners with a monthly transfer of ₹ 1,000 acts as a significant economic stimulus into economically vulnerable households, which typically exhibit a very high Marginal Propensity to Consume (MPC). This spending is likely to have a rapid and strong consumption multiplier effect on the rural economy, directly benefiting small local businesses and traders.
It enhances social security for millions of elderly citizens, including vulnerable BPL populations, by ensuring timely pension disbursement without the need for repeated applications.
The schemes essentially leverage digitisation and database integration to move from a manual, high-friction process to a proactive, efficient one. This approach minimises exclusion errors, eliminates paperwork and physical visits for 3.15 lakh pensioners while streamlining Direct Benefit Transfers(DBT).
B. Punjab
Support Scheme For Orphaned And Dependent Children
The Punjab Government, on 19th November 2025, announced ₹ 410 crore scheme for the financial year 2025–26 to support orphaned and dependent children across the state.
The scheme, managed by the Department of Social Security, Women and Child Development, aims to provide financial assistance, educational support, and holistic development programmes to safeguard the future of vulnerable children.
Key Features -
Budget allocation of ₹ 410 crore, with ₹ 242.77 crore already disbursed to eligible children who have lost one or both parents, or whose families are in significant hardship.
Currently, 2,32,290 children benefit from ongoing financial aid supporting their education and well-being.
The scheme includes not only direct financial support but also integrated initiatives such as skill development, counselling, and other programmes for comprehensive upliftment.
Relevance -
Punjab reported to have about 23,197 orphans in the state in between 2019-21. In 2025, 195 children were rescued in raids conducted over 11 days, underscoring the ongoing vulnerability. The scheme will provide financial, educational, and psychosocial support to reduce risks such as dropout, exploitation, and instability for children across Punjab.
The disbursement of ₹ 242.77 crore via Direct Benefit Transfer (DBT) into bank accounts minimises leakage and administrative cost. While the monthly financial aid is modest (₹ 1,500 per month per child under the existing Dependent Children Pension Scheme), the certainty and directness of the transfer maximise its consumption multiplier effect on essentials (food, school supplies) within the local economy.
The policy is implicitly designed to strengthen services in areas where existing schemes like the Integrated Child Development Services (ICDS)face operational gaps. By relying on the Social Security Department and allocating a substantial, dedicated budget, the policy aims to address the fragmented infrastructure and historically low resource utilisation seen in certain urban and rural pockets of Punjab.
Hit And Run Compensation Scheme
The Punjab Government has formally launched an action plan on 16th November, 2025, for the ‘Hit and Run Compensation Scheme, 2022’, aiming to clear 3,324 pending hit-and-run cases and support bereaved families of road accident victims.
The compensation scheme provides financial relief when the offending vehicle remains untraced, thereby strengthening road safety mechanisms and victim support.
Outlay - Financial assistance of ₹ 2,00,000 for fatal cases and ₹ 50,000 for grievous injuries caused by untraced vehicles, funded per case by the state Government in accordance with Ministry of Road Transport and Highways (MoRTH) guidelines.
Target Beneficiaries- Victims and families affected by hit-and-run motor accidents in Punjab (cases where the offending vehicle or driver cannot be identified).
Central Scheme Alignment - Mirrors national MoRTH guidelines for hit-and-run victim compensation under the Motor Vehicles Act, 1988.
Relevance-
Punjab had over 3,300 hit-and-run cases, including 2,510 fatalities pending from 2022 to 2023. The intervention is well-timed, given the substantial backlog of unresolved cases and the severe impact on the families of road accident victims.
Hit-and-run cases constitute 18% of national road accident fatalities. Addressing the backlog and ensuring timely financial relief under this scheme is a crucial step for both justice and public health outcomes in Punjab.
The policy is an acknowledgement of the state’s social liability for a market failure (untraced vehicle). The compensation (₹ 2 lakh for death, ₹ 50,000 for injury) is a non-contributory welfare expenditure that directly reduces the risk of the victim’s family falling into medical or legal debt and destitution.
C. Maharashtra
Revision Of Orphan Reservation Policy
The Maharashtra Government on 14th November, 2025 has approved major changes to the 1% reservation for orphans in educational institutions, revising eligibility definitions, tightening criteria, and changing the mechanism of how orphan quota seats are filled.
Target Beneficiaries -
Orphan candidates seeking Government jobs in Maharashtra.
Orphans who are brought up in facilities run only by the Women and Child Development Department and the Juvenile Justice (Care and Protection of Children) Act (JJ Act), 2015. It does not include orphans who were not institutionalised.
A total of 765 orphans have been identified as beneficiaries under the revised policy
Key Provisions -
The reservation will now apply only to vacant posts, not all available posts streamlining implementation.
The definition of “institutional orphan” is revised to require the death of biological parents, replacing the earlier term “parents” for greater clarity.
If the selected candidate resigns or declines admission or appointment, the opportunity goes to the next eligible orphan category candidate on the waiting list.
If no orphan category candidate is available for a specific recruitment admission cycle, the reserved seat will not be carried forward to the next cycle.
Relevance -
The update resolves long standing ambiguity about who qualifies as an orphan, tightening the definition to ensure the quota reaches genuinely vulnerable children raised without biological parents.
Restricting the reservation to vacant posts clarifies implementation for institutions and avoids misinterpretation of the quota across admission cycles.
The “non carry-forward” rule ensures fiscal efficiency by eliminating the administrative and legal costs associated with maintaining a complex backlog of unfilled seats, allowing the state to focus welfare expenditure on the immediate, measurable target of 765 identified orphans.
The revised definition, requiring the death of both biological parents and verification under the JJ Act, 2015, directly counters fraud and scheme leakage. This alignment with JJ Act-recognised institutions ensures proper verification, strengthening trust, and directing limited public funds to the most vulnerable group.
D. Himachal Pradesh
Subsidised Education Loan Scheme
The Himachal Pradesh Government has rolled out the Dr. Yashwant Singh Parmar Vidyarthi Rhin Yojna (DYSPVRY) on 21st November, 2025, an interest subsidy scheme for educational loans.
This scheme allows students of Himachal Pradesh to obtain loans for higher, professional, and technical education at a significantly subsidised interest rate of just 1%.
Key Features -
Covers diploma, degree, postgraduate, and PhD courses in fields like engineering, medicine, management, pharmacy, nursing, law, and more, for study in India or abroad.
The maximum loan amount is ₹ 20 lakh per student. The loan covers tuition fees, boarding, books, and related expenses.
Applies to new admissions and students already enrolled in recognised courses.
UCO Bank will serve as the nodal bank for handling interest subsidy claims.
Target Beneficiaries- Himachal Pradesh students who are Himachal Pradesh residents, with annual family income not exceeding ₹ 12 lakh and a maximum applicant age of 28 years at the time of admission.
Incentives - Subsidy support for the differential between market and 1% interest rate on qualifying education loans.
Relevance -
The subsidised education loan scheme (1% interest, up to ₹ 20 Lakhs) removes financial barriers, ensuring meritorious students, including those from economically weaker sections, can pursue high-value professional and technical courses both nationally and globally.
The high volume of subsidised education lending increases systemic fiscal risk due to the underlying credit environment in the state. Key public sector banks report high Priority Sector Non-Performing Asset (NPA) rates (10.67% to 13.81%), suggesting high vulnerability to potential defaults tied to the eventual unemployment of external graduates. The generous structure of DYSPVRY amplifies the financial vulnerability. This combination of low-cost, state-backed financing and a high NPA rate indicates a major fiscal risk.
III. Investment Announcements:
A. Maharashtra
MoU Between MAHAGENCO And NPCIL
Maharashtra State Power Generation Company Limited (MAHAGENCO) has signed an Memorandum of Understanding (MoU) with the Nuclear Power Corporation of India Limited (NPCIL) on 17th November, 2025 to expand nuclear power generation capacity in the state, marking a major step toward long term energy security.
The collaboration aims to accelerate the development of new nuclear projects and revive stalled or slow moving units, particularly the Jaitapur Nuclear Power Project projected to be the world’s largest nuclear power plant once operational.
Target -
The partnership seeks to strengthen Maharashtra’s baseload electricity supply, reduce dependence on imported fossil fuels, stabilise long term power costs, and support industrial growth by ensuring reliable, carbon free power.
It enables NPCIL to move forward with state backed facilitation significantly reducing administrative bottlenecks and project level risks. It also benefits allied manufacturing industries, local contractors and engineering talent.
Central Initiative Alignment - Funding is aligned with the Centre’s broader nuclear innovation initiatives, including the ₹ 20,000 crore allocation for Small Modular Reactors (SMR) research and development.
Incentives - The state will support requisite clearances, land related facilitation, and departmental coordination to ensure smoother and faster implementation of nuclear power projects. No major fiscal incentives are indicated instead, the focus is on administrative support and easing project execution.
Relevance -
This MoU makes Maharashtra the first Indian state to sign up for nuclear power generation.
The MoU is an essential economic commitment to baseload stability. Nuclear energy provides dependable 24/7 power, which is a non-negotiable requirement for capital-intensive industries (e.g., auto manufacturing, semiconductors). This stability de-risks industrial investment in Maharashtra and acts as the crucial, non-intermittent complement to the state’s expanding, intermittent solar and wind capacity.
Maharashtra’s electricity consumption stands at 1.5 lakh GWh, and with national demand rising at about 6% annually, the state is expected to see a sharp increase in power requirements through the decade. As a high-demand industrial state, this growth underscores the need for reliable baseload capacity that existing thermal and renewable sources cannot fully provide. The MAHAGENCO–NPCIL MoU is therefore critical, as fast-tracking nuclear projects, particularly Jaitapur, will add long-term, carbon-free firm power, reducing import dependence and stabilising future electricity costs.
B. Andhra Pradesh
Andhra Pradesh Data Centre Investment Agreement
On 27th November 2025, the Andhra Pradesh Economic Development Board (APEDB) signed an MoU with Digital Connexion, the joint venture (JV) of Reliance Industries, Brookfield Infrastructure and Digital Realty, for a large-scale data-infrastructure investment in Visakhapatnam.
Key Features -
Under the agreement, the JV will invest $ 11 billion (approximately ₹ 99 thousand crore) to develop a 1-GW AI-ready data-centre campus spread across roughly 400 acres in Vishakhapatnam.
The MoU aims to position Andhra Pradesh as an emerging hub for advanced digital infrastructure by enabling high-capacity, AI-native data-centre development. It supports long-term digital expansion, cloud-computing demand and associated investments in energy, connectivity and skilled employment.
The Agreement allows for integration of supporting systems including power supply, fibre connectivity, cooling infrastructure and digital services.
Relevance -
₹ 99 thousand crore (approximately) investment over several years has economic multiplier effects. It can lead to large-scale job creation (construction, data-centre operations, maintenance, support services). It has the potential to boost demand for local suppliers (power, real-estate, logistics, fibre connectivity), and foster ancillary industries (hardware, cooling, security, data-services).
Building large-scale domestic data-center capacity reduces national reliance on foreign data-centers and offshore infrastructure. This shift would result in improved latency and significantly strengthen data sovereignty and regulatory compliance. Providing this foundational infrastructure is a crucial boost to India’s ambitions in AI, cloud computing, and enterprise-IT.
With the setting up of a data centre in Vishakhapatnam, it gains a strategic advantage versus other Indian states and across the global market. This could reshape location-based incentives, draw skilled workforce, and contribute to regional economic balance instead of concentration in metros.
The RIL JV plans to build a parallel 6 GW solar power plant with BESS (Battery Energy Storage System). This massive investment in captive renewable energy infrastructure is essential for the data center’s operations and provides significant CapEx and O&M job creation. This ensures the data center’s power needs do not strain the existing grid and provides a clean energy boost to the state’s overall energy mix.
C. Odisha
Odisha-TATA Power Solar Manufacturing Expansion Initiative
TATA Power is in talks with the Government of Odisha to establish a 10 GW (Giga Watt) ingots and wafers manufacturing facility, with an estimated investment of ₹ 10,000 crore.
Key Features -
The proposed facility, which is being evaluated at potential sites in Gopalpur and Cuttack, is intended to supply upstream materials essential for solar cell and module manufacturing.
The company currently has a 4.55 GW cell and module manufacturing capacity. The new plant will allow backward integration into upstream solar-supply-chain segments (ingots and wafers) used for solar-cell and panel production, for both domestic demand and export markets.
Relevance -
India currently has only 2 GW of ingot and wafer manufacturing capacity, which is insufficient to meet the rapidly growing requirements of the domestic solar sector. The proposed Odisha facility can directly address this gap by establishing a substantial domestic source for ingots and wafers, reducing import dependence and strengthening the upstream solar manufacturing ecosystem.
By creating a domestic source of ingots and wafers, the project is expected to strengthen India’s solar and semiconductor supply chain. It also reinforces Odisha’s positioning as an emerging clean-energy manufacturing hub and supports national objectives related to energy self-reliance and renewable capacity expansion.
Further, the geographical locations under consideration (both Gopalpur and Cuttack) are port-adjacent locations and the facility could serve export markets, positioning India as a competitive participant in the solar modules market globally.
D. Chhattisgarh
Investment Proposals Under Chhattisgarh Investor Connect
At the Investor Connect Meet held on 25th November 2025, the Government of Chhattisgarh received investment proposals amounting to ₹ 6,826.25 crore across the steel, energy, and tourism sectors.
Major Commitments -
The proposals include commitments from major industry players such as MB Power, SKS Power, Ambuja Cement, Chhattisgarh Distilleries, and Kedia Group, reflecting investor confidence in the state’s industrial and resource ecosystem.
These proposals are expected to strengthen sectoral diversification and align with the state’s ongoing focus on manufacturing, power generation, and tourism-led economic expansion.
The investments collectively envisage the creation of approximately 3,000 new jobs, reinforcing the state’s objective of promoting employment-intensive industrial activity.
Relevance -
₹ 6,826.25 crore of proposed investments across steel, energy, and tourism can generate significant multiplier effects over the implementation period. These commitments can drive large-scale employment creation in construction, plant operations, maintenance, power supply, mining logistics, and tourism services.
Building new steel capacity and expanding power-generation assets enhances domestic production capability, reducing operational dependence on external state assistance and contributing to more resilient industrial linkages.
Tourism and hospitality proposals give the state a strategic regional edge, allowing it to diversify beyond mineral-led growth. These projects have the potential to attract private operators, expand accommodation and recreational infrastructure, and stimulate local economies by bringing in footfall, skilled manpower, and downstream service activity across districts.
IV. Other Decisions:
A. Maharashtra
Incentive Scheme For Sugar Mills, 2025
The Maharashtra Government on 12th November, 2025 approved an incentive scheme for cooperative and private sugar mills aimed at rewarding quality performance and strengthening financial capacity.
The main aim of this scheme is to promote higher operational standards, quality production and financial discipline within the sugar industry units.
Evaluation Criteria -
100% payment of Fair and Remunerative Price (FRP) to farmers over the past three years (15 points).
Performance of other departments in the mill (10 points).
Sugar recovery rate achieved by the mill (10 points).
Production per hectare of sugarcane (10 points).
Use of Artificial Intelligence and extent of area coverage under the mill (10 points).
Low carbon emissions and the extent of carbon credit generation (10 points).
Timely repayment of Government loans and financial discipline (10 points).
Cost efficiency, audit compliance, and overall operational efficiency (5 points).
Adherence to employee strength norms and timely wage payments (5 points).
Evaluation and selection through a two-tier committee structure culminating in final approval by a panel chaired by the state Cooperation Minister.
Prize amounts and specific benefits to be notified by the state Government.
Relevance -
Maharashtra has 208 operational sugar mills, making it one of India’s largest producers. The sector is constrained by financially fragilities, with farmer protests in Kolhapur, particularly in Shirol tehsil, where delays in declaring the statutory FRP (Fair and Remunerative Price) disrupted the cane supply chain. To enforce stability, a new incentive framework now ties mill benefits directly to the timely and 100% disbursement of the FRP and enhanced performance metrics.
The criteria grants 15 points for 100% payment of FRP payments, thereby supporting farm incomes and encouraging stable supply chains. It is the most powerful economic incentive in the scheme. It directly forces mills to prioritise farmer income security to qualify for state benefits, thereby addressing the chronic issue of FRP payment arrears, which is a major source of economic and social conflict in the sugar belt.
Furthermore, for the state’s agri-industrial policy, this represents a push to modernise a legacy sector (cooperative and private sugar mills) rather than just providing ad-hoc subsidies.
B. Tripura
Power Tariff Revision, 2025-26
The Tripura Electricity Regulatory Commission (TERC) on 19th November, 2025 has approved new electricity tariff rates for the FY 2025-26, effective from 1st November 2025.
This revision aims to stabilise power supply costs, rationalise fixed charges across consumer categories, provide targeted rebates for priority segments, and support efficient management of the electricity sector in Tripura.
Key Adjustments -
The approved average cost of power supply is set at ₹ 7.61 per kWh, as compared to the ₹ 7.56 per kWh set for the previous year.
For single-phase domestic consumers, the fixed charge has been standardised to ₹ 16 per kW/month, and for commercial consumers, it is ₹ 18 per kW/month.
A 10% rebate on energy charges has been introduced for IT industries, women’s Self-Help Groups (SHGs), and mobile towers located in remote areas.
The maximum connected load has been increased to 0.5 kW (500 W) from 0.12 kW (120 W), and the maximum permissible monthly consumption has been increased to 30 kWh from 15 kWh.
Relevance -
The tariff adjustment maintains sectoral stability by balancing modest cost increases with reforms in fixed charges and rebates, rather than abrupt hikes.
This subsidy reduces operational costs for the high-growth IT sector and strategically incentivises the deployment of digital infrastructure in remote areas (mobile towers), which is critical to the state’s knowledge economy and overall connectivity goals. This rebate is implicitly cross-subsidised by higher tariffs paid by other consumer segments.
Fixed charges ensure the utility recovers a predictable portion of its fixed operating costs (salaries, depreciation, maintenance) regardless of consumption volume. This revenue certainty is vital for long-term fiscal stability and attracting private capital for infrastructure upgrades.
C. Punjab
Relaxed Norms For New Power Connections
The Punjab Government, on 10th November 2025, has simplified the procedure for applicants seeking new or enhanced-load power connections up to 50 kW under the Low Tension (LT) category.
The relaxation eliminates the requirement for submitting test reports from licensed electrical contractors or self-certification for internal wiring, replacing them with a declaration in the online application form confirming wiring quality.
Key Features -
Applies to new connections/load extensions up to 50 kW covering industrial, commercial, and domestic consumers (over 99.5% of Punjab State Power Corporation Limited (PSPCL)’s non-agricultural connections).
Consumers only need to declare in the online application if internal wiring has been executed and tested by a licensed electrical contractor or Government official and that a test certificate is available.
No submission of physical test reports is needed, however, test certification must be retained by the consumer.
Further, the relaxed norms exclude agricultural category consumers.
For LT connections above 50 kW, test report submission remains mandatory, with limited verification by officials of PSPCL.
Relevance -
The elimination of the mandatory submission requirement (the physical test report) reduces the transaction cost and time associated with obtaining a new utility connection. This is a crucial reform for Ease of Doing Business (EoDB), particularly benefiting MSMEs and developers by shortening the “time cost of investment,” allowing them to start production or sell units faster.
By substituting mandatory test report submissions with a simplified online declaration process, the policy streamlines service delivery while maintaining electrical safety through required contractor certifications, reflecting a balanced regulatory innovation accommodating consumer needs and technical standards.
The policy institutionalises a “trust-based governance” model. By shifting the initial liability and verification burden onto the consumer/contractor via an online declaration, PSPCL can reallocate its scarce inspection resources away from routine, low-risk LT connections (up to 50 kW) toward high-risk connections (above 50 kW and agricultural feeders). This optimises the utility’s fiscal expenditure on its inspectorate.
Draft Banking Procedure For Green Energy Open Access Consumers
Punjab State Power Corporation Ltd. (PSPCL) has issued banking procedures to support Green Energy Open Access consumers. This procedure enables large renewable energy (RE) consumers to bank surplus electricity generated and draw it later within their billing cycle, ensuring efficient energy use, fair cost recovery for distribution licensees, and alignment with applicable regulations.
Key Features -
The guidelines operate under the Punjab State Electricity Regulatory Commission Open Access Regulations, 2011.
Green Energy Open Access consumers with a sanctioned load of 100 kW or more connected at 11 kV or above can bank surplus renewable energy in 15-minute intervals based on scheduled generation minus transmission and wheeling losses.
Unused banked energy at the end of the billing cycle incurs a banking charge to cover grid management costs, and any leftover energy lapses but earns Renewable Energy Certificates for the generator, encouraging renewable production.
A tripartite Model Banking Agreement involving PSPCL, Punjab State Transmission Corporation Limited, and the consumer/generator clearly defines roles, responsibilities, scheduling, metering, accounting, settlement, and dispute resolution to maintain transparency and fairness.
Target Beneficiaries- Green Energy Open Access consumers in Punjab who have a sanctioned load or contract demand of 100 kW or more connected at 11 kV or higher.
Relevance -
With banking, surplus clean energy can be injected into the grid when generation exceeds demand and drawn later when needed. This flexibility increases the commercial viability of green-energy projects in Punjab under open access.
The banking mechanism and associated metering, scheduling and settlement rules ensure transparent accounting of energy flows, reducing uncertainty for both consumers and PSPCL.
While consumers get the benefits of banking surplus generation, the mandatory “banking charge” ensures distribution utilities are compensated for grid management, avoiding undue burden on the system. This strikes a balance between promoting renewables and maintaining grid financial health.
The time-block metering (15-minute intervals), scheduling, and grid accounting as per the banking procedure allow transparent tracking of RE injection and withdrawal, easing future audits, regulatory compliance and enabling data-driven assessment of RE adoption impact.
The policy is fiscally sound because it establishes a mandatory banking charge of 10% of the banked energy, deducted in kind. This charge compensates the PSPCL for the fixed costs of grid management, transmission, and balancing the intermittent renewable supply, thereby preventing it from becoming an undue financial burden on non-green energy open access consumers.
D. Telangana
Draft First Amendment To Open Access Regulation 2024 For Renewable Energy Certificates (RECs)
The Telangana Electricity Regulatory Commission (TGERC), on 20th November 2025, issued the draft “First Amendment” to the 2024 Terms and Conditions of Open Access Regulation, 2024.
The Amendment aims to clarify how Renewable Energy Certificates (RECs) are to be issued in case of unutilised or surplus banked energy injected into the grid by renewable energy generators or green energy open access (GEOA) consumers.
Key Features - Under the 2024 Regulation, GEOA consumers were allowed to get RECs for unutilised banked energy. The Amendment clarifies that instead of GEOA consumers, RECs should be issued to the underlying renewable energy generator for any unutilised or surplus energy injected into the grid in a given month.
Relevance -
The handling of energy injected before submission of the wheeling agreement lacked clarity, creating uncertainty for both consumers and generators about payment eligibility. The Amendment remedies this by stating that any energy injected from the date of GEOA approval until submission of the wheeling agreement will be treated as inadvertent power and will not receive energy-charge payments, thereby removing ambiguity and ensuring consistent treatment.
The Amendment prevents double claiming or misallocation of RECs, thereby safeguarding the integrity of the REC mechanism. It also facilitates more predictable and transparent green energy accounting, which can improve investor confidence in renewable energy projects under open access.
Telangana Draft Resource Adequacy Regulations, 2025
On 26th November, 2025, the Telangana State Electricity Regulatory Commission (TSERC) issued the Draft Resource Adequacy Regulations, 2025 aiming to institutionalise resource adequacy planning.
The regulations aim to ensure that Telangana has enough firm, dispatchable, and renewable capacity to meet peak demand, reduce shortages, and strengthen long term power system reliability.
Key Features -
All distribution licensees must prepare and submit an annual Resource Adequacy Plan to the Commission, outlining capacity availability, demand forecasts, and procurement strategies.
Distribution licensees must prepare:
i. Long-term Distribution Resource Adequacy Plan (LT-DRAP).
ii. Medium-term DRAP (MT-DRAP).
iii. Short-term DRAP (ST-DRAP).
The draft mandates that resource adequacy planning be done for a 10 year horizon, updated every year on a rolling basis.
Distribution companies (DISCOMs) must demonstrate contracted capacity both firm and renewable to ensure demand supply balance, especially during peak periods.
TSERC will periodically review the adequacy of contracted capacity. Non compliance may attract regulatory directions or corrective measures.
DISCOMs can procure from diverse sources thermal, hydro, renewables, storage, and demand side resources while aligning plans with State Load Despatch Centre (SLDC) data for accurate demand and grid reliability.
Relevance -
Telangana’s electricity demand has been rising sharply, with the state recording a historic peak of 17,170 MW in March 2025, and energy requirements projected to grow from 96,596 MU in 2025–26 to 1.5 lakh MU by 2034–35. The Draft Regulations address this issue by requiring DISCOMs to prepare annual long, medium, and short-term resource adequacy plans over a 10 year horizon, backed by demonstrated contracted capacity.
Further, it guarantees the availability of future power supply for their long-term project planning, directly supporting the state’s ambitious $ 3 trillion GDP target by 2047.
This reform ensures that DISCOMs maintain reserves and contracted capacity, reducing risks of shortages and outages. By allowing technology neutral procurement including storage the regulation supports clean energy transition while ensuring firm supply.
E. Delhi
Monthly Tariff Adjustment Proposed By DERC
The Delhi Electricity Regulatory Commission (DERC) has proposed an amendment to the Tariff Determination and Business Plan Regulations on 14th November 2025 to shift the recovery of fuel and power purchase costs from quarterly to monthly adjustments.
This aims to reduce the buildup of dues, alleviate financial stress on Discoms, and improve cash flow stability, ultimately benefiting consumers through more accurate tariff reflection.
Key Features -
Replacement of the current quarterly power purchase cost adjustment charges with monthly surcharge adjustments.
Tariff surcharge calculation linked to power tariffs from 2 months before the billing month, weighted by electricity procured.
Central Scheme Alignment - Aligns with provisions of the Electricity Act, 2003, and the National Tariff Policy, 2016.
Relevance -
The Supreme Court of India, in August, ordered that ₹ 27,200.37 crore of pending dues owed to DISCOMs in Delhi, be cleared within four years, making timely monthly cost-recovery mechanisms indispensable to prevent further accumulation and safeguard DISCOM finances.
The shift from quarterly to monthly recovery attacks the root cause of DISCOM financial stress, the accumulation of Regulatory Assets. By automatically and rapidly passing through the cost of power purchase, the state reduces the need for the DISCOMs to borrow heavily, but ultimately increases burden on customers.
The proposed monthly tariff adjustment mechanism by DERC addresses the critical issue of financial instability in Delhi’s power distribution companies by reducing the buildup of unpaid dues, thereby enhancing liquidity and operational efficiency.
Furthermore, the DERC has introduced provisions for Negative Fuel and Power Purchase Adjustment (FPPA/FPPAS), requiring refunds to consumers when costs fall, creating a two-way accountability model that ensures stronger accountability for DISCOMs.
E. Bihar
Draft BERC (Terms And Conditions For Tariff Determination From Renewable Energy Sources) Regulations, 2025
The Bihar Electricity Regulatory Commission (BERC) on 21st November, 2025, notified the Draft BERC (Terms And Conditions For Tariff Determination From Renewable Energy Sources) Regulations, 2025 to lay down clear terms and conditions for tariff determination from renewable energy sources in the state.
These regulations introduce a ceiling-levelised tariff framework and replace the BERC (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2017, aiming to provide developers with predictability while protecting consumers and aligning with national renewable energy policies.
Key Features -
BERC has notified new 2025 regulations under the Electricity Act, 2003, to govern tariff determination for renewable energy projects and to ensure a mandated share of power procurement from renewable sources by distribution licensees.
Introduction of a ceiling levelised tariff, where the norm-based levelised tariff works as the maximum permissible tariff for a project, giving developers tariff visibility while safeguarding consumers against excessive tariffs.
Clear recognition that, in case of conflict, policies or guidelines issued by the Ministry of Power, Ministry of New and Renewable Energy (MNRE), or state Government will prevail over these regulations.
Central Scheme Alignment -
Anchored in the Electricity Act, 2003, the mandate to promote renewables and enforce Renewable Purchase Obligations (RPO) for distribution licensees.
Relevance -
Bihar lacked a clear, predictable tariff framework under the older 2017 rules, increasing regulatory risk and raising financing costs for developers. The 2025 BERC regulations fix this by introducing a ceiling levelised tariff, giving developers upfront clarity on the maximum tariff they can recover, reducing risk premiums, improving bankability, and encouraging project inflow.
DISCOMs must buy a certain amount of renewable power to comply with RPO. If the tariff regime is uncertain or frequently revised, Average Power Purchase Cost (APPC) forecasting becomes volatile, creating risk of revenue gaps.
Small solar, wind, biomass, or mini-hydro units (<5 MW) often struggle because transaction costs are high and tariff-setting is unclear. The 2025 regulations address this by providing uniform feed-in tariff norms and standardised cost parameters, making small-capacity and distributed projects financially viable and easier to finance.
Ensures consumer protection by capping maximum tariffs while aligning with national and state renewable energy policy frameworks to support national clean energy goals.
G. Meghalaya
New Deviation Settlement Mechanism Regulations, 2025
On 17th November, 2025, Meghalaya State Electricity Regulatory Commission (MSERC) issued the Intra State Deviation Settlement Mechanism and Related Matters Regulations, 2025 to govern deviation settlement and energy accounting across the state of Meghalaya.
This aims to maintain grid stability by ensuring that generators, distribution companies, and consumers adhere strictly to their scheduled drawal and injection of power.
Key Features -
Applies to all intra state generating stations (including renewable projects ≥ 5 MW), distribution licensees, open access consumers, and captive power users.
Deviation for generation or drawal is calculated in 15 minute time blocks.
For general sellers: deviation = actual injection – scheduled generation.
For wind and solar (WS) sellers: during the transition period until 31st March 2026, deviation percent is calculated against the available capacity. While, from 1st April, 2026 onwards, a formula based on a mix of available capacity and scheduled generation (with a Commission-determined “X%” weight) will apply.
Deviation charges apply for both over and under injection drawal. For energy storage systems (ESS), overdrawal during charging is treated as under injection, and underdrawal as over injection.
In specific cases deviations may be exempted or charged at reference contract rates. Notably, for forced or partial outages, special charge rules apply.
For buyers consumers or multi source consumers drawing power from open access and DISCOMs, actual drawal is first matched against scheduled open access and the remainder is billed by the DISCOM. Any deviation beyond schedule may attract DSM charges or penalties.
Non-payment or delayed payment of DSM charges triggers interest charges (0.04% per day), and repeated defaults may require opening a Letter of Credit (LC) equal to 110% of average payable liability.
Relevance -
India’s grid must stay close to 50 Hz, and even small mismatches between scheduled and actual power flows create instability and threaten grid security. The DSM Regulation directly addresses this by enforcing 15-minute scheduling discipline on all generators, DISCOMs, captive users and open-access consumers, and by applying deviation charges for any over- or under-injection, thereby reducing unscheduled flows that destabilise frequency.
Regulations protect the power system from overdrawal by consumers and over injection by generators, which can otherwise lead to grid congestion or outages. Improves forecasting accuracy by pushing generators, especially renewable units to provide more reliable schedules.
V. Key Takeaways and Themes for The Fortnight:
Mining and Land Reforms: States address revenue leakage and titling delays through targeted reforms. Odisha overhauls minerals regulation after CAG-noted ₹22,392 crore losses (2015–2022) with tech-driven enforcement. Amendments to Survey Rules empower tehsildars for direct Record of Rights updates, reducing judicial backlog.
Industrial Incentives: Policies cut land and setup costs to boost manufacturing. Rajasthan freezes reserve rates with 40% discounts on large plots in 429 areas to accelerate MSMEs. Karnataka enables iron ore exports via non-major ports, aligning with their 45% share of national port cargo (2022–23).
Tech and Innovation Push: States build long-term ecosystems with multi-year visions. Karnataka targets 25,000 startups via ₹518 crore outlay, 50 satellites under space policy, and tripled IT exports. Assam drafts space policy for ASSAMSAT to support its 39.6% flood-prone land area.
Labour and Welfare Formalisation: New frameworks secure informal workforce segments. Haryana triples quarterly overtime to 156 hours under Shops Act amendments. Telangana’s gig bill covers 4.2 lakh workers through a 1–2% aggregator levy for a dedicated welfare fund.
Infrastructure Investments: Large MoUs and schemes attract private capital. Maharashtra-NPCIL nuclear MoU speeds Jaitapur project. Assam’s MRO policy targets ₹1,500 crore investment and 1,000 jobs by 2030. UP electricity relief scheme aims to recover dues from 1.45 crore defaulters.
Across sections, a few themes stand out clearly. States are tightening regulatory design in traditionally opaque domains like mining, land administration, and power procurement. This is evident in Odisha’s overhaul of 2007 rules amid 169 million tonnes iron ore output (2023–24), Madhya Pradesh’s fire safety draft mandating certificates for 15m+ high-rises after leading national incidents (23% of 2014–2022 cases), and Telangana’s rooftop solar norms exempting surcharges on 418 MW existing capacity while simultaneously using graded incentives, interest subsidies, and targeted welfare schemes to shift behaviour among firms, households, and frontline institutions. There is also a visible move from ad hoc announcements to longer-horizon frameworks. Assam’s MRO policy eyes ₹1,500 crore investment and 1,000 jobs by 2030, Karnataka’s space-tech push targets 50 satellites and 50,000 skilled professionals, and Rajasthan’s industrial land policy offers 40% discounts that attempt to lock in investment, improve human capital, and rebalance growth beyond a few urban centres. Taken together, the decisions captured here illustrate how subnational policy is being used to manage fiscal risk, crowd in private capital, and respond to distributional pressures in ways that will be important to watch in subsequent editions.