Welcome to the latest edition of States in Motion: What’s Happening in Indian States! The month of October 2025 marked a significant period of policy action and reform across various Indian states and Union Territories. This comprehensive review captures key economic decisions, legislative reforms, and social sector initiatives that highlight the diverse trajectories of state-level governance. From Haryana’s trailblazing Jan Vishwas Ordinance aimed at decriminalizing minor offences to Maharashtra’s bold directive fostering a 24x7 night-time economy, states are actively reshaping their regulatory landscapes to boost investment, enhance ease of doing business, and promote inclusive growth. Gender-responsive policies such as Delhi’s permission for women to work night shifts and Karnataka’s introduction of paid menstrual leave underscore a broader push towards workplace equity and social welfare. Simultaneously, visionary frameworks like Maharashtra’s “Viksit Maharashtra 2047” and Rajasthan’s “Viksit Rajasthan 2047” lay out long-term economic ambitions backed by robust sectoral strategies. This report distills the critical developments in governance, infrastructure, social security, and industrial policy across India’s federal polity during October 2025, reflecting a dynamic encapsulation of innovation, regulatory overhaul, and socio-economic priorities.
I. Reform Decisions:
A. Haryana
Cabinet Approval To Jan Vishwas Ordinance, 2025-
Source: Click Here
The Haryana cabinet has approved the Haryana Jan Vishwas (Amendment of Provisions) Ordinance, 2025, aimed at decriminalising minor offences, replacing criminal penalties with civil penalties and administrative actions, to reduce compliance burdens.
Scope - The ordinance decriminalises 164 provisions in 42 state Acts overseen by 17 departments.
Central Scheme / Initiative Alignment-
The ordinance aligns with the central Jan Vishwas (Amendment of Provisions) Act, 2023, which decriminalised 183 provisions under 42 Central Acts. It aligns with the Union Government’s efforts for Minimum Government, Maximum Governance.
It forms a critical component of the ongoing Compliance Reduction and Deregulation (CRD) exercise drive coordinated by the Cabinet Secretariat, and was identified as a key reform during the Fourth Chief Secretaries’ Conference.
Relevance-
The reduced fear of criminal penalties boosts investor confidence and compliance, enhancing the ease of doing business. Clean-up of redundant legal provisions creates clear, predictable regulatory expectations for individuals and enterprises.
By removing 164 minor offences from the criminal court system and routing them to an administrative adjudication mechanism, the policy aims to save the time of the judges so that they can focus on serious crimes. This efficiency improves the speed of dispute resolution, a critical factor for attracting investment.
Several state Governments have implemented or initiated similar decriminalisation reforms to complement the Central Government’s Jan Vishwas initiative. Odisha and Tripura have approved state-specific Jan Vishwas ordinances, whereas Madhya Pradesh Government has passed The Madhya Pradesh Jan Vishwas (Amendment of Provisions) Act, 2024, which amends numerous state laws to decriminalise minor and procedural breaches. Uttar Pradesh is in advanced stages of introducing the Sugamya Vyapar (Provisions Amendment) Bill, 2025, which aims to comprehensively decriminalise minor offences and streamline business regulations.
Together, these state-driven actions reinforce the central reform’s objectives of improving ease of doing business and provide a model and impetus for other states to undertake similar initiatives, significantly reducing the judicial burden marking a transition toward a more facilitative, trust-based governance framework.
B. Odisha
Cabinet Approval to Odisha Jan Vishwas Ordinance, 2025-
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The Odisha Government approved the Odisha Jan Vishwas Ordinance, 2025, to decriminalise minor and procedural regulatory offences across 16 state legislations.
The ordinance replaces criminal penalties with graded civil penalty regimes and eliminates imprisonment for non-serious cases to promote trust-based governance.
Scope - The ordinance covers 16 state legislations across 9 departments, including governance, cooperatives, taxation, excise, urban development, and health.
Central Scheme / Initiative Alignment:
The ordinance aligns with the central Jan Vishwas (Amendment of Provisions) Act, 2023, which decriminalised 183 provisions under 42 Central Acts, reducing compliance burden and promoting deregulation to enhance ease of doing business.
Relevance:
The shift from a punitive, suspicion-based system to a trust-based governance model fosters economic confidence and encourages voluntary compliance among entrepreneurs and citizens.
By streamlining compliance and removing criminal penalties for minor procedural lapses, the ordinance enhances ease of doing business (EoDB) and reduces legal risks for businesses in Odisha. Covering key sectors like taxation, excise, and urban development, it not only makes the state more attractive to investors, supporting higher foreign and domestic investment, but also improves state revenue, facilitates infrastructure projects, and simplifies the process of starting and running businesses.
C. Uttar Pradesh
Cabinet Approval To Ordinance Decriminalising Trade Offences-
Source: Click Here
The Uttar Pradesh Cabinet has approved Uttar Pradesh Sugamya Vyapar (Ease of Doing Business) Amendment of Provisions Ordinance 2025 to decriminalise offences under 13 major industrial and trade laws, replacing imprisonment with monetary and administrative penalties.
Scope - It covers 10 Acts and has amended more than 40 provisions and decriminalised 200 compliances. These new regulations will affect 14 Government departments, and around 90% of minor offences covered by the earlier 10 Acts will now result only in monetary penalties, rather than imprisonment.
Central Scheme / Initiative Alignment -
The Ordinance aligns with the central Jan Vishwas (Amendment of Provisions) Act, 2023, which decriminalised 183 provisions under 42 Central Acts, reducing compliance burden and promoting deregulation to enhance ease of doing business.
Relevance -
The Ordinance tackles the challenge of arbitrary penal action and legal risk among investors and business owners by making business compliance faster and safer. The recent reforms complement the state Government’s efforts at improving the Ease of Doing Business (EoDB) which has eliminated 948 Acts and regulations, decriminalised 577 compliances, and streamlined over 60 labour-related reforms.
The state’s EoDB performance has demonstrated substantial improvement as the state progressed from “Performer” status in 2017 to “Top Achiever” designation by 2022-23 in EoDB rankings reflecting successful implementation of regulatory reforms. These reforms enhance the state’s appeal to investors and strengthen its ability to compete with other leading industrial states.
As the state advances toward its ambition of achieving a $ 1 trillion economy by 2030, the rationalisation of legal risks and regulatory burdens becomes a critical enabler for sustaining investor confidence and catalysing large-scale investments.
D. Maharashtra
Operations Directive For Shops And Establishments In Maharashtra-
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The Maharashtra Government has issued a directive to allow shops and commercial establishments to operate 24 hours a day, seven days a week.
Key Features -
The directive is applicable to all shops, restaurants, theatres, malls and commercial establishments.
The only exception is for liquor shops, permit rooms, bars, hookah parlours, discos etc., which must continue operating under regulated hours.
Every employee must be granted a continuous weekly off of 24 hours to protect labor welfare.
Relevance -
The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 already allowed “non-liquor” establishments to function 24 hours a day. The new directive enables the active implementation of these provisions across the state.
It is projected that keeping the city open all night in Maharashtra could yield an extra $ 649 million per year in revenue to the state. About 3 million foreign and 40 million domestic tourists visit Mumbai each year.
The policy aims to formalise and capture the economic activity of the “Night-Time Economy,” allowing fixed assets like shops, theatres, and malls to operate longer. This increases capital utilisation and can boost Maharashtra’s GDP from the services sector.
The boosted economic activity is likely to be higher in urban centres such as Mumbai, Pune, and Nagpur, where demand for late-night services and entertainment remains high.
A 24×7 economy increases demands on public infrastructure and services. However, late-night activity places additional strain on police patrolling, public transport, and civic services such as waste management and street lighting, requiring higher operational resources and planning.
E. Delhi
Permission For Women To Work In Night Shifts-
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The Delhi Government has formally notified rules permitting women to work night shifts in shops and commercial establishments, subject to their mandatory written consent.
Key Provisions -
Women are allowed to be employed in night shifts in shops/commercial establishments, but only with their written consent.
No employee (including women) may work more than 9 hours in a day (including rest/meal time).
No employee may work more than 48 hours in a week.
No employee may work more than 5 hours continuously without a break.
For overtime or night‐shift work, the employer must ensure suitable arrangements for safety, security and transportation for all employees.
Overtime wages must be paid at double the normal rate, as per the rules under the Delhi Shops and Establishments Act, 1954.
The employer must constitute an Internal Complaints Committee (ICC) under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 when engaging women workers.
Employers must install CCTV cameras in the workplace and preserve the footage for at least one month and footage must be made available to authorities if requested.
The allowance is conditional with provisions for safety, security, and labor protections under the Delhi Shops and Establishment Act, 1954.
Relevance -
Advances gender equality in the workplace by enabling women to participate in night-shift work, expanding their employment opportunities in retail and commercial sectors.
Ensures worker safety and dignity by mandating written consent, safety arrangements, and compliance with POSH and labor welfare laws, fostering a secure work environment.
By removing the legal barrier to night work (Sections 14, 15, 16 of the 1954 Act), the state removes a supply-side constraint on female labor.
Similar Initiatives By Other States -
Odisha: The state permitted women to work in night shifts in factories, shops and commercial establishments, subject to written consent, minimum number of women per shift, GPS-enabled transport, CCTV and adequate amenities.
Haryana: State permitted women to work night shifts (8 pm-6 am) in sectors like IT/ITeS, logistics and warehousing, subject to employer compliance with safety conditions and written consent.
Madhya Pradesh: The state allowed women to work between 9 pm and 7 am in shopping malls, factories and commercial units under new safety norms.
F. Andhra Pradesh
Standard Operating Procedure (SOP) for Online Change of Land Use (CLU) Permissions-
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The Municipal Administration and Urban Development Department issued a Standard Operating Procedure under the Andhra Pradesh Metropolitan Region and Urban Development Authorities Act, 2016 to operationalise online CLU (Change of Land Use) approvals via the Andhra Pradesh Development Permission Management System (APDPMS 2.0), ensuring time-bound, transparent service delivery.
Key Provisions -
Introduces a single-window digital platform integrating CLU, Transferable Development Rights (TDR), Layout Regularization Scheme (LRS), Building Permission System (BPS), and Real Estate (Regulation and Development) Act, 2016 modules under APDPMS 2.0.
Requires online registration, digital submission of documents, and payment of an application fee of ₹ 10,000 (or as notified).
Mandates scrutiny of applications by the respective ULBs or UDAs, followed by review by the Directorate of Town and Country Planning (DT&CP) and the Government’s CLU Scrutiny Committee.
Fixes CLU charges at 1 % of the prevailing SRO value of the total site area (minimum ₹ 5 per sq.m) or 1 % of total built-up area value for existing buildings.
Specifies a 45-day Service Level Agreement (SLA) for the complete process, including scrutiny, approval, and publication of draft and final notifications in the state Gazette.
Links all approved CLU orders with the GIS Master Plan Portal and PM Gati Shakti Portal for real-time updates to master-plan layers.
Relevance -
The introduction of a digital, single-window system for CLU approvals enhances efficiency and transparency in land-use governance. It simplifies approval procedures, minimises manual intervention, and ensures time-bound processing, benefiting developers, landowners, and planning authorities statewide.
The fixed 45-day SLA for CLU approval is a crucial de-risking measure for developers. Land-use conversion delays traditionally add enormous time costs to projects, often resulting in developers losing millions in interest payments (Interest During Construction - IDC). By accelerating this process, the state reduces the capital cost of real estateand infrastructure projects, encouraging faster investment.
Common Zoning Regulations-
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The state Government has introduced the Common Zoning Regulations (CZR), 2025 to create a unified framework for urban development and land-use planning across all Urban Local Bodies (ULBs) and Urban Development Areas (UDAs), promoting clarity, uniformity, and sustainable growth.
Target -
All urban and peri-urban areas are governed by ULBs, municipalities, nagar Panchayats, and various UDAs.
The framework targets developers, urban planners, investors, and the general public for better planning and streamlined approvals.
Key Provisions -
Consolidates all land uses into nine zoning categories with clearly defined permitted, restricted, and prohibited uses.
Implements uniform zoning norms across planning jurisdictions to remove ambiguity and ensure predictability.
Enables faster, rule-based approvals through the Online Building Permission System (OBPS), reducing administrative discretion and delays.
Introduces environmental safeguards by prohibiting construction in eco-sensitive, heritage, water-body, and defense-sensitive zones while allowing regulated eco-tourism and recreation.
Ensures compliance with standardised urban planning and development control norms for transparent governance.
Central Initiative Alignment – Aligns with the Urban and Regional Development Plans Formulation and Implementation (URDPFI) guidelines issued by the Central Government.
Relevance -
Andhra Pradesh is witnessing rapid urbanisation and expanding municipal boundaries, increasing the need for uniform and transparent development controls. The unified zoning framework will help reduce project approval delays, ensure consistent interpretation of land-use norms, and support orderly urban growth across all ULBs and UDAs.
G. Assam
Mission Basundhara 2.0-
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The Assam Cabinet has approved 224 proposals under Mission Basundhara 2.0 to allot land “pattas” (legal ownership documents) to landless indigenous families, marking a significant stride toward resolving long-standing land disputes and securing equitable land rights for native communities.
Context -
Mission Basundhara 1.0 launched on 2nd October 2021 primarily focused on fast-tracking the updation of existing land records through digital services and the resolution of legacy issues, such as mutation, partition, deed correction, and conversion requests, for recorded pattadars.
Mission Basundhara 2.0 launched in 2022 focus towards providing land rights by granting legal pattas to landless indigenous families and marginalised groups, ensuring more inclusive coverage and emphasising the regularisation and legal documentation of land for those without any previous proof of ownership or title.
Mission Basundhara 3.0 has further broadened the scope with the goal of fully digitising land records, conducting comprehensive polygon and hybrid surveys for all villages, integrating digital maps with land records, relaxing documentation requirements for specific communities (like SC/ST/Tea Tribes/Gorkhas), and aiming for the issuance of land passbooks to all landholders for complete tenure security and seamless land governance.
Relevance -
Assam has faced challenges of land tenure insecurity, with estimates indicating that up to 90% of natives did not possess permanent land ‘patta’, and at least 7–8 lakh native families were entirely landless at the start of recent reforms. This lack of secure land documentation has left many indigenous communities vulnerable to eviction and denied access to formal credit
The administrative intervention grants over 2.29 lakh land pattas (with 84% to marginalised groups),which will transform informally occupied land into a liquid, fungible asset promoting mechanism for rural financial inclusion.This will enable the 2.29 lakh families to use their land as collateral to access formal institutional credit.
H. Karnataka
12 Annual Menstrual Leaves For Women Employees-
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The Karnataka Government has approved a first of a kind policy decision by any state Government in India, granting 12 menstrual leaves annually to women employees across both Government and private sectors to promote health and workplace inclusivity.
Targeted Beneficiaries-
Women employees in Karnataka working across all sectors: public and private.
Employers in diverse industries with female workforce presence, including garment factories, IT firms, and multinational companies.
Key Provisions –
Women employees are entitled to 1 paid menstrual leave per month, totaling 12 leaves per year.
The Leave may be taken either periodically each month or all at once during the year.
Relevance –
A study found that 270 of 500 working women in India take leave during menstruation. It affects a majority of women and leads to significant productivity losses through both absenteeism and presenteeism. Granting 12 days of paid menstrual leave can improve productivity on remaining days, offsetting the cost through better work quality and consistency.
Karnataka has one of the highest female Labour Force Participation Rates (LFPR) in the country, at 31.5%. By introducing menstrual leave, Karnataka aids female talent retention, especially in the high-skilled Multinational National Company sector, a major contributor to its GSDP.
The policy will increase the cost of labor for employers, particularly for MSMEs that operate on narrow margins and already face high competition, thereby disincentivising them from hiring women.
States with many MSMEs or informal sectors such as Bihar or Jharkhand may face challenges implementing a similar menstrual leave policy due to thin margins, while states with higher formal sectors (Maharashtra, Tamil Nadu, Gujarat, Kerala, Telangana) could adopt it fully to enhance retention, productivity, and inclusivity.
I. Tamil Nadu
Proposal Notified Permitting Women Workers In Hazardous Factory Operations-
Source: Click Here
Tamil Nadu Government has proposed to amend Tamil Nadu Factories Rules, 1950 to permit women workers to be employed in dangerous operations.
Target - Female workers employed in factories across Tamil Nadu, particularly those involved in hazardous operations.
Context - Under the Factories Act, 1948, states can issue rules prohibiting or restricting employment of women and adolescents in certain “dangerous operations”
Key Provisions -
Women will be permitted to work in around twenty hazardous or dangerous operations from which they were previously barred under state rules.
The industries/operations covered include: chemical works, glass manufacturing, lead processing, petroleum/gas handling, fireworks, high-noise/vibration environments, dyeing/printing involving lead, tanning, cashew nut processing, among others.
Pregnant women and young persons continue to be excluded from such hazardous operations for health and safety reasons.
Relevance -
Tamil Nadu accounts for a substantial share of the national female factory workforce. Approximately 42% of registered women factory workers across India were employed in Tamil Nadu. This figure underscores the state’s dominance in industrial female employment. The amendment directly expands the potential job market for this large existing pool of female factory workers.
By allowing women into jobs involving lead processing, glass manufacturing, and chemical handling, the state increases the available skilled labor pool for these historically male-dominated, high-output industries. This flexibility is vital for firms seeking to maximize labor efficiency and potentially lower the gender wage gap by giving women access to better-paid, technical roles.
J. Punjab
Charges For Illegal Land Encroachments-
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The Punjab Cabinet has approved a proposal to enable the Government to collect charges from persons or entities who have illegally occupied village common lands such as village paths (panchayat roads) and watercourses.
Target –
Regularising and regulating village common land and watercourse encroachments for collective benefit and legal compliance.
Implementation Provisions –
The Government plans to amend the Punjab Village Common Lands (Regulation) Rules, 1964 to legally enable this arrangement.
Price fixation committees will be constituted under the Deputy Commissioner of the district. These committees will determine what to charge from those in illegal possession.
The revenue collected will be shared between the local body/panchayat and the state Government.
Relevance –
As of December 2024, over 90,000 acres of panchayat land was still in possession of the land mafia in the state. This initiative turns the encroachments into a source of formal revenue and acts as a deterrent against future encroachments.
The policy to regularize encroachments on village common lands (shamlat deh) by collecting charges is a crucial step in asset formalisation. Regularised land provides rural residents with legal tenure security, enabling them to use the land as collateral for formal credit, which is essential for expanding farm businesses and improving overall rural financial inclusion.
Roshan Punjab Mission-
Source: Click Here
The Punjab Government has launched the ‘Roshan Punjab’ mission aimed at ensuring round-the-clock, affordable electricity supply to homes, farms, and industries across the state within one year.
Outlay – ₹ 5,000 crore allocated for upgrading transmission lines, repairing infrastructure, and building new substations.
Key Initiatives –
Effective and timely completion of infrastructure upgrades and new substations.
Stability and sustainability of the coal supply secured from the Pachhwara mine.
Management and efficiency under state control of GVK Thermal Plant.
Removing hanging cables and improving public safety.
Operational effectiveness of the new 180-seat call centre in Mohali for grievance redressal.
Achieving the goal of an uninterrupted power supply to all sectors within a year.
Relevance –
Punjab’s power sector is historically prone to cyclical outages and transmission bottlenecks, costing industries and farmers millions in lost productivity. With annual demand peaking 17,233 MW, the mission’s upgraded infrastructure is expected to reduce technical losses, support stable manufacturing growth, and enable Punjab to meet new and future energy needs sustainably.
The mission directly targets the outage cost faced by industries and farmers. There is evidence that power outages cost the small-scale manufacturing sector alone millions in lost output and a higher Total Cost of Operations (TCO) due to reliance on expensive diesel generators.
By eliminating this cost, the mission acts as an indirect subsidy to industry and agriculture, boosting labor productivity and making the state’s products more competitively priced.
Further, coal from captive mines is significantly cheaper than procuring power from the open market or international sources. By integrating generation assets under state control,Punjab stabilises its long-term power procurement costs and reduces the risk of circular debt accumulation (the financial mess that plagues many state DISCOMs).
K. Rajasthan
Rajasthan Shops and Commercial Establishments (Amendment) Ordinance, 2025-
Source: Click Here
The Rajasthan Government has approved the Rajasthan Shops and Commercial Establishments (Amendment) Ordinance, 2025.
Key Provisions -
The ordinance applies to all shops and commercial establishments across the state.
The ordinance prohibits employment of children below 14 years in shops and commercial establishments.
The minimum age of apprenticeship has been increased from from 12 to 14 years.
The ordinance bars adolescents (14 to 18 years) from night shifts and enhances worker safety and welfare through new rules.
Central Policy Alignment - Aligns with the Child and Adolescent Labour (Prohibition & Regulation) Act, 1986 which prohibits employment of children below 14 years in scheduled occupations and processes.
Relevance -
In Rajasthan, 2.52 lakh children (age 5-14) are working, highlighting persistent child labour in informal sectors such as small shops, eateries, and household enterprises which this update will help tackle.
By increasing the minimum age of apprenticeship from 12 to 14 years, the ordinance ensures that the initial phase of vocational training does not compromise a child’s fundamental right to complete elementary education (up to 14 years), as guaranteed under the Right to Education Act, 2009.
L. Kerala
Cabinet Approval For Land Title Deeds In Forest Areas-
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Kerala Cabinet approved easing of regulations, allowing the issuance of land title deeds for forest areas without regard to the size or scale of any existing buildings on those lands.
Target Beneficiaries -
Individuals and families who have settled and built homes, shops, or structures on forest lands prior to 1st January, 1977.
Benefit thousands of settlers across Kerala, especially in areas where over 2,500 hectares await Central regularisation.
Key Provision And Incentives -
Eligible settlers will receive formal ownership irrespective of the size or nature of their buildings and prior construction will not affect title eligibility.
Shop sites on forest land are explicitly included.
Application for regularisation will only demand a small fee, with no compounding fee for regularisation.
Implementation -
The State Government had earlier submitted a proposal to the Centre seeking regularisation of around 2,500 hectares of forest land occupied by eligible settlers. The Cabinet’s latest decision builds on this earlier request, which is pending with the Central Government for approval.
The state is advancing a Digital Resurvey Programme, unprecedentedly surveying 4.5 lakh hectares in 18 months to modernise land administration.
Smart village offices and digital revenue cards will streamline public investment in land governance and service access.
Further investments will support digital mapping, online record integration, and digitised boundary verification for title deeds.
Relevance -
The title deeds allow households to access formal credit, liquidate the real estate market, invest in home improvements, and escape persistent threats of eviction. The integration of commercial sites (e.g., shops) and small businesses further broadens the reform’s positive impact among rural innovators and entrepreneurs.
Historical resurvey efforts since the 1960s made only piecemeal progress, with only 911 villages fully resurveyed by 2022. The Digital Resurvey Programme with over 8 lakh hectares digitally surveyed, is building a baseline of trusted land data, resolving boundary disputes. Integrated with banking, disaster response, and infrastructure systems, it enhances property valuation, expands the tax base.
II. Policy Level Announcements
A. Maharashtra
Viksit Maharashtra 2047-
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The Maharashtra Cabinet has approved the ‘Viksit Maharashtra 2047’ Vision Document, outlining the state’s developmental goals for 2030, 2035, and 2047 with an overarching aim to transform Maharashtra into a $ 5 trillion economy. The strategy was crafted after consultations with over 700,000 stakeholders and involves a citizen-led, inclusive framework.
Goals And Timeline -
Short-term Goals (up to 2029).
Medium-term Goals (up to Maharashtra@75 in 2035).
Long-term Goals (up to India@100 in 2047).
Investment Requirement - Investment projected at $ 13-14 trillion from 2024 to 2048 is required to meet economic and sectoral growth targets.
Key Initiatives - A Vision Management Unit under the Chief Minister will oversee implementation, integrating stakeholder inputs and sectoral action plans across 16 groups. Over 100 flagship initiatives have been identified to drive progress in priority areas.
Agriculture Sector:
Integrated value chains for 10–15 high-value crops to enhance productivity, processing, and farmer income.
Tenfold increase in marine and fisheries production, targeting 6 million tonnes through modern aquaculture and value addition.
Promotion of contract farming and farmer-producer organisations (FPOs) for better market linkages and collective bargaining power.
Adoption of climate-resilient and water-efficient agriculture practices to safeguard livelihoods and ensure sustainable growth.
Industry Sector:
Creation of 20+ autonomous industrial townships under the Invest Maharashtra initiative to attract large-scale private investments.
Integrated value chains and R&D hubs for around 24 focus sectors to promote innovation-driven manufacturing.
Strengthening of the MSME ecosystem through a dedicated commissionerate and support for access to finance and markets.
Establishment of a deregulation commission to streamline procedures, reduce compliance burden, and foster ease of doing business.
Services Sector:
Transformation of the Mumbai Metropolitan Region (MMR) into a global fintech and financial services centre.
Development of the Mumbai–Pune corridor as a Media-Tech and AVGC (Animation, Visual Effects, Gaming, Comics) innovation hub.
Creation of India’s largest deep-tech ecosystem, targeting over 50,000 patents and a strong innovation pipeline.
Expansion of Global Capability Centres (GCCs) to generate over 3 million high-skilled jobs.
Scaling up of retail and trade MSMEs to over 5 million enterprises, strengthening the state’s service economy.
Central Initiative Alignment - The roadmap aligns with the Union Government’s Viksit Bharat @2047 vision.
Relevance -
The projected $ 13-14 trillion investment requirement from 2024 to 2048 is enormous. This implies the need for Maharashtra to become a primary global capital sink, attracting sustained Foreign Direct Investment (FDI) and Public-Private Partnership (PPP) capital, particularly for non-traditional sectors like green hydrogen, semiconductors, and deep-technology.
The district-level analysis reveals that 12 districts have per capita income below the national average despite Maharashtra’s per capita income being 148% of the national average. The Vision Document’s emphasis on creating 10+ regional development authorities and district strategic plans supported by a World Bank project represents a necessary corrective measure, though implementation remains challenging.
The industrial translation rate presents another challenge with only 44.57% of industrial proposals approved since 1991 have been commissioned. Although recent efforts through MAITRI have significantly helped to address the issue, the Vision Document’s provision for a single clearance window aims for major streamlining of regulatory and project approvals, focusing on ease of doing business across sectors.
Global Capability Centre (GCC) Policy, 2025-
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The Maharashtra cabinet has approved the GCC Policy to establish the state as a leading hub of GCCs in India, leveraging its industrial base.
Target – To set up 400 new GCCs attracting an investment of ₹ 50,600 crore and generate four lakh high-skilled jobs by 2030.
Incentives –
₹ 10 crore for small units with an investment of ₹ 50 crore;
₹ 20 crore for medium units with an investment of ₹ 100-250 crore;
₹ 50 crore for large units with an investment of ₹ 250-300 crore;
Reimbursements for rent, green certification, patent filing, and research and development grants.
Salient Features -
The policy promises single-window clearance through Maharashtra Industry, Trade and Investment Facilitation Cell (MAITRI) and non-fiscal incentives like zoning relaxation and uninterrupted utilities.
A GCC Growth Council will be formed to monitor, advise and adapt the policy based on regional needs and global business trends.
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 global innovation hub, which this initiative by Maharashtra 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. Maharashtra’s GCC initiative is expected to further accelerate this momentum by attracting new investments and generating additional skilled jobs across technology and service sectors.
The focus on Tier 2 and Tier 3 cities like Nashik, Nagpur, and Chhatrapati Sambhajinagar promotes balanced regional development, reducing congestion in metro areas and stimulating inclusive economic expansion.
Other States With Similar Initiatives -
Karnataka: Karnataka became the first state to launch a dedicated Global Capability Centre (GCC) Policy 2024–29, aiming to establish 500 new GCCs, create 3.5 lakh jobs, and generate a $50 billion economic output.
Telangana: Telangana, has attracted nearly 40% of India’s new greenfield GCCs in recent years. The state is developing a dedicated GCC policy to strengthen its ecosystem.
Things to watch out for –
Effective implementation of infrastructure development, especially timely establishment of GCC parks with future-ready facilities, will be critical for attracting high-value investors.
Gems And Jewellery Policy-
Source: Click Here
The Maharashtra Government approved a new gems and jewellery policy aimed at boosting businesses related to gold, silver jewellery, diamonds, and precious stones. The policy positions the state as the “Global Gem and Jewellery Hub” and the first state in the country with a dedicated policy for the sector.
Outlay – The government has allocated ₹ 1,651 crore for incentives under the policy’s initial implementation phase between 2025 to 2030, with an additional ₹ 12,184 crore set aside for the period from 2031 to 2050, bringing the total planned expenditure to ₹13,835 crore. For the FY 2025-26 ₹ 100 crore has been allocated to initiate early-stage implementation of the policy.
Targets -
Attract investments worth ₹ 1 lakh crore and create 5 lakh direct and indirect jobs.
Double the state’s exports in the gems and jewellery sector from $ 15 billion to $ 30 billion.
Incentives And Key Initiatives –
Financial incentives include a capital subsidy of up to 25% for new manufacturing units and a subsidy on power and water tariffs.
Skill development programmes and training centres will be established to upgrade workforce capabilities.
A single-window clearance system will expedite approvals and ease business operations.
Infrastructure support includes the development of dedicated industrial clusters and common facility centres with modern amenities.
Focus on innovation, technology adoption, and export promotion through trade fairs and international collaborations.
Relevance –
Gems and jewellery contribute 7% to the country’s GDP and 7.5% to Maharashtra’s GDP, with the state accounting for 47% of national exports in FY 2023-24, valued at $15 billion. The policy aims to modernise manufacturing, enhance skill development, and promote technologies such as lab-grown diamonds, blockchain traceability, and digital trading platforms.
It seeks to move the industry up the Global Value Chain by shifting from diamond cutting and polishing to producing high-value, branded jewellery and lab-grown diamonds. Financial incentives, capital subsidies up to 25% for new units and concessions on power and water tariffs, will boost the state’s competitiveness against hubs like Surat.
A large number of manufacturers from other states, including Gujarat, operate jewellery units in Maharashtra to avail the export-related benefits and incentives offered under the state’s policies.
Historically, much of India’s jewellery industry has focused on the cutting and polishing segment. Expanding into high-value branded jewellery and lab-grown gem manufacturing is crucial for capturing higher profit margins and enhancing global competitiveness.
The 50% U.S. tariff on Indian gems and jewellery imports since August 2025 has led to a 40% decline in exports to the U.S., threatening nearly 1.7 lakh jobs nationwide and posing a significant challenge to Maharashtra’s ambitious ₹ 1 lakh crore Gems & Jewellery Policy aimed at boosting investment and employment in the sector.
Things To Watch Out For –
States like Gujarat can consider introducing similar policies to provide comparable benefits to their diamond industry. This would ensure that manufacturers can access export incentives and growth opportunities without needing to relocate their operations.
Slum Cluster Redevelopment-
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The Maharashtra Government approved a slum cluster redevelopment scheme to accelerate large-scale redevelopment of slum areas over 50 acres in Mumbai.
The scheme seeks to provide modern housing to familiesliving in slums, improving urban infrastructure and generating employment in construction and allied sectors.
Key Provisions –
Focused on slum clusters in Mumbai exceeding 50 acres.
Redevelopment projects will address families living in shanties and project-affected persons (PAPs).
The scheme encourages private investment and construction activity through joint ventures or private developers.
Identification and approval of slum clusters by concerned authorities including a high-level committee headed by the Additional Chief Secretary (Housing).
Floor Space Index (FSI) above 4 is permissible in special cases to accommodate PAPs or relocate slum dwellers from non-developable areas such as Coastal Regulation Zone (CRZ).
Private landowners may receive a developed plot equivalent in FSI at 50% of the land’s value. Alternatively, if the landowners refuse to give consent, the land will be acquired under the Land Acquisition, Rehabilitation and Redevelopment Act, 2013.
Added incentives for larger rehabilitation efforts under the scheme.
Relevance –
Although slum land in Mumbai dropped from 8% in 2005 to 7.3% in 2022, urbanisation in areas like Navi Mumbai and Mumbra has increased slum coverage by 35%. The new policy will better manage urban expansion and improve living conditions for slum residents.
This policy aims to unlock the locked economic value of prime slum land, transforming what was once informal occupation into legal, high-value real estate.
The scale of construction involved in these 50-acre-plus clusters will provide a significant and sustained stimulus to the construction and allied industries (steel, cement, labor supply). This is a direct measure to generate large-scale employment for skilled and unskilled labor in a sector that is a major contributor to the state’s Gross Domestic Product.
This incentive FSI allows private developers to build extra “free-sale” units, which they can sell in the open market. The revenue from these sales helps cover the cost of constructing free rehabilitation homes for slum dwellers.
Maharashtra’s Policy For Cancer Care-
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The Maharashtra Government has approved a comprehensive Cancer Care Policy to provide quality cancer treatment, research, and education across the state.
Outlay - ₹ 100 crore has been allocated as share capital to the Maharashtra Cancer Care, Research and Education (MAHACARE) Foundation.
Key Provisions -
Creation of MAHACARE Foundation to coordinate cancer care, research, and education statewide.
An expert executive board will be appointed for the day-to-day management of the MAHACARE Foundation.
Three-tier hospital network covering 18 hospitals across Maharashtra.
Provision of treatment services including radiotherapy, chemotherapy, surgery, and palliative care.
Access to postgraduate and super-specialty oncology programs.
Psychological support, physiotherapy, and drug facilities for patients.
Research, awareness, and lifestyle change initiatives for cancer prevention.
NGO participation to support palliative care and community outreach.
Revenue Model -
In addition to initial capital outlay, 20% of the fees collected by cancer hospitals under the Mahatma Phule Jan Arogya Yojana (MPJAY) will be directed to the foundation.
The MAHACARE Foundation will raise funds through clinical trials.
Funds will also be sourced from international organisations, donations, grants, and corporate social responsibility (CSR) contributions to support cancer care.
Central Scheme Alignment -
The policy aligns with the Union Budget directive to set up cancer care centres in all district hospitals within three years.
Relevance -
Maharashtra has seen an 11% increase in cancer patients since 2020. The policy aims to help reduce this burden through structured care and early intervention.
MAHACARE relies on reimbursements from MPJAY claims and private investment for clinical trials. If these sources underperform, the state would need to increase its recurring expenditure to maintain the network.
The introduction of postgraduate and super-specialty oncology programs is a critical long-term measure to address India’s acute shortage of trained oncologists, which is fewer than 2,000.
Bamboo Industrial Policy 2025-
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The Maharashtra Government has approved the Bamboo Industry Policy 2025 aiming to utilise bamboo for sustainable industrial growth, rural employment, and ecological balance.
Outlay -
₹ 1,534 crore for the implementation of the policy during 2025–30.
₹ 11,797 crore for a 20-year period to support long-term initiatives.
₹ 50 crore for the current financial year to initiate immediate activities.
Target -
To attract 50,000 crore investment over the next decade.
Generation of 5 lakh+ direct and indirect jobs statewide, with priority for rural artisans, farmers, and youth.
Deployment of advanced technologies like GIS, AI, blockchain, drones, and tissue-culture labs to build a modern bamboo value chain.
Establish 15 dedicated bamboo clusters across the state, and micro Common Facility Centres (CFCs) in remote areas to support artisans.
Support for farmer producer organisations (FPOs), contract farming, and usage of bamboo in energy, industry and domestic sectors
Bamboo cultivation on wastelands via public programmes (such as the MGNREGA scheme) and increasing production sustainably.
Pilot project worth ₹ 4,271 crore in partnership with Asian Development Bank to further Farmers Producers Organisation (FPO) activities, quality production, and grant support
Incentives -
Subsidies on interest, electricity, and stamp duty for bamboo-based units.
A venture capital fund of ₹ 300 crore is to be set up to support start-ups and MSMEs in the bamboo sector.
Central Initiative Alignment - The policy is aligned with the National Bamboo Mission which supports bamboo cultivation, processing, and product development through nurseries, treatment units, and skill training, creating rural livelihoods and boosting value-added bamboo industries.
Relevance -
By 2030, the global bamboo market is projected to reach USD 88.43 billion (approximately ₹ 7.34 lakh crore).
In India, the bamboo sector currently accounts for 2.3% of global exports, with a domestic industry worth ₹ 28,000 crore, covering about 4% of the country’s forest area and producing nearly 32.03 lakh tonnes annually.
Maharashtra, ranks third in India with around 1.35 million hectares bamboo area. It produced 9.47 lakh tonnes in 2022. With the utilisation of available fallow land, the state’s production capacity has the potential to rise to nearly 157.12 lakh tonnes annually.
Promoting bamboo on wastelands through schemes like MGNREGA offers farmers a low-risk, highly profitable cash crop alternative (bamboo can yield returns thrice as lucrative as some traditional crops). This provides a reliable, non-seasonal income stream, which is crucial for poverty alleviation and reducing the financial vulnerability of the rural populace.
Bamboo is a powerhouse for carbon sequestration (sequesters up to 12 tons of CO2 per hectare annually). The policy is a strategic move to leverage this environmental benefit to enter the global carbon credit market.
B. Rajasthan
Viksit Rajasthan 2047-
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The Rajasthan Government has unveiled a long-term vision document targeting to transform the state into a developed economy with a projected GDP of $ 4.3 trillion by 2047. The document is built on four pillars: agriculture, industry, tourism, and renewable energy, and outlines key goals related to social welfare, infrastructure, governance, and economic growth.
Targets And Thematic Structure -
$ 4.3 trillion state economy by 2047.
The vision document is structured into four main themes and thirteen sectors addressing rapid economic growth, social welfare, infrastructure development, and effective governance.
Central Scheme / Initiative Alignment - The vision is aligned with the national ‘Viksit Bharat @2047’ agenda and reflects a broader trend across states in India, where state Governments are formulating their own state-specific Vision 2047 documents to chart localized pathways toward contributing to India’s goal of becoming a developed nation by 2047.
Relevance -
The Rajasthan Government’s 2047 development plan aims to address this major challenge through projects like the RAM Jal Setu Link Project. This initiative is the most critical economic component as water scarcity could result in an estimated 6% loss of India’s GDP. The project is designed to ensure water security for over 3 crore people across seventeen districts and enable irrigation over 4 lakh hectares of land.
Such infrastructure developments will directly improve agricultural productivity, support industrial growth, and enhance the quality of life, making the state more resilient to climate-related stresses.
The state is making a massive investment in climate resilience and de-risking its agriculture and allied sectors (which contributes ∼27% of GSDP). This water assurance is fundamental to attract industrial and renewable energy investments.
Consequently, water availability will foster sustainable and inclusive economic growth, helping Rajasthan achieve its ambitious target to become a developed state with a $ 4.3 trillion economy by 2047.
C. Kerala
Kerala’s Vision 2031-
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Kerala’s Vision 2031 sets out comprehensive multi-sector policy goals across the IT industry, industrial development, sustainable power generation and universal health coverage, targeting transformation of the state into a knowledge-driven, industrialised, and sustainable economy by 2031.
Target –
Generate $ 50 billion in economic value and create 5 lakh (500,000) high-value jobs in IT, Electronics, Semiconductors, and Emerging Technologies.
Attract ₹ 20,000 crore in startup investments, nurture 20,000 startups, and develop 30 million sq. ft. of IT office space.
Establish 120 Global Capability Centres (GCCs) and host 250 Animation, Visual Effects, Gaming, and Comics (AVGC) companies to capture 10% of national IT market.
By 2030–31, the aim is to increase internal power generation, upgrade hydro capacity, boost renewable usage, and meet the estimated demand of 10,000 MW.
Thorium reserves, green hydrogen, and mass e-mobility will be integrated to reduce dependence on imports.
Achieve universal health coverage, ensuring every family receives ₹ 5 lakh in insured treatment by 2031. Decentralise speciality medical services, provide cancer screening and epidemic intelligence, and position Kerala as a global health hub.
Incentives -
Each family is entitled to ₹ 5 lakh free treatment under Karunya Arogya Suraksha Padhath (KASP).
Free mass screening for lifestyle diseases, cancer, and preventive care along with advanced facilities and data-driven epidemic response.
Relevance -
Kerala’s Vision 2031 represents a critical strategic pivot addressing critical structural challenges: youth unemployment at 29.9% (nearly 3x national average of 10.2%), with female youth unemployment at 47.1%. The state faces fundamental economic challenges as social successes have not translated into economic dynamism. The Vision’s focus on development of IT and industrial development leverages the highly skilled youth of Kerala who seek white-collar jobs.
The state relies heavily on electricity imports, accounting for more than 80% of power consumption and costing ₹ 10,941.59 crore in FY 2023-24, limiting industrial development. The 5,000 MW renewable capacity target (2,500 MW decentralised solar) by 2030 addresses this critical deficit and enables affordable, reliable power for attracting and sustaining industrial investment.
Kerala achieved exceptional health outcomes and Vision 2031’s achievement of universal health coverage by 2031 through expanded KASP (₹ 5 lakh per family, now covering 41.99 lakh families with additional ₹ 250 crore allocation) focusing on chronic disease prevention and integrated care, addressing the next frontier of health system development.
The policy is a strategic attempt to capture the “diaspora dividend” and the intellectual capital of Kerala’s highly educated youth. By targeting 5 lakh high-value IT/GCC/AVGC jobs, the state is shifting its economic base from low-value, informal services to high-value knowledge services, maximizing the Gross Value Added (GVA) per worker.
ESG Incentive Policy, 2025-
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The Kerala Government has introduced an environmental, social, and governance (ESG) policy to incentivise businesses that demonstrate compliance with ESG standards.
Kerala has become the first Indian state to formally integrate ESG principles into its industrial policy, establishing a comprehensive framework to guide sustainable and responsible industrial growth.
Salient Features -
An ESG reporting framework will be designed in alignment with national standards like the Business Responsibility and Sustainability Report (BRSR) and global standards like the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD).
Micro, Small and Medium Enterprises (MSMEs) will receive targeted support, including certification and market entry, under a “Zero Defect, Zero Effect” approach.
Incentives -
100% reimbursement of capital investment for five years to reduce effective tax liability for ESG-compliant businesses.
10% subsidy on fixed capital investment, subject to a ceiling of ₹ 50 lakh.
20% margin preference in Government procurement for ESG-compliant local enterprises.
Implementation Framework -
The policy is valid for a period of five years (i.e, from June 2025 to 2030), subject to continuous review and sectoral adaptation.
Statewide targets: 100% renewable energy adoption by 2040 and net carbon neutrality by 2050.
The implementation of the ESG policy will be coordinated by multiple departments, with Kerala State Industrial Development Corporation (KSIDC) serving as the nodal agency.
Relevance -
Encourages MSMEs to align with the “Zero Defect, Zero Effect (ZED)” mission, promoting cleaner production, quality standards, and ESG compliance to enhance competitiveness and resilience in government and export markets.
The policy is a strategic play to access the vast pool of global ESG-aligned capital. Global ESG assets crossed $ 30 trillion in 2022 and are expected to grow beyond $ 40 trillion by 2030. This would make up over 25 % of global assets under management.
ESG funds in India have a growing Assets Under Management (AUM) of nearly ₹ 10,946 crore, showing strong investor interest and resilience.
Security and Exchange Board of India (SEBI) introduced the ESG bond framework 2025, which covers ESG debt securities like social, sustainability, and sustainability-linked bonds and requires issuers to disclose ESG information in offering documents and annual reports for transparency. This reflects India’s growing focus on sustainable and responsible investing.
By aligning its reporting framework with global standards, Kerala is de-risking its industrial base and making it immediately attractive to institutional investors and foreign asset managers.
D. Goa
Goa Startup Policy, 2025-
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The Goa Government has launched the Goa Startup Policy 2025, which aims to turn the coastal capital into “India’s Creative Capital.”
Vision - To establish Goa as a premier startup destination by 2028.
Target –
Establish 1,000 startups in Goa by 2028;
Generate 10,000 jobs for Goan residents within startup ventures;
Enable 100 startups to access venture funding;
Collaborate with 50 startups across Government and industry stakeholders.
Incentives –
Support for setting up IT labs, maker labs, centres of excellence, and innovation centres via Government-private collaboration.
Reimbursement of significant costs for startups participating in Government-supported exhibitions and shows.
Dedicated mentoring and funding programme supporting women entrepreneurs, including monthly allowances.
Public Investment Planned –
Investment largely directed toward building infrastructure and support systems such as incubation centres, innovation labs, and ecosystem linkages with academic institutions.
Startups registered under The Department for Promotion of Industry and Internal Trade (DPIIT) and Startup India programmes benefit from additional support, including regulatory exemptions and mentorship platforms.
Relevance –
Startups in Goa grew from 12 in 2017 to 651 in 2025. Out of these, 310 were led by women, reflecting rising diversity and inclusivity within the expanding startup ecosystem of Goa.
The policy is aligned with the vision outlined in the Goa Sankalp Patra 2022 (BJP election manifesto), which featured a dedicated section on Startups, Entrepreneurship, and Employment. The manifesto set the goal of making Goa the startup capital of the country.
The biggest economic hurdle in Goa is the high cost of real estate and living. The policy offers incentives to attract “location-independent talent,” betting that Goa’s lifestyle dividend (beaches, low-stress environment) outweighs the cost advantage of Tier-2 cities like Nagpur or Coimbatore.
The low cost of subsidies is justified by the high return on investment from intellectual property creation and knowledge services.
The policy primarily focuses on developing the coastal ecosystem and revitalising tourism. It aims to achieve this by diversifying beyond the traditional tourism-based economy towards a more comprehensive, innovation-driven model, supporting entrepreneurship through scholarships, incubation support, and sector-specific incentives.
E. Uttar Pradesh
Uttar Pradesh Prepaid Smart Meter Policy-
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The Uttar Pradesh Power Corporation Limited (UPPCL) has mandated that all new electricity connections in the state (except agricultural consumers) will be issued exclusively with prepaid smart meters, aligning with the Central Government’s guidelines. Existing postpaid smart meters are planned to be gradually replaced with prepaid variants across the state.
Coverage -
The policy applies to all new electricity connections in designated areas where smart meters are prioritised, except agricultural consumers.
Aims to extend to the entire 3.7 crore consumer base of Uttar Pradesh, excluding approximately 13 lakh agricultural connections.
Phased replacement plan to convert existing 40 lakh postpaid smart meters to prepaid smart meters.
Central Scheme/ Initiative Alignment - Aligns with the Smart Meter National Programme (SMNP) and Revamped Distribution Sector Scheme (RDSS), which advocates nationwide smart meter adoption to improve energy efficiency and grid management.
Relevance -
Uttar Pradesh has installed over 40 lakh smart meters so far, working toward a target of 2.73 crore installations statewide. Historically, the state suffers from one of the highest Aggregate Technical & Commercial (AT&C) losses in India, but it has made significant progress, reducing losses from 31.1% in FY 2021-22 to 16.39% in FY 2023-24, now nearly on par with the national average of 16.12%. As the adoption of smart meters improves, the DISCOMs of U.P. are positioned to achieve even greater reductions in AT&C losses.
The traditional billing model exposes already loss-making DISCOMs to risks from delayed payments, under-recovery compounding their financial stress. With prepaid smart meters, consumers pay in advance, directly improving revenue realisation. This shift is expected to generate significant cumulative revenue, national estimates suggest smart meters could add up to ₹ 4.5 lakh crore in additional collections over the next 7 years.
While the Revamped Distribution Sector Scheme (RDSS) provides substantial central funding support, a portion of the implementation cost is shared with consumers. The ongoing legal proceedings initiated by the UP Rajya Vidyut Upbhokta Parishad over the recovery of ₹ 6,000 per meter reflect the policy’s evolving economic and regulatory considerations.
F. Karnataka
Karnataka State Skill Development Policy-
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The Karnataka Cabinet has approved a new Skill Development Policy, aimed at scaling up workforce skilling and employment opportunities across the state.
Outlay –
₹ 4,432 crore for a duration of seven years.
It will draw ₹ 1,386 crore from external aid, including the Asian Development Bank, and ₹ 410 crore through public-private partnerships.
Key Features -
Upgrades and new centres for technical training institutes across Karnataka.
Strong monitoring and evaluation framework with 5% budget earmarked for outcome tracking.
Partnerships with global certification providers, support for language training (notably German) and migration assistance.
Relevance -
Although the Department of Skill Development and Livelihood was established in 2017, there was no skill development policy. This policy ensures that the skill programmes are not fragmented across multiple departments.
The incorporation of ₹ 1,386 crore from the Asian Development Bank (ADB) and ₹ 410 crore through PPP models is vital for ensuring the programme’s fiscal sustainability and stability.
Karnataka already operates the Karnataka German Multi Skill Development Centre. The targeted emphasis on German language training and migration support further serves as a strategic mechanism to promote “brain circulation.”
By prioritising international mobility and globally recognized certifications, the initiative enhances the competitiveness of the state’s talent in the global market. This strengthens Karnataka’s soft power and reinforces its reputation not only as India’s “Silicon Valley” but also as a hub for high-quality, internationally trained human capital.
G. Punjab
Mental Health Policy-
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Punjab Government has launched its State Mental Health Policy to guide mental health initiatives across the state.
Coverage –
Special focus on vulnerable groups such as women, with gender-sensitive, confidential, and empathetic mental health care.
Outreach to crisis-affected populations, providing psychological support after emergencies like floods and conflicts.
Incorporation of mental health support services in prisons through intervention programmes covering multiple jails.
Collaboration with NGOs and social sector bodies for community-based care and de-addiction programmes.
Central Scheme Alignment –
The policy aligns with the Central Mental Healthcare Act, 2017.
Also aligns with the National Tele Mental Health Programme (NTMHP) in 2022, offering 24x7 tele-mental health counselling across states, which aims to expand access to quality mental health care equitably.
Relevance –
Addresses the mental health service gaps that are significant, with treatment gaps ranging from 28% to 83%, especially in rural and underserved areas due to stigma, lack of resources, and few mental health professionals. Untreated mental health conditions are estimated to cost the global economy over ₹ 1 lakh crore every year in lost productivity. By making early intervention accessible, the Government is making a direct investment that yields a high Return on Investment (ROI) by reducing absenteeism, “presenteeism” (working while being unwell), and long-term disability claims.
In prisons, mental health issues are prevalent but poorly addressed; community-based and NGO-focused intervention programmes have been shown to improve access, reduce stigma, and provide essential psychological support in correctional facilities.
Incorporates modern technology, evidence-based care, and research collaborations with institutes like ICMR and NIMHANS, ensuring a scientific approach.
H. Rajasthan
Financial Approval To Boost Religious Tourism-
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The finance department of the state Government granted financial approval of ₹ 23 crore to the tourism department for the renovation of a religious tourist destination.
Target –
Boosting religious tourism in Rajasthan by renovating, beautifying, and developing major religious tourist destinations.
Promote heritage tourism, with a specific focus on Jaipur’s iconic sites.
Outlay –
₹ 23 crore approved by the finance department for religious tourism destination development and renovation.
Over ₹ 4.35 crore was separately approved for the conservation and development of Nahargarh and Amer as iconic tourist destinations.
Key Initiatives And Incentives –
Special initiatives like Senior Citizen Teerth Yatra Yojana offer free pilgrimage travel to elderly citizens, promoting inclusive access to religious tourism.
Incentives for improving visitor amenities, including infrastructure upgrades, cleanliness, accommodation, and transportation facilities.
Initiatives to integrate cultural, spiritual, and wellness tourism with facilities for yoga, meditation, and retreats.
Promotion of religious tourism as a year-round activity through events, festivals, and off-season travel promotions.
Central Scheme/Alignment – Alignment with the Ministry of Tourism’s Swadesh Darshan and PRASHAD schemes, which fund integrated religious circuit development and pilgrimage destination rejuvenation.
Relevance –
In the year 2024, Rajasthan saw 23 crore domestic tourists and 20 lakh foreign tourists, with Sikar alone witnessing 2.76 crore visitors primarily for its temples and religious sites. Religious tourism circuits Ajmer, Pushkar, Chittorgarh, and Jaipur contribute majorly to these numbers, underlining the importance of targeted investments.
The investment in religious tourism is a key political strategy to connect with the electorate. However, the use of initiatives like the Senior Citizen Teerth Yatra Yojana and the reported development of a ‘Sarva Dharma Sambhav’ (religious pilgrimage circuit) signals an attempt to frame the investment within an inclusive, welfare-oriented narrative that appeals across different religious communities.
Investment in religious tourism infrastructure is efficient, as pilgrims typically have steady visitation patterns, which support local economies through sustained demand for hospitality, transport, and ancillary services. Upgrading “last mile” infrastructure, including cleanliness, amenities, and parking, enhances visitor experience
The integration of wellness (yoga/meditation) is a strategic move to capture the high-value wellness tourism market. India’s wellness tourism sector is valued at $ 19.43 billion in 2024 and is projected to reach $ 29.88 billion by 2031. It is attracting both domestic and international travelers seeking holistic health experiences such as Ayurveda, yoga, and meditation.
I. Odisha
Draft State Cooperative Policy-
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The Odisha Government has released a draft state cooperative policy to strengthen Odisha’s cooperative movement.
The policy aims to make the movement a driver for inclusive rural development, supply chain improvement, and farmer empowerment at scale.
Target –
Establishment of Primary Agricultural Cooperative Societies (PACS) in all 6,794 panchayats by 2030, and central cooperative banks in all 30 districts.
Creation of 30 model cooperative villages (one per district) and sectoral cooperative clusters (millets, dairy, fisheries, coffee, etc.) by 2036.
Launch of a strong umbrella “Utkal/Kalinga Brand” to showcase Odisha’s cooperative products.
Public Investment Planned –
State-run cooperative marts/outlets in major cities and a dedicated Odisha cooperative e-commerce portal (“Odisha Mart”).
State-level cooperative data centre and digital stack, integrating cooperative membership and asset records with the national Cooperative Stack.
Central Scheme / Initiative Alignment –
Alignment with the National Cooperative Policy 2025 and “Sahakar se Samriddhi” mission.
Relevance -
The draft policy’s push for universal PACS coverage in all 6,794 panchayats by 2030 will ensure financial, input, and service last-mile delivery. However, a critical risk is the high incidence of Non-Performing Assets (NPAs).
The integration of a state-level cooperative digital stack with the National Cooperative Database and the launch of the “Odisha Mart” e-commerce portal are moves toward digital formalisation. This will reduce administrative costs, improve transparency in loan disbursal, and link rural products directly to city and national markets (e.g., Open Network for Digital Commerce (ONDC).
III. Social Sector Schemes
A. Haryana
Deen Dayal Lado Lakshmi Yojana-
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The Haryana Government has launched the Deen Dayal Lado Lakshmi Yojana to provide monthly financial assistance of ₹ 2,100 to women. The scheme was part of the BJP’s election manifesto for Haryana.
Financial Outlay - ₹ 5,000 crore for the year 2025-26.
Eligibility -
Women should be within the age bracket of 23–60 years;
Women must be permanent residents of Haryana;
For married women, husband (or she) must have domicile/residence for 15 years in Haryana
Applicants should not be employed in Government service;
Applicants must have an annual family income below ₹ 1.8 lakh;
Priority will be given to widows, single women, and women belonging to deprived households.
Implementation Components -
The scheme will be rolled out by the Department of Women and Child Development.
Beneficiaries will be verified through Parivar Pehchan Patra (PPP).
The online application portal and the Lado Lakshmi mobile app for registration and verification have been integrated with the state’s citizen database.
There is no cap on the number of eligible women from the same family. However, women who are already receiving financial assistance under certain existing Government schemes are excluded from the benefits of this scheme.
The scheme marks a shift towards direct financial empowerment for women, aligning with Haryana’s gender-focused welfare approach.
It targets rural income disparity and gender gaps in access to savings and credit.
Financial Implications -
The recurring expenditure may add to the state’s fiscal commitments and increase the burden on the exchequer.
Further, since beneficiaries are low-income households, most funds may go toward consumption, generating a strong multiplier effect at the grassroot level.
Similar Initiatives In Other States -
Madhya Pradesh provides ₹ 1,250 per month to eligible women under the Mukhyamantri Ladli Behna Yojana.
Maharashtra offers the Mukhyamantri Majhi Ladki Bahin Yojana, providing ₹ 1,500 per month to eligible women.
B. Chhattisgarh
Chhattisgarh Chief Minister Rural Bus Service Scheme (CMRBS)-
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The Chhattisgarh Government has launched the Chief Minister Rural Bus Service Scheme aimed at providing public transport connectivity in remote, tribal-dominated villages.
Target –
Coverage And Operations: Phase 1 of the scheme will serve 250 villages across 11 districts in Bastar and Surguja divisions, operating 34 bus routes.
Connectivity Goal: The initiative aims to provide seamless transport from Gram Panchayats to district headquarters.
Public Investment Planned -
Viability Gap Funding (VGF) for bus operators to ensure financial stability and sustainability on low-profit rural transport routes.
Financial Assistance To Operators: ₹ 26/km in year 1, ₹ 24/km in year 2, and ₹ 22/km in year 3 for running bus services under the scheme.
Tax Exemption - Monthly tax exemption on permits to vehicle owners operating on rural routes for up to 3 years from permit issuance.
Concessions –
Full fare concessions for visually impaired persons with disabilities, senior citizens above 80 years, persons with AIDS, and their attendants.
Half-fare concession for people residing in Naxal-affected areas.
Priority for Scheduled Tribes, Scheduled Castes, Other Backward Classes, women, and Naxal-affected persons in beneficiary selection for operating permits.
Central Scheme/Initiative Alignment –
The scheme aligns with Chhattisgarh Government’s initiatives for rural development and tribal upliftment under integrated welfare programs like “Niyad Nellanar.”
Supported by joint central and state Government cooperation to improve infrastructure in Maoist-affected and tribal regions.
Relevance –
Improved connectivity will enhance rural access to healthcare, education, employment, and markets, fostering overall socio-economic development.
This also increases labor market access (allowing villagers to seek jobs in towns) and improves market efficiency for agricultural and forest produce, reducing post-harvest losses and potentially increasing farmer income.
The scheme is a cornerstone of the state’s “Vikas (Development) and Vishwas (Trust)” strategy in Naxal-affected areas.
C. Punjab
Mukh Mantri Sehat Yojna-
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The Punjab Government has started registrations for a universal health insurance initiative called Mukh Mantri Sehat Yojna, providing comprehensive cashless health coverage across the state.
Outlay - The scheme has been allocated ₹ 778 crore in the 2025–26 state budget.
Coverage -
All 65 lakh families in Punjab are eligible, regardless of income, age, or gender.
Coverage includes treatment in Government hospitals and over 500 empanelled private hospitals across the state.
The scheme encompasses over 2,300 health packages covering a wide range of medical conditions and surgeries.
Key Features -
The scheme offers over 2,300 health packages covering various medical conditions and surgeries.
The registration for the insurance scheme requires an Aadhaar card and voter ID, without any need to verify income.
Initial registration camps set up in Tarn Taran and Barnala, with plans to expand based on feedback.
Access to benefits is through a “Chief Minister Health Card” issued upon registration.
Relevance -
The previous health insurance schemes have not worked in Punjab with private hospitals not receiving timely payments., It is vital that private hospitals are taken into confidence for successful implementation of the scheme.
By offering cashless treatment to all 65 lakh families, the scheme can improve public health outcomes and reduce out-of-pocket medical expenses.
Extension Of Maternity Benefits To ASHA Workers-
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The Punjab Government has formally recognised Accredited Social Health Activist (ASHA) workers to be eligible for maternity leave.
The benefit will be extended under the Maternity Benefit Act, 1961, and aims to enhance social security and welfare for frontline community health workers.
Key Provisions -
ASHA workers will receive a fixed monthly honorarium during maternity leave.
Future amendments to the Maternity Benefit Act, 1961 will also apply to them.
Central Scheme Alignment –
Supports national commitment under the National Health Mission (NHM) to empower community health workers, including ASHA, under social security provisions.
Relevance –
As of September 2024, Punjab has over 19,295 ASHA workers, contributing to a national cadre of more than 10.3 lakh. Recognising their work under the Maternity Benefit Act, 1961 marks a progressive step toward treating their essential health service as legitimate labour.
Evidence shows that paid maternity leave reduces infant mortality by 7.9 deaths per 1,000 live births, increases pediatric visits and timely immunisations, and supports longer breastfeeding durations. By extending maternity leave to ASHA workers, the state invests in the health of both mother and child while strengthening the quality and stability of its own community health system.
This move sets a legal precedent that may be leveraged by ASHA workers’ unions and lawyers to demand full “employee” status.
D. Karnataka
Domestic Workers (Social Security and Welfare) Draft Bill, 2025-
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The Karnataka Government has introduced a draft Bill on domestic workers’ employment, aiming to provide social security, welfare, and labour rights to domestic workers statewide.
Stakeholder -
All domestic workers in Karnataka, including full-time, part-time, casual, gig, and migrant workers, regardless of whether employed directly, through contracts, or via digital platforms.
Employers and placement agencies engaging domestic workers for households or premises.
Key Provisions -
Mandatory written employment agreement between employer and domestic worker, specifying key terms such as work type, hours, wages, and benefits.
Maximum working hours: 48 hours per week; workers entitled to one weekly holiday or two half-day holidays.
Entitlement to reasonable work hours, rest periods, annual leave, and maternity benefits.
The State Government will fix and periodically revise minimum wages, ensuring equal pay without gender discrimination.
Mandatory registration of all domestic workers, employers, and placement agencies, with timelines for registration and reporting changes.
Governance and Financing-
Establishment of the Karnataka State Domestic Workers Social Security And Welfare Board which will administer a Social Security and Welfare Fund for domestic workers; the Board will include equal representation from domestic workers, employers, service providers/placement agencies and Government authorities.
The Fund will be financed by fees collected from registrations (workers, employers, service providers/ platforms) and up to 5% of welfare fees collected periodically.
Individuals found guilty of sending women or female employees for immoral purposes, mistreating or illegally confining domestic workers, or engaging children in domestic work may face imprisonment from three to seven years and a fine of up to ₹50,000.
For violation of other provisions (such as employing without agreement) the draft provides for up to three months’ imprisonment and/or fine.
Relevance -
Mandating a minimum wage and adding a compulsory welfare cess of up to 5% of wages significantly raises the Total Cost of Employment and distorts the market. This will compel cost-sensitive employers to reduce their hiring (e.g., shifting from two part-time maids to one full-time maid) or to seek services outside the formal registry.
The majority of Karnataka’s domestic workers (estimated to be around 6–7 lakh), are part of the informal urban services economy, with only a few registered on platforms like e-Shram. The Bill aims to formalise and register domestic workers, by creating a verified database of the workers. However, the process of formalisation will distort the existing informal labour market, potentially encouraging rent-seeking in registration and compliance while employers may continue to hire unregistered domestic workers to avoid new procedural or financial burdens.
E. Rajasthan
Free Seed Kit Initiative For Women Farmers-
Source: Click Here
The Rajasthan Government distributed 27.95 lakh free seed mini-kits to women farmers ahead of the 2025 Kharif season, aiming to boost crop productivity, self-reliance, and greater participation of women in agriculture.
Target -
Women farmers across Rajasthan, especially those from scheduled castes and tribes, small and marginal farmers, self-help groups, persons with disabilities, and women living below the poverty line.
Key Provisions -
As part of the 2025-26 Budget, the state Government will distribute about 27,95,337 free seed minikits for the 2025 Kharif season.
Recipients will receive free seeds for crops such as moong, moth, jowar, maize, bajra, groundnut, and soybean to foster quality and yield improvements.
Agricultural supervisors will provide hands-on guidance on crop selection, sowing methods, and crop management to maximise productivity.
Priority for marginalised farmer groups and women ensures direct, fair access to inputs and knowledge.
Jan Aadhaar cards will be used for transparent registration and benefit tracking.
Relevance -
Only 11.72% of India’s total operated agricultural area is managed by a female operational holder. In Rajasthan, women account for around 10% of operational holders. Their limited land ownership restricts access to institutional credit, crop insurance, and input subsidies. (This is evident from the fact that just 11.8% of women farmers in Rajasthan were enrolled under Pradhan Mantri Fasal Bima Yojana (PMFBY) 2020–21 and 36.3% benefited from PM-KISAN).
The state’s distribution of 27.95 lakh free seed mini-kits exclusively to women farmers directly addresses these disparities by improving access to quality seeds, providing agronomic support, and ensuring transparent, digital benefit tracking through Jan Aadhaar. This initiative strengthens women’s economic inclusion, enhances productivity and climate resilience, and supports the broader goal of gender-equitable agricultural growth in Rajasthan.
F. Assam
The Assam Satra Preservation And Development Commission Bill, 2025-
Source: Click Here
The Assam Cabinet approved The Assam Satra Preservation and Development Commission Bill, 2025, to safeguard the state’s Vaishnavite heritage institutions, known as the “Satras.”
Objective - The Bill seeks to protect Satra lands from encroachment, resolve property disputes through an independent statutory body, and promote heritage-linked economic growth through tourism and Satriya cultural preservation.
Key Provisions -
The Bill proposes setting up a dedicated Commission to be known as the Assam Satra Preservation and Development Commission.
The Commission will look over all registered Satra institutions across Assam. It will formalise management, land ownership, and protection mechanisms under Government oversight, while involving Satra representatives and experts.
The Commission may function in a quasi-judicial or tribunal-like capacity, to examine Satra land matters before escalation. It will have powers equivalent to a civil court for dispute adjudication and will direct district administrations on enforcement actions related to Satra lands.
The Bill gives special attention to land‐related issues of the Satras: securing land titles; protecting lands from encroachment; intervening in disputes before regular courts.
The Bill calls for creation of a digital repository for Satra lands, artefacts and manuscripts, making them accessible and preserving heritage.
Relevance -
The Bill’s approval is part of a broader agenda of the Assam Government to institutionalise and protect the state’s religious and cultural heritage, especially the Vaishnavite Satra institutions.
The Bill arrives against a backdrop of reported large‐scale encroachments on Satra lands: e.g., over 4,400 acres of Satra-land across Assam were flagged for recovery by the Government.
Granting the Commission quasi-judicial power is a critical governance reform. It creates a specialised, pre-court adjudication forum for land disputes and eviction orders. This process is intended to be faster and more culturally sensitive than the overburdened regular courts, thereby reducing the risk of localised violence and political conflict associated with forced evictions.
The Bill leverages the unique cultural assets (Sattriya dance, Borgeets, manuscript repositories) to attract high-value cultural and spiritual tourism (often considered less volatile than general leisure tourism).
The Bill does not regulate the internal functioning or spiritual practices of the Satras. Instead, it focuses on protecting their physical and cultural assets, ensuring supportive rather than intrusive state involvement. This positive approach preserves Satra autonomy while strengthening institutional support for safeguarding Assam’s Vaishnavite heritage.
III. Other Decisions:
A. Assam
Unified Pension Scheme-
Source: Click Here
The Assam cabinet approved the implementation of the Unified Pension Scheme (UPS) for state Government employees.
Eligibility And Pension Benefits -
Employees with 25 years of service are eligible for a guaranteed pension equivalent to 50% of the average basic pay drawn during the last 12 months of service, similar to the Old Pension Scheme (OPS).
Employees with 10 years of service can receive a pension of ₹ 10,000 per month along with Dearness Allowance (DA) and other applicable benefits.
Newly recruited employees can choose between UPS or New Pension Scheme (NPS) at the time of joining.
Family Pension -
In the event of a pensioner’s death, 60% of the pension amount to be received by the employee is provided to eligible family members as a family pension.
Central Scheme / Initiative Alignment –
Aligned with the Unified Pension Scheme, introduced by the Central Government on August 24, 2024, came into effect from April 1, 2025.
Relevance -
It incorporates key, highly-demanded features of the OPS (i.e., specifically, a guaranteed pension (50% of the last average basic pay) and a guaranteed minimum pension (₹10,000 per month), while maintaining the contributory, funded structure of NPS). This structure is intended to address employee demands for assured financial security post-retirement without the severe fiscal burden of the unfunded OPS.
The move brings Assam’s pension framework in line with the Central UPS, ensuring parity in retirement benefits between Central and State Government employees. Maharashtra has already adopted the Central UPS model, signaling a broader shift among states toward harmonised pension systems.
Two-Child Policy Exemption For Selected Communities-
Source: Click Here
The Assam Government has scrapped the two-child norm for members of tribal, tea tribe, Moran, and Motok communities with respect to eligibility for Government jobs.
Objective - The decision aims to prevent demographic decline among these indigenous and micro-communities and protect their cultural and social identities.
Context -
The two-child policy was introduced under the Assam Public Services (Application of Small Family Norms in Direct Recruitment) Rules, 2019. It came into effect in January 2021 and bars individuals with more than two children from eligibility for state Government jobs.
The rule was earlier extended to panchayat elections through a 2018 amendment to the Assam Panchayat Act, 1994. This made it mandatory for candidates to meet the two-child norm, have minimum educational qualifications, and possess functional sanitary toilets.
Key Provisions -
The exemption applies to tribals, tea tribes, Morans, and Motoks, communities that are classified as indigenous groups with small or declining populations.
The two-child policy under the Assam Public Services (Application of Small Family Norms in Direct Recruitment) Rules, 2019, will continue to apply to other communities.
Relevance -
The Moran community has an estimated population of only 1 lakh. The survival of these micro communities would be at risk if the two-child policy continued to apply. The exemption protects such endangered indigenous identities from demographic extinction, preserving Assam’s cultural heritage.
The exemption is a signal that while the state may eventually link welfare benefits to the two-child norm for the general population, it will fiscally shield indigenous communities. This is a key political trade-off that recognizes the low socio-economic status and vulnerability of these groups, who often rely on Government welfare and may not have the luxury of informed family planning decisions.
The exemption directly increases the labor supply and human capital pool available for Government jobs from historically marginalized groups, such as the Tea Tribes and Scheduled Tribes (STs). This is a crucial economic intervention that addresses the historical underrepresentation of these communities in the formal sector and provides a mechanism for upward mobility.
B. Uttarakhand
Green Cess For Vehicles Coming From Different States-
Source: Click Here
The Uttarakhand Government will begin implementation of Green Cess on vehicles entering the state from outside starting from 1st December, 2025.
Objective - To combat air pollution and enhance green infrastructure.
Key Provisions-
Applies to all non-Uttarakhand registered vehicles entering the state. However, electric, hydrogen, solar, and battery-operated vehicles are exempted.
The cess is expected to generate ₹ 100 crore annually, which will be used for air quality monitoring, road dust control, green zones, and smart traffic systems, funding broader pollution control and green infrastructure projects.
Relevance -
Road dust contributes to 55% of air pollution in Dehradun, followed by vehicular emissions at 7%. The Green Cess will not only help curb pollution from out-of-state vehicles but also generate dedicated revenue to invest in air quality monitoring, road dust control, green zones, and smart traffic systems.
The cess is primarily aimed at non-Uttarakhand registered vehicles, which constitute a massive inflow. A critical analysis questions the elasticity of tourism demand in response to this price increase. If the cess is too high, it may deter budget tourists, which would negatively impact the tourism-dependent local economy. However, the use of FASTag for automated collection is a low-friction method designed to maximize revenue collection and minimize leakage.
C. Maharashtra
Additional Electricity Sales Tax For Industry and Commercial Consumers-
Source: Click Here
The Maharashtra Cabinet has approved increasing the additional electricity sales tax for industrial and commercial consumers by 9.90 paise/unit, bringing the new rate to 20.94 paise/unit.
Target – The hike aims to generate dedicated funds for solar agricultural pump schemes under the Pradhan Mantri Kusum program, and other schemes for farmers.
Key Provisions –
Imposition of an additional electricity sales tax on industrial, commercial, and select other consumers purchasing power from utilities such as Reliance Energy, Tata Power, Mahavitaran, and others.
Targets better financial sustainability for funding renewable energy projects, specifically 6.5 lakh solar agricultural pumps planned under the PM Kusum scheme by March 2026.
Projected Revenue Generation – The additional tax has been increased by approximately 10 paise per unit. This doubles it from the earlier 11.04 paise to about 20.94 paise per unit. This is expected to generate around ₹ 834 crore annually for solar pump installations.
Relevance –
Maharashtra spends around ₹ 14,760 crore annually to provide free electricity, while Distribution Companies (DISCOMs) face financial stress from unpaid dues exceeding ₹ 65,565 crore (with agricultural pump consumers accounting for a substantial portion of this amount).
The hike nearly doubles the additional tax to 20.94 paise per unit, raising power costs for industrial and commercial users by about 1%. This deepens the cross-subsidy burden and could erode Maharashtra’s industrial competitiveness.
Motor Vehicle Aggregator Rules, 2025-
Source: Click Here
The Maharashtra Government has introduced draft rules under the Maharashtra Motor Vehicle Aggregator Rules, 2025, to regulate app-based cab services such as Ola, Uber, and Rapido, aiming to enhance transparency, passenger safety, and service quality.
These rules seek to improve passenger confidence, enhance service quality, and protect driver welfare by formalising working hours, introducing mandatory training, capping surge pricing, mandating travel insurance, and enforcing vehicle safety standards.
Target –
Increase public confidence, improve service quality, and prevent exploitation of drivers.
The regulations require operators to maintain safety standards, including mandated driver training of 30 hours and restricted vehicle age limits.
Mandatory passenger travel insurance up to ₹ 5 lakh. These measures promote safety and fair labor practices in the ride-hailing industry.
Key Provisions –
Aggregators give ₹ 10 lakh security deposit for up to 1,000 vehicles, ₹25 lakh for 1,001 to 10,000 vehicles, and ₹ 50 lakh for more than 10,000 vehicles.
Work a maximum of 12 hours per day with at least 10 hours of rest and must complete 30 hours of training.
Vehicles must not exceed 9 years for cabs and auto-rickshaws and 8 years for buses.
Surge pricing is capped at 1.5 times the base fare, and fares cannot drop below 75% of the base fare during low demand.
Alignment With Central Policy - Builds on the national Motor Vehicles Aggregator Guidelines, 2025, issued by the Central Government under the provisions of the Motor Vehicles Act, 1988.
Relevance –
Nearly 85% of platform-based workers reported working more than 8 hours a day, while around 25% work for 12 hours or more to meet income needs. The new rules will help regulate these extended working hours, ensuring that drivers’ health, safety, and rest requirements are not compromised.
However, this regulation could also reduce total earnings, as even a one-hour reduction may carry a significant cost burden for gig workers whose daily income depends directly on time spent on the road.
The 1.5x surge price cap and 75% base fare floor significantly reshape the aggregator pricing model, which traditionally depended on higher surge rates (sometimes up to 4x) to manage demand-supply gaps and deep discounts to attract users. The new rules require aggregators to place greater emphasis on operational efficiency and driver engagement, instead of relying mainly on surge pricing or deep discounts.
E-Bond System For Import-Export-
Source: Click Here
The Maharashtra Government has launched an electronic bond (e-bond) system for import and export transactions, replacing physical ₹ 500 stamp paperbonds. Maharashtra becomes the 16th state in India to adopt this system, marking a significant step toward digital trade facilitation.
Target - With 3,000-4,000 bonds issued monthly (over 40,000 annually) for import-export operations, the system aims to capture and formalise all trade-related bond transactions while improving processing efficiency.
Centre Initiative Alignment - It aligns with the Central Board of Indirect Taxes and Customs (CBIC) ”Ekal Anubandh” initiative. This initiative introduces a Single All-India Multipurpose Electronic Bond (SEB) to replace transaction-specific bonds across different ports, providing seamless digital bond execution through ICEGATE portal integration.
Relevance-
Maharashtra’s e-bond implementation addresses critical challenges in customs administration and trade facilitation. As the second highest exporting state contributing 15.37% (₹ 5.56 lakh crore) to India’s total exports in FY 2023-24, the state handles substantial trade volumes requiring efficient bond processing.
The initiative supports India’s move towards full digitisation of customs by April 2026 through the Single Window Interface for Facilitating Trade (SWIFT) portal.
Reducing the customs clearance time by even a few hours for over 40,000 bonds annually will lead to substantial savings in demurrage, warehousing, and inventory costs for importers and exporters.
It addresses revenue leakage issues that previously occurred when traders Maharashtra registered in neighboring Gujarat and Karnataka due to lack of local e-bond facilities.
Data Centres To Generate And Distribute Renewable Power-
Source: Click Here
The policy allows data-centre parks and individual designated units in specified zones of Maharashtra to install captive renewable energy generation (solar/wind/hydro) and set up their own distribution network within those zones.
Target – The policy aims to support the rapidly growing data centre ecosystem, which requires uninterrupted 24×7 power supply. It seeks to improve the reliability of power, reduce dependence on the external grid, and promote the use of green and sustainable energy sources.
Key Provisions –
Data centres can set up captive renewable energy generation and internal power distribution systems within approved data centre zones.
Permitted energy sources include solar, wind, and hydro, ensuring that all captive generation is from renewable sources only.
Data centre parks and individual data centre units located in designated industrial areas, including Kurla, Chandivali, Marol, Thane, Navi Mumbai, and Panvel, are eligible.
Operators can apply to the Maharashtra Electricity Regulatory Commission (MERC) for a parallel distribution licence. This would enable them to distribute electricity within their own campus or notified zone.
Surplus renewable energy can be supplied or sold only within the same data centre zone, not externally to other areas.
Relevance –
With total data-centre capacity of the entire country projected to rise from around 1.3 GW in 2024 to 5 GW by 2030 (with investment exceeding US $ 20 billion), enabling captive green energy generation in Maharashtra helps scale this infrastructure sustainably and aligns with national clean-energy commitments.
The initiative directly supports the Maharashtra Data Centre Policy 2023, which aims to make Maharashtra a global leader in Information Technology (IT) and Information Technology Enabled Services (ITES) by attracting investment, creating jobs, and developing robust digital infrastructure.
Maharashtra’s data-centre ecosystem, already hosts around 60% of the total national capacity, largely concentrated in Navi Mumbai. By permitting captive renewable power generation and in-zone distribution, the policy ensures sustainable 24×7 electricity supply, addressing one of the sector’s bottlenecks.
D. Kerala
Ban On The Sale Of Medicines For Children Under 12 Without Prescription-
Source: Click Here
The Kerala Health Department has directed that there shall be no sale of medicines for children under 12 without a doctor’s prescription.
Target – To safeguard the health of children under 12 by regulating and tightly controlling the sale and administration of medicines.
Context - This proactive action is a response to the death of children in Madhya Pradesh linked to contaminated cough syrups
Salient Feature –
No medicines can be given or sold to children under 12 without a valid doctor’s prescription.
Dispensing medicines based on old prescriptions is also prohibited to ensure accurate dosing.
Establishment of a three member expert panel including the state drugs controller, child health nodal officer, and President of the Indian Academy of Paediatrics to study paediatric cough syrup use and formulate guidelines.
Ban on sale of medicines from implicated manufacturers and suspension of sales of the SR-13 batch of Coldrif syrup in Kerala.
Strengthened awareness campaigns to educate the public on safe medicine use for children and training programmes for paediatricians and doctors
Active drug inspections led by the state Drugs Control Department.
Relevance –
The decision follows the death of fourteen children in Chhindwara, Madhya Pradesh, reportedly due to suspected renal failure caused by a toxic cough syrup.
The World Health Organisation has highlighted a “regulatory gap” in India’s oversight of domestically sold pediatric syrups. A study in rural Sri Lanka found that medication errors caused 14.2% of acute poisoning events in children. The ban closes these gaps by restricting over the counter (OTC) sales for children under 12, banning unsafe formulations, and strengthening market surveillance.
By enforcing prescription-based dispensing, expert oversight, and awareness campaigns, the initiative reduces dosing errors, and safeguards child health.
Kerala Retracts Back On PM-SHRI Implementation-
Source: Click Here
The Kerala Government had signed an MoU on PM-SHRI implementation with the Central Government after two years of resistance. However, soon after formalising participation, the state Government has paused its implementation and has formed a cabinet sub-committee to review it, following internal concerns and alliance objections.
Outlay - If implemented, the state will receive ₹ 1,476 crore in Central funding which includes two years of PM SHRI funding and ₹ 971 crore assured under Samagra Shiksha Kerala.
Central Scheme / Initiative Alignment - PM-SHRI is a centrally sponsored scheme linked to the National Education Policy, 2020 (NEP); the Sarva Shiksha Abhiyan (SSA) funding and PM-SHRI implementation are directly coordinated with the Central Ministry of Education.
Relevance -
The Government’s move of retracting back from implementing PM-SHRI highlights the complex interplay between fiscal imperatives and coalition politics. While funds under PM SHRI could markedly improve public school infrastructure reflects how coalition pressures can stall even well-financed reforms, with direct implications for future education outcomes.
E. Meghalaya
Notification Of The Rent A Motor Cab Operational Rules, 2025-
Source: Click Here
The Meghalaya Government has notified the Meghalaya Rent a Motor Cab Operational Rules, 2025, aimed at licensing and regulating motor cab rental services within the state.
Salient features –
Mandatory licensing for all motor cab rental operators holding tourist permits under Section 88(9) of the Motor Vehicles Act, 1988.
The license granted or renewed is valid for 5 years, with application and renewal managed by local licensing authorities.
Maintaining detailed records of each vehicle and special documentation when cabs are hired by foreign nationals.
Licensees must display emergency contact details and licensing authority information prominently in vehicles.
Training is mandated for licensees and staff in basic emergency response procedures.
The licensing fee is set at ₹ 10,000 per application for grant or renewal.
Relevance –
Provides a structured legal framework to regulate the motor cab rental sector in Meghalaya. The move is significant for Meghalaya’s tourism sector, where transport safety directly impacts visitor trust. Following a recent tourist murder case, it aims to address safety concerns, rebuild confidence, and reinforce the state’s image as a secure destination.
The new rules, while seemingly for safety, also serve a political-economic purpose by legitimising the regulation of out-of-state vehicles (many from Assam) that compete with local operators. By requiring strict local licensing and adherence to local rules, the Government has implicitly prioritised and formalised the rights of local tourist taxi unions who have been protesting the influx of outside competition.
F. Goa
Hike In Power Tariff-
Source: Click Here
The Joint Electricity Regulatory Commission (JERC) approved a 4% hike in the average annual power tariff for a consecutive 5 years (i.e. till 2030).
Key Provisions –
The tariff increase is between 25 to 38 paisa per unit for domestic and non-domestic consumers.
Tariff hike would be for electricity consumers, including domestic, non-domestic, and commercial users.
The revised tariff is intended to address increased procurement costs and improve the financial health of the Goa Electricity Department.
The revised tariff structure involves a slab-wise increase, affecting middle and higher slab users more.
Fixed charges for low-consumption domestic consumers have been maintained without an increase.
Low-tension consumers (except agriculture) may opt for a time-of-day tariff with smart meters.
Rationale –
Increased revenue collection for the electricity department to help manage rising power procurement costs and infrastructure investment.
The tariff revision aims at financial sustainability without imposing excessive burden on low-consumption consumers.
Relevance –
The Time-of-Day (ToD) tariff allows electricity prices to vary by time, with 10–20% lower rates during solar hours and 10–20% higher during peak hours. It encourages shifting electricity use to off-peak or solar hours, reducing bills and easing pressure on the grid.
By incentivising load shifting, the mechanism flattens peak demand, lowers reliance on costly peak-hour power, and enables better integration of renewable energy.
The framework of consecutive 5-year tariff hike, gives GED predictable revenue. The predictable revenue would allow GED to borrow for grid upgrade and other modernisation initiatives, reducing their upfront capital expenditure.
G. Andhra Pradesh
Operational Guidelines For Tourism Policy 2024–2029-
Source: Click Here
The Andhra Pradesh Government has released the operational guidelines for Tourism Policy 2024–29 to position the state as a leading tourism destination, drive private investment, and generate large-scale employment.
Target –
Attract ₹ 25,000 crore in private investment across hospitality, tourism infrastructure, and allied sectors over five years.
Creation of 3 lakh new jobs, double tourism sector’s GVA contribution to 8%, and raising direct employment to 15% of state total by 2029.
Development of 7 major tourism hubs and 25 theme-based circuits spanning spiritual, coastal, wellness, adventure, eco, and heritage tourism.
Incentives –
100% stamp duty reimbursement and waiver of land conversion charges;
Capital subsidy: 25% of Fixed Capital Investment (FCI) for MSMEs (up to ceiling); 10% for large projects;
GST and electricity duty reimbursements for eligible projects.
Relevance –
Andhra Pradesh’s tourism sector contributed 4.6% of the state’s Gross Value Added (GVA) and 12% of total employment. The Operational Guidelines for the Tourism Policy 2024–29 are designed to double GVA to 8% and raise tourism’s share of direct employment to 15% by 2029.
The tourism minister of Andhra Pradesh has acknowledged that Coastal Regulation Zone (CRZ) rules present a hurdle for tourism development in Andhra Pradesh. In this context, the policy’s emphasis on coastal and eco-tourism circuits, coupled with efforts to streamline clearances and attract private investment, seeks to address regulatory bottlenecks and unlock the state’s untapped tourism potential.
Approval Of Proposals For Renewable Power Generation-
Source: Click Here
The Cabinet approved four major proposals from the Energy Department to boost renewable power generation, green investment, and rural employment.
Target –
Expand renewable power generation capacity significantly to support clean energy transition and sustainable growth in Andhra Pradesh.
Create jobs and boost green investments across key districts.
Enhance energy security by integrating solar, wind, and pumped storage projects.
Key Provisions –
Creation of 1,205 jobs through hybrid wind-solar expansion in Kurnool and Nandyal. Employment generation of 3,000 persons via the Vizianagaram pumped storage project.
Implementation of large-scale battery energy storage systems (BESS) to improve grid flexibility.
State Electricity Regulatory Commission (SERC) incentives and tariff support for renewable integration.
Efforts to streamline land allotment, power purchase agreements, and transmission infrastructure to accelerate project execution.
Alignment With Central Schemes –
The project aligns with the National Solar Mission and National Wind Energy Mission.
Relevance –
Andhra Pradesh taps only 5.6% of its renewable energy potential, underscoring substantial scope for scaling renewable energy. Currently, Andhra Pradesh is setting up Renewable Energy Manufacturing Zones (REMZs) and providing incentives under the Andhra Pradesh Green Hydrogen Policy, to attract high-value clean manufacturing investments, making it a competitive hub for future green industries.
This initiative also builds on technical studies which highlight the necessity of integrating pumped and battery storage for grid flexibility, early transmission planning in high-resource zones, and coordinated siting of solar and wind to enable large-scale renewable integration.
IV. Key Takeaways For The Month:
Reform Decisions-
Indian states collectively advanced decriminalisation reforms as part of a broader compliance reduction drive aligned with the Central Government’s Jan Vishwas Act. States such as Haryana, Odisha, and Uttar Pradesh replaced criminal penalties with civil and administrative actions for numerous minor offences, easing business regulatory burdens and judicial caseloads. Operational reforms like Maharashtra’s 24x7 commercial operation directive and Delhi’s permission for women to work night shifts illustrate progressive labor and economic policy shifts designed to boost economic activity and social inclusion.
Policy Level Announcements-
Several states unveiled visionary economic frameworks targeting multi-trillion-rupee investments over multi-decade horizons, with Maharashtra’s “Viksit Maharashtra 2047” and Rajasthan’s vision documents exemplifying this strategic foresight. Initiatives to position states as innovation and talent hubs such as Maharashtra’s Global Capability Centre Policy aim to leverage emerging sectors and generate high-skill employment. Complementing these are sector-specific incentives, from Kerala’s ESG-focused industrial policy to Maharashtra’s dedicated gems and jewellery growth strategy.
Other Decisions-
States also introduced targeted social security reforms, including Assam’s Unified Pension Scheme blending contributory and guaranteed pension features, alongside environmental taxes like Uttarakhand’s Green Cess to fund air quality and smart infrastructure. Urban governance received attention through policies facilitating slum redevelopment and legalizing informal land holdings, while public health and regulatory frameworks were strengthened via bans on medicine sales without prescription and enhanced digitalization of land-use permissions.
The policy reforms and strategic initiatives across Indian states in October 2025 illustrate a conscientious effort to foster economic resilience and social inclusivity amid evolving challenges. The alignment of state ordinances with central schemes such as the Jan Vishwas Act reflects a cohesive approach towards deregulation and administrative simplification, enhancing the ease of doing business nationally. Sector-specific policies ranging from renewable energy expansion in Andhra Pradesh to Kerala’s pioneering ESG incentive framework signal a paradigm shift towards sustainable and responsible development. Social sector measures like Punjab’s universal health coverage and Rajasthan’s seed kit distribution for women farmers embody targeted interventions for grassroots empowerment. However, these ambitious reforms also bring to the fore the complexities of implementation, requiring continued vigilance to ensure effective governance and equitable outcomes. As states chart distinct yet interconnected pathways towards growth and welfare, these initiatives collectively contribute to India’s broader vision of inclusive development and global competitiveness through localized action.