Welcome to the latest edition of The States in Motion ! Between 1 and 15 December 2025, Indian States undertook a concentrated set of governance interventions.
Andhra Pradesh moved to a three-zone economic governance model with zonal CEOs empowered for land allocation and single-window clearances. Delhi integrated trade licensing with property tax to address a revenue gap where collections stood at ₹1,908 crore against a ₹4,300 crore target, while also proposing a unified transport authority to tackle congestion costs estimated at ₹60,000 crore annually. Rajasthan decriminalised minor offences across 11 Acts to ease compliance for nearly 41 lakh MSMEs, while Telangana committed ₹1,000 crore as patient capital to seed a $20 billion quantum economy by 2035.
This edition of States in Motion documents these decisions across reforms, policy announcements, social sector schemes, and investment initiatives.
I. Reform Decisions:
A. Andhra Pradesh
Restructuring Of Andhra Pradesh Into Three Economic Zones
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On 1st December, 2025, the Andhra Pradesh Government announced that the state will be restructured into three economic development zones.
The zone-wise model aims to replace a one-size-fits-all approach with customised policies and targeted investments to speed up infrastructure growth, drive industrialisation, and ensure balanced regional development.
Proposed Zones -
North Coastal Zone - Headquartered in Visakhapatnam, this zone will focus on port-based industrialisation, information technology hubs, fisheries, pharmaceuticals and tourism.
Central Coastal Zone - Headquartered in Amaravati, this zone will focus on agro-based industries, food processing, logistics, textiles and cement.
Rayalaseema Zone - Headquartered in Tirupati, this zone will focus on renewable energy, mining, horticulture, and spiritual tourism.
Salient Features -
For each zone, there will be zonal committees made up of regional ministers and legislators.
A state-level steering committee (chaired by the Chief Minister) will oversee the overall framework.
Implementation at the ground level will be carried out by dedicated committees per zone, headed by a CEO (with district collectors as members).
The zonal CEOs will have substantial financial and administrative powers, including land allocation and single window clearance for projects.
Advisory committees composed of MPs, MLAs, and industry representatives will guide strategic decisions for each zone.
Major Collaborations - NITI Aayog will formulate zone-specific vision plans, inspired by Singapore’s Central Coastal Zone blueprint.
Relevance -
The restructuring aligns with the state Government’s broader strategy to transform key regions, particularly Visakhapatnam, into major growth engines, as reflected in earlier announcements targeting a $ 120-billion economy for the Visakha region by 2032. It forms part of a wider push to accelerate industrial growth, upgrade infrastructure, and strengthen the overall investment climate across Andhra Pradesh.
With the target of 15% GSDP growth, its success (or failure) could provide empirical evidence on how much zonal customisation, administrative decentralisation, and targeted investment zones can contribute to economic growth relative to the more common SEZ cluster model.
Collaboration with NITI Aayog (for Vizag and Rayalaseema Zones) and the Government of Singapore (for the Central Coastal Zone) is a strategic move to secure global best practices in urban and economic planning. This non-fiscal incentive signals regulatory commitment and de-risks investment in these specific zones for foreign capital.
Amendments To The Fire Services Act, 1999
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The Andhra Pradesh Government approved major amendments to the Fire Services Act, 1999 on 2nd December, 2025, aligning it with the National Building Code, (NBC) 2016 and the AP Building Rules, 2017 amid the rapid growth of high-rises.
These aim to streamline compliance, speed up approvals, enhance audits, and ensure continuous monitoring to prevent structural and fire risks.
Key Features -
No Objection Certificates (NOCs) will now be issued entirely online, with approval timelines reduced from 60 days to 21 days.
A three-stage system has been introduced comprising a provisional NOC before construction, a Fire Safety Certificate post completion, and periodic renewals thereafter.
NOCs have been made mandatory for all commercial, residential, educational, and industrial buildings, and the amendments introduce empanelled third party agencies to conduct audits and ensure continuous compliance.
The framework imposes heavy penalties for violations, and provides the Fire Department with clearer enforcement powers.
States With Similar Initiatives - Gujarat and Tamil Nadu Fire Service Acts align their fire safety rules with the NBC for high rises and public buildings, adopting streamlined NOC processes and audit mechanisms.
Relevance -
The existing process for obtaining a Fire NOC took up to 60 days. By mandating an entirely online NOC issuance and reducing the approval timeline to 21 days, the Government aims to improve the state’s Ease of Doing Business (EoDB), attracting faster investment in real estate and infrastructure.
To support thorough and professional inspections, the state is engaging empanelled third-party agencies. This is a necessary step to address compliance gaps, such as those seen in Nagpur earlier this year, where 139 of 390 buildings did not meet safety standards. This model would help Andhra Pradesh to prevent similar lapses through consistent, expert led compliance rather than relying solely on limited fire department staff.
By clarifying enforcement powers under the Fire Services Act, 1999 and Andhra Pradesh Building Rules, 2017, the Amendments enable decisive action against violations, helping AP avoid gaps as seen in the Prakasam district in 2021, where it was found that around 60% of hospitals and 30% of industries lacked NOCs, reflecting non-compliance. The strengthened framework ensures consistent oversight of high risk establishments.
B. Bihar
Municipal Property Tax Incentive And Waiver Scheme 2025
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Bihar has implemented the Property Tax Interest and Penalty Waiver Scheme on the 1st December, 2025, under which property tax defaulters in urban areas can settle outstanding dues without paying any interest or penalty. The scheme is valid until 31st March, 2026.
The scheme aims to encourage compliance among property owners by offering a time-limited opportunity to clear long-pending municipal tax dues, reduce municipal tax arrears, and improve overall revenue collection from property taxes across Bihar’s urban areas.
Salient Features -
The waiver scheme offers a full waiver of interest and surcharge on outstanding municipal property tax dues for defaulters who pay only the principal amount.
It applies across all categories of property, residential, commercial, industrial, institutional, and even properties owned by the central or state Government.
The waiver covers dues from current and previous years, including those under litigation or unassessed properties (subject to withdrawal of court cases or assessment as per norms).
Property owners can settle dues via online portal, municipal offices, or dedicated payment camps, making payment convenient and accessible.
Relevance -
It is pertinent to note that property tax is the core source of revenue for ULBs. Bihar’s urban bodies are heavily transfer-dependent and under pressure to show improved OSR to qualify better under the 15th Finance Commission performance-linked grants. A focused arrears-clearing window can help convert dead arrears into immediate cash flow and reset taxpayer accounts.
The scheme tackles Bihar’s chronic municipal tax non-compliance by turning unpaid property and holding taxes into a financial relief opportunity. Waiving all accrued interest and penalties eliminates the compounding debt barrier, making it easier and more attractive for previously non-compliant citizens to pay.
As of now, more than ₹ 1.5 crore in property tax arrears remains outstanding, with 3,000–4,000 residents reportedly not having paid holding tax even once since 2006, owing to which the scheme creates a one-time window for citizens to regularise their dues, improving municipal revenue flows needed for urban services and infrastructure.
C. Rajasthan
Cabinet Approval To Rajasthan Jan Vishwas (Amendment) Ordinance, 2025
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The Rajasthan Government, on 4th December 2025, approved the Rajasthan Jan Vishwas (Amendment of Provisions) Ordinance, 2025 to decriminalise minor offences and replace imprisonment provisions with monetary penalties to strengthen ease of doing business.
The Ordinance reduces the burden on citizens and businesses by removing jail provisions for small, procedural mistakes and treating them as civil penalties instead.
Scope - The Ordinance amends provisions in 11 state Acts, including the Rajasthan Forest Act, 1953,, the Rajasthan State Aid to Industries Act, 1961,, and the Jaipur Water Supply and Sewerage Board Act, 2018. These amendments replace imprisonment with monetary penalties for minor offences to reduce the compliance burden.
Salient Features -
Imprisonment provisions for minor regulatory violations are replaced with graded monetary penalties.
Offences such as delays in filings, documentation errors, or technical lapses are converted into compoundable or civil violations.
Criminal liability is limited only to serious offences that involve fraud, harm, or safety violations.
The Ordinance forms part of a broader state exercise to review and revise obsolete criminal provisions across multiple departments.
Central Scheme Alignment - The Ordinance aligns with the Jan Vishwas (Amendment of Provisions) Act, 2023 of the Central Government, which decriminalised 183 provisions under 42 Central Acts to reduce compliance burden and improve the business environment.
Similar Initiatives In Other States - With the approval of the Rajasthan Jan Vishwas (Amendment of Provisions) Ordinance, 2025, Rajasthan has joined states such as Maharashtra, Haryana, Odisha, Madhya Pradesh, Tripura and Uttar Pradesh that have undertaken similar reforms, strengthening India’s broader compliance-reduction agenda.
Relevance -
The Rajasthan Jan Vishwas Ordinance, 2025 was required to address the compliance load and litigation pressure created by the existing state laws on businesses and judicial system. Before the Ordinance, minor lapses under 11 state Acts, such as the Forest Act, 1953 (leading to 23-year case backlogs) and the Industries Act, 1961, carried criminal penalties, subjecting Rajasthan’s approximately 41 lakh MSMEs to the disproportionate threat of imprisonment.
By removing these jail provisions and substituting them with swift monetary penalties and administrative adjudication, the Ordinance aims to clear court backlogs, reduce the high compliance costs, and replace fear with trust to foster economic growth.
Also, delays in key approvals like Consent to Operate (CTO) and environmental clearances were a known challenge for MSMEs in the state. This improved regulatory environment aligns with a key pillar of the DPIIT’s (Department for Promotion of Industry and Internal Trade) BRAP (Business Reforms Action Plan) reforms, potentially bolstering Ease of Doing Business (EoDB) in the state.
By shifting minor regulatory violations from criminal courts to administrative adjudication, the ordinance improves enforcement efficiency and allows authorities to focus on serious environmental, safety, and economic offences.
The reforms will also remove the entry barriers for micro and informal enterprises by reducing the perceived risk of criminal prosecution, encouraging greater formal registration, licensing, and participation in the regulated economy.
D. Delhi
Formation Of Task Force To Establish The Delhi Unified Metropolitan Transport Authority (DUMTA)
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The Delhi Government on 6th December, 2025, announced the formation of a high level task force to set up Delhi Unified Metropolitan Transport Authority (DUMTA) as a unified transport authority to streamline planning and execution across multiple transport agencies in the capital.
Aim - The aim is to create a single nodal body that brings together public transport operators, municipal bodies, police, and road agencies under one institutional framework to optimise urban mobility and improve the public transport system.
Key Features -
The task force will be chaired by the chief secretary and include senior officials from transport, urban development, finance, planning, Delhi Police, Public Works Department (PWD), Delhi Development Authority (DDA), Delhi Metro Rail Corporation (DMRC), Delhi Transportation Corporation (DTC) and other stakeholders, with scope to include urban transport experts.
The task force has been mandated to submit recommendations within three weeks, including the institutional structure of DUMTA, stakeholder consultations, a draft DUMTA Bill, and the authority’s vision, mission, and operational objectives.
DUMTA is envisaged to oversee integrated mobility planning, coordination across modes, unified ticketing, feeder connectivity and reduction of overlapping jurisdictions in Delhi’s transport ecosystem.
A dedicated financial body, namely, the Delhi Urban Transport Fund (DUTF) is also proposed. Its primary role would be to manage the finances of the Delhi Unified Metropolitan Transport Authority (DUMTA) and centralize funding for transport projects in Delhi-NCR.
Similar Initiatives In Other States - Tamil Nadu established Chennai Unified Metropolitan Transport Authority (CUMTA) in 2010 which acts as a unified transport nodal body coordinating multiple agencies.
Relevance -
In Delhi, overlapping responsibilities among agencies - Delhi Metro Rail Corporation (DDMRC), Delhi Transport Corporation (DTC), Public Works Department (PWD), Delhi Development Authority (DDA), Municipal Corporation of Delhi (MCD), and Delhi Police, have created major inefficiencies. Fewer than 10% of Metro stations have formal feeder bus connectivity, forcing most commuters, especially in middle-income neighborhoods, to rely on unregulated e-rickshaws and shared autos with inconsistent pricing, poor safety standards, and no accountability. The main issue DUMTA aims to solve is this lack of coordination and the resulting operational overlap between different transport agencies.
Vehicular emissions contribute to more than 50% of pollution in Delhi. Furthermore, a recent study found that evening commuters face a 39% higher dose of PM2.5 compared to morning commuters, underscoring the severe health risk of congested, vehicle-dependent mobility. By integrating metro, bus, and feeder services under one authority, DUMTA will improve public transport’s reliability and attractiveness, helping shift commuters away from private vehicles, thereby reducing the largest local source of pollutants.
Further, traffic congestion on Delhi roads costs around ₹ 60,000 crore annually and this is projected to increase to ₹ 98,000 crore by 2030. The setting up of a dedicated authority will help directly target the massive financial drain caused by traffic congestion, a problem prone to be amplified by uncoordinated functions of road authorities, police, and municipal agencies.
Lastly, the DUMTA mandate includes designing and managing a Delhi Urban Transport Fund (DUTF). By channeling all urban transport funds through a single authority, the state ensures fiscal accountability and prevents the wasteful duplication of infrastructure projects that result from agencies working in silos (e.g., PWD building roads that conflict with DMRC station exits).
Single Window For Delhi Trade Licence And Property Tax
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On 9th December, 2025, the Municipal Corporation of Delhi (MCD) approved a policy integrating General Trade Licence (GTL) payments with annual property tax through a single window system.
The policy simplifies compliance by subsuming GTL issuance under Section 417 of the Delhi Municipal Corporation (DMC) Act, 1957 into the property tax system, where the payment receipt will serve as a valid licence upon meeting pollution, fire safety, and other norms.
Key Features -
This policy replaces a complex fee structure based on trade type, area, and locality with a fixed 15% of applicable property tax, ensuring fairness and predictability.
It reduces field inspections and curbs rent seeking by shifting to a trust based self-declaration system.
Licences are streamlined through an endorsement on the tax receipt, which also serves as validation for annual renewals.
Relevance -
The policy is a direct attempt to maximise the MCD’s Own Source Revenue (OSR). The Municipal Corporation of Delhi has struggled to collect its targeted property and other local taxes, with revenue often falling significantly short of budgeted targets. In FY 2024-25, MCD had collected around ₹1,908 crore against a property tax target of ₹ 4,300 crore, highlighting a substantial compliance/fiscal gap in its own revenues.
With only 34,048 GTLs issued and ₹ 56.66 crore collected against a ₹ 289 crore property-tax base, compliance remains below 40%. The reform aims to address this gap by introducing a simpler, bundled payment system to boost uptake.
General licence fees are only about 20% of the corresponding property-tax amount, while special licence fees are even lower at just 6%, showing that a large share of traders are either not taking licences or under-declaring them, leading to major revenue loss and an uneven compliance burden on those who comply with the rules. A uniform 15% fee aims to correct these disparities and stabilise MCD revenues.
In May 2022, the three municipal corporations of Delhi—North, South, and East Delhi Municipal Corporations, were merged into a single body, the Municipal Corporation of Delhi (MCD). Significant relief from the unification has been reported, noting that uniform South Delhi Municipal Corporation (SDMC) fee slabs had disproportionately burdened small establishments such as pan shops.
Traders, especially small shops in areas like Kamla Nagar, faced harassment through duplicate notices, high SDMC based slabs, and penalties up to ₹ 25,000. The new system reduces inspections and removes redundant processes, easing compliance pressures.
By validating licences through endorsement on standard tax receipts, the initiative builds trust, cuts paperwork, and enhances transparency, this invariably increases the ease of doing business for multiple traders across Delhi.
CM-Pragati Portal: Time Bound Infrastructure Delivery
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On 1st December, 2025, Delhi Government gave in-principle approval to launch CM-Pragati, a PM-Pragati-like portal for monitoring major projects.
CM-Pragati aims to ensure faster, hassle-free rollout of infrastructure projects like Yamuna cleaning by resolving coordination issues, reducing delays, and enforcing departmental accountability.
Key Features -
A real-time digital dashboard will track all projects with budgets of ₹ 5 crore and above, ensuring end-to-end monitoring from initiation to completion.
The system will establish a direct communication channel linking the Chief Minister, secretaries, departmental heads, and heads of Government agencies to enable seamless updates and coordination.
This platform will allow officials to share real-time information, take swift decisions, and respond promptly to implementation challenges.
The Chief Minister will regularly chair review meetings to closely monitor the progress of key infrastructure and Yamuna cleaning projects.
Relevance -
Delhi, as a hub of large infrastructure works such as Delhi Metro Rail Corporation (DMRC) Phase-III and the ongoing road concretisation programme, is prone to delays in project implementation. CM-Pragati’s provision for monitoring projects above ₹ 5 crore, along with its inter-departmental coordination channels, can help pre-empt delays through proactive issue resolution.
Delhi has spent ₹ 5500 crore on Yamuna cleanup projects over the past three years, yet only 21 out of 44 planned new or upgraded sewage treatment plants (STPs) have been completed. This has resulted in a 41.4 crore litres per daygap in sewage treatment as of August 2025. CM-Pragati’s real time dashboard and reviews conducted by the Chief Minister can enforce timelines and coordination to close STP gaps faster.
E. Haryana
Haryana Municipal Bill, 2025
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The Haryana Government, on 8th December 2025, approved the Haryana Municipal Bill, 2025 to unify and modernise urban governance in the state.
The Bill aims to replace the Haryana Municipal Act, 1973 and the Haryana Municipal Corporation Act, 1994, under which 87 municipalities currently function, with a single unified legal framework for all urban local bodies.
Scope – The Bill covers municipal corporations, municipal councils, and municipal committees across Haryana, bringing all 87 urban local bodies (ULBs) under a single law to streamline administration, service delivery, and regulatory processes.
Key Features -
The Bill establishes a single, unified legal framework for all urban local bodies by merging the previously separate municipal acts.
It eliminates the inconsistencies and administrative ambiguities arising from the two separate Acts.
The Bill enhances financial autonomy by authorising municipalities to set taxes and fees within a Government-prescribed range.
The Bill introduces new statutory mandates for urban transport and urban forestry to ensure that urban development aligns with sustainable practices.
The Bill proposes common service rules for municipal staff to reduce litigation over transfers and promotions under different frameworks.
It introduces the role of municipal magistrates to try municipal offences and enhances penalties/fines for violations.
Relevance -
Haryana’s 87 ULBs were earlier governed by two separate statutes- the 1973 Act and the 1994 Act creating a fragmented regulatory framework and inconsistent enforcement across the state. A key historical issue was the disparity in penalties for identical offences: violations under Municipal Committees (1973 Act) could attract imprisonment, while the same offences under Municipal Corporations (1994 Act) often resulted only in fines. The transition to a single, unified legal framework eliminates these inconsistencies, ensuring complete uniformity in regulatory standards and penalties across all 87 ULBs, supported by the introduction of specialised Municipal Magistrates to strengthen compliance.
Further, Municipalities historically lacked the autonomy to fix user charges and fee rates that truly reflected the cost of service delivery, leading to chronic fiscal weakness. Between 2015-16 and 2019-20, fiscal transfers (Grants) from Central and state Governments constituted over 50% of the total revenue of Haryana’s ULBs, demonstrating high dependency. Notably, the state’s Own Revenue accounted for approximately 30%.
This constraint was particularly evident in non-tax revenues, where the inability to revise rates for services such as trade licences curtailed Own-Source Revenue (OSR) mobilisation. In the Real Estimated budget of 2023–24, own non-tax revenue was estimated to be 32% lower than budgeted, driven largely by significant shortfalls in urban development collections (₹ 1,450 crore) and road transport revenues (₹ 1,086 crore).
Empowering ULBs to fix taxes and fees within minimum/maximum limits is a direct measure to boost OSR. Crucially, provisions for a Credit Rating mechanism are introduced to help ULBs achieve investment grade status, thereby accessing market borrowings and reducing reliance on state budgetary transfers.
F. Odisha
The Odisha Shops And Commercial Establishments (Amendment) Bill, 2025
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On 3rd December 2025, the Odisha Legislative Assembly passed the Odisha Shops and Commercial Establishments (Amendment) Bill, 2025.
The Bill aims to modernise the 1956 Act by introducing reforms to boost productivity, enhance ease of doing business, and promote gender inclusivity. The amended provisions will apply specifically to establishments employing 20 or more persons, reducing the compliance burden on smaller businesses.
Key Features -
The Bill extends the maximum daily working hours for employees from 9 to 10 hours, while maintaining the weekly cap at 48 hours.
It removes the prohibition on women working night shifts, allowing them to be engaged between 7 PM and 6 AM, subject to their written consent and employer-provided safety and dignity measures.
The quarterly overtime limit has been significantly increased from 50 hours to 144 hours, with overtime wages mandated at double the ordinary rate.
Establishments are now permitted to remain open 24x7 and 365 days a year, provided employees are given one weekly off and appropriate overtime compensation.
The mandatory rest interval requirement has been simplified, allowing up to six hours of continuous work before a break of at least 30 minutes is required.
Similar Initiatives In Other States -
The amendments introduced by the Odisha Shops and Commercial Establishments (Amendment) Bill, 2025, reflect a nationwide trend in labour reforms, aligning the state with others like Telangana and Maharashtra by raising the quarterly overtime limit to the 144-hour standard set by the central OSH Code.
Relevance -
The most significant change is the increase in the quarterly overtime limit from 50 hours to 144 hours (a nearly 188% increase). This allows the organised sector establishments (those with more than 20 employees) to manage high peak-season demand without incurring high costs associated with short-term, temporary hiring.
Also, the extension of the maximum daily shift from 9 to 10 hours (while retaining the 48-hour weekly cap) enables more efficient scheduling and better utilisation of costly fixed assets and capital goods in sectors like organised retail and logistics.
It is important to note that female labour force participation rates (FLPRs) in Odisha have historically remained low in both rural and urban areas. In rural Odisha, the FLPR stands at 15.2%, below the all-India average of 18.2%, while in urban areas it is 13.4%, which is 2.5 percentage points lower than the national average. The Bill aims to boost the participation of women in the higher-paying Urban Organised Service Sector, where currently over 53% of urban women in Odisha are employed (mainly in education, health, and social work).
By removing the prohibition on women working between 7 PM and 6 AM, the Bill unlocks shifts in key 24x7 industries like ITES/BPO, hospitality, and organised retail. This is expected to create thousands of new opportunities in regular, salaried employment, especially for urban women who make up 46.5% of regular wage workers in urban Odisha.
G. Maharashtra
Community Service As Official Punishment For Minor Offences
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On 1st December, 2025, the Maharashtra Government notified the Maharashtra (Community Service as Punishment for Certain Offences) Rules, 2025 making community service the official alternative punishment for minor offences under the Bharatiya Nyaya Sanhita (BNS), 2023 and Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023
Salient Features -
The rules fix the duration of community service between 1 and 31 days (or 40 to 240 hours) with a maximum of 8 hours per day.
Courts imposing community service must clearly specify the nature, location, duration, and supervising officer for the punishment.
Approved forms of community service include cleaning and support work in Government hospitals, libraries, schools, laboratories, public buildings, municipal areas, beaches, parks, old age homes, mental health institutes, police stations, and other public spaces.
Community service may also involve traffic and crowd regulation, assistance to municipal sanitation teams, and environmental tasks such as tree planting and maintenance.
The punishment applies to specific minor offences under the Bharatiya Nyaya Sanhita (BNS), 2023, including first-time theft under ₹ 5,000, public misconduct while drunk, defamation, non-appearance after proclamation, unlawful trade by public servants, and similar minor infractions.
Central Scheme Alignment - The bill formally operationalises community service as an alternative punishment for minor offences under the BNS and BNSS, 2023, and introduces a structured, supervised, and restorative justice-oriented system for non-custodial penalties in Maharashtra.
Similar Initiatives In Other States/UTs -
Delhi: Delhi’s Home Department notified guidelines pursuant to High Court directions, specifying 12 categories of community service such as roadside weeding, book binding in public libraries, and maintenance work in hospital wards.
Goa: Goa Government has announced that first-time offenders involved in minor crimes would be assigned community service in government facilities, including beaches and municipal offices, following consultation with the High Court.
Relevance -
Criminological and psychological research indicates that sentencing minor offenders to short prison spells is detrimental, potentially increasing recidivism (re-offending). Conversely, studies consistently show that offenders sentenced to community service recidivate significantly less in both the short and long term when compared to those given short-term imprisonment.
India continues to face severe overcrowding in its prisons with an occupancy rate of 120.8%. For Maharashtra, the State reported 60 prisons with an official capacity of 26,281 and an actual inmate population of 40,808. This translates to an occupancy rate of approximately 155.3%, indicating one of the highest congestion levels among major States. Using community service for infractions prevents minor offenders from entering the prison system, thereby reducing the burden on state correctional facilities.
Further, it is estimated that the cost of maintaining a prisoner in India ranges from ₹2,000 to ₹3,000 per month, whereas community service can be administered at only a fraction of this expense. This makes the decision not just administratively effective but also economically prudent.
As of December 2023, nearly 87% of India’s prison population is between 18 and 50 years of age, the core working-age group. The confinement of such a large proportion of individuals during their most productive years represents a significant loss of potential human capital for the nation’s economy.
II. Policy Level Announcements:
A. Haryana
Land Acquisition Policy For Gurugram Metro (GMRL)
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The Haryana Government, on 1st December 2025, approved a new land-acquisition policy for the Gurugram Metro, allowing GMRL to acquire private land for metro tracks and stations through direct negotiations with landowners.
Acquisition Mechanism -
Under this policy, the entire cost of land acquisition will be borne by GMRL, removing the financial burden from the state Government.
The acquisition process will be overseen by a land-acquisition committee chaired by the Gurugram Deputy Commissioner, ensuring administrative supervision and coordination.
Key Features -
The policy allows direct negotiations with landowners for the purchase of land, and the cost of acquisition will be borne by GMRL.
For title-holders, compensation and rehabilitation benefits are to follow schedules under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act, 2013) and land price will be fixed by mutual consent.
For non-titleholders (tenants, informal occupants), rehabilitation and resettlement will be handled as per the project relief and resettlement plan under the new policy.
The land acquisition committee comprises 11 officials, chaired by the Gurugram Deputy Commissioner, to oversee acquisition, negotiation, and compensation, aiming for faster clearances and reduced delays.
Relevance –
The Gurugram Metro delay has nearly doubled the project costs, from the original ₹5,453 crore (approved in 2023 using 2019 rates) to ₹10,266 crore in the revised DPR, resulting in a financial loss of over ₹ 4,813 crore. To prevent further escalation, the current Land Acquisition Policy aims to replace the slow, litigation-heavy eminent domain processes with faster mutual-consent land purchases to quickly secure key parcels, finalise alignment, and ensure uninterrupted execution of civil works.
The working population number of working people in Gurugram is rising fast, from 12.63 lakh in 2022–23 to 14.8 lakh in 2023–24, which increases the need for better metro connectivity for daily travel.
Earlier attempts at land acquisition in Gurugram for road or infrastructure projects have forced agencies to “descope” or postpone infrastructure projects when land-acquisition/transfer lags, thereby undermining timely urban infrastructure development in Gurugram.
Further, the primary economic objective is to drastically reduce the project’s Interest During Construction (IDC) costs. By replacing the time-consuming, litigation-prone eminent domain process with direct negotiation (the mutual consent model), the state aims to complete acquisition for key sites (e.g., houses/shops in Basai village, depot land in Sector 33) in a matter of months rather than years. This accelerates the deployment of ₹ 5,452 crore in public capital, improving the overall Return on Investment (ROI) of the metro.
B. Karnataka
Hate Speech And Hate Crimes (Prevention) Bill, 2025
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On 4th December, 2025, the Government of Karnataka approved the Karnataka Hate Speech and Hate Crimes (Prevention) Bill, 2025.
This Bill aims to prevent hate speech and hate-motivated offences by providing a robust legal framework for penalising individuals and organisations that promote hatred, disharmony, or violence against people or communities on grounds such as religion, caste, gender, sexual orientation, ethnicity, place of birth, language, disability or tribe.
Salient Features -
The Bill defines hate speech broadly to include any public expression verbal, written or electronic intended to incite hatred or disharmony against a person or group based on prejudicial factors.
Under the proposed law, a first-time offence can result in imprisonment from 1 to 7 years plus a fine of ₹ 50,000.
For repeat or subsequent offences, the penalty increases to 2 to 10 years’ imprisonment along with a fine of up to ₹ 1,00,000.
All offences under the Bill are cognizable, non-bailable, and will be tried by a First Class Judicial Magistrate.
Organisations (institutions, groups, bodies) can also be held liable. Further, office bearers may be punished unless they prove lack of knowledge or due diligence regarding the offence.
It provides for victim compensation, Courts can award appropriate compensation to victims harmed by hate crimes or hate speech.
Relevance -
Karnataka has emerged as the first state in India to introduce a dedicated Hate Speech and Hate Crimes (Prevention) law. However, the Bill risks substituting legal certainty with discretionary power, potentially undermining both civil liberties and enforcement credibility unless accompanied by detailed rules.
The Bill’s strict penalties and cognizable, non-bailable provisions may act as a deterrent for repeat offenders. However, given the broad definitions of hate speech, enforcing the law without misinterpretation or selective targeting could be extremely challenging in practice.
Notably, convictions in speech-related offences (earlier under Section 153A of the Indian Penal Code, 1860) were approximately 20%, signifying that a large majority of those arrested are ultimately acquitted. Against this backdrop, reclassifying these offences as non-bailable risks causing disproportionate harm, i.e., individuals who may later be found innocent could nonetheless spend extended periods in custody while their cases are pending. Such a move effectively imposes punishment before guilt is established, raising concerns about fairness, liberty, and procedural justice.
C. Goa
Land Policy For Mobile Towers And Telecom Infrastructure
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On 20th November, 2025, the Goa Government formally notified a new Telecom Infrastructure Policy designed to fast-track the rollout of 5G services across the state.
Objective - The policy aims to create a streamlined regulatory framework that accelerates 5G deployment, promotes efficient use of telecom infrastructure, ensures uniformity in approval processes, and enhances digital connectivity across both urban and rural regions of Goa.
Key Provisions -
Standardised Rental Charges:
Urban areas - Ground-based telecom towers will be charged ₹ 3 lakh for a five-year term, while rooftop towers will be charged ₹ 60,000 for the same duration.
Rural areas - 50% of urban rates for both ground-based and rooftop towers
The policy establishes uniform guidelines for installation, outlining clear rules for setting up towers, poles, and small cells on Government land, with mandatory adherence to all prescribed safety, structural, and environmental norms.
The policy introduces a streamlined approval system, requiring all applications to be submitted through the Central Right-of-Way (RoW) Portal to enable faster, paperless, and transparent clearances.
It also strengthens penalties and compliance measures by imposing stricter action against unauthorised or illegally installed towers and increasing renewal charges for existing infrastructure by 50%.
Lastly, it promotes infrastructure sharing by encouraging telecom companies to share towers and passive infrastructure, thereby reducing duplication, lowering operational costs, and improving overall coverage efficiency.
Similar Initiatives In Other States-
Gujarat - Gujarat’s Telecom Infrastructure Policy 2022 aims to fast-track 5G and digital connectivity by streamlining tower and fibre permissions through a single window system with time-bound approvals, promoting online processes and reducing procedural delays.
Tamil Nadu - Released a Tamil Nadu Telecom Infrastructure Policy, 2022 that simplifies approval and installation procedures for telecom infrastructure.
Relevance -
While 5G services have been rolled out across 99.6% of districts nationwide, as of February 2025, Goa had 5G coverage in only two of its districts with 111 total 5G Base Transceiver Stations (BTSs) installed. The new policy with a streamlined regulatory framework is likely to increase 5G coverage in the state.
Tourism directly contributes 16.43% to Goa’s GDP and employs about 35% of the population. Goa also attracts nearly 14 million visitors annually. 5G connectivity is essential for high-quality digital experiences demanded by modern tourists (seamless payments, virtual reality tourism, real-time navigation) and for the smooth operation of hospitality and digital services (e-governance, IT and ITeS, biotechnology).
Goa is actively pushing initiatives like the One Map Goa GIS portal and free public Wi-Fi hotspots, all of which require robust, high-density network infrastructure that only 5G small cells and high fiberisation can provide. The policy’s provisions for uniform guidelines for small cell/pole installation and the encouragement of infrastructure sharing are crucial for achieving the density needed for smart city services in its urban centres.
The policy directly addresses the problem of “RoW friction,” which accounts for a significant portion of Capital Expenditure (CapEx) and deployment delays for telecom companies. Standardised rental charges (e.g., ₹ 3 lakh for urban ground towers) and the single window clearance via the Central RoW Portal provide cost certainty and time predictability, which are non-negotiable for large scale infrastructure investment, thereby accelerating the 5G rollout.
Things To Watch Out For -
Coastal belts, forest areas and CRZ-regulated regions may face slow approvals, limited grid power and weak fibre backhaul. Hybrid deployment models (macro towers combined with small cells, Wi-Fi offload and satellite backhaul) will be essential, but coordinating these technologies at scale could be complex.
While the policy encourages tower and passive infrastructure sharing, it remains largely voluntary and partially incentivised. Currently, absence of standardised cost-sharing templates may lead to inter-operator disputes. In shared sites, unclear maintenance and accountability norms also risk blame-shifting and service degradation.
Although Government assets such as panchayat buildings, tourism sites and public infrastructure can be leveraged for tower hosting, effective inter-departmental coordination and partnerships with tourism stakeholders will be critical.
Beyond formal charges (municipal fees, power and maintenance), informal payments and local-level rent-seeking can materially affect deployment costs. These factors disproportionately impact smaller operators and discourage rapid rollout in rural or semi-urban areas.
D. Tamil Nadu
Tamil Nadu Toy Manufacturing Policy, 2025
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On 7th December, 2025 the Tamil Nadu Government announced the Toy Manufacturing Policy, 2025.
This policy aims to position Tamil Nadu as a global hub for design, development, and production of new age toys by attracting leading domestic and international manufacturers.
Key Features -
The framework focuses on onboarding at least 10 anchor investors.
The focus would be setting up a dedicated Toy Manufacturing Park, and promoting creative design studios to support Research and Development (R&D) led, high skill employment in priority segments such as Science, Technology, Engineering and Mathematics (STEM) toys, electronic and interactive toys, puzzles, board and action games, action figures, and plush dolls.
The policy provides enhanced incentives for investments above ₹ 50 crore creating 50+ jobs. including fixed capital subsidy, concessional land, stamp duty exemption, training support, quality certification, IP facilitation, and electricity tax relief.
MSMEs will receive up to ₹ 1.5 crore capital subsidy, support for women/SC/ST/PwD/transgender entrepreneurs, incentives for sustainable technologies, power tariff support, Employee Provident Fund reimbursement, interest subsidy, innovation vouchers, listing support, and marketing assistance.
Focused support is extended to experiential learning toys and inclusive toys for children with special needs, and creative design studios are eligible for a 30% payroll subsidy for 12 months.
Focus Areas - A major focus is on revitalising the artisanal toy ecosystem through the Kalaignar Kaivinai Thittam, cluster development, Common Facility Centres, GI tag support, skilling programmes, and market access including e-commerce.
Central Initiatives -
The Government of India formulated a comprehensive National Action Plan for Toys in 2020, implemented in coordination with 14 Central Ministries and Departments, to promote domestic manufacturing and position India as a global toy hub. The initiative has delivered strong outcomes; toy imports declined by 52%, exports increased by 239%, and the overall quality of toys in the domestic market significantly improved in FY 2022–23 compared to FY 2014–15.
The Central Government notified the Toys (Quality Control) Order, 2020, making Bureau For Indian Standard (BIS) certification mandatory for all toys sold in India (domestic and imported) from 1st January 2021, to ensure safety and curb sub-standard imports.
Relevance -
The global toy market is valued at $ 180 billion (₹ 16,162,857,000), but India’s share remains less than 1%, underlining a clear opportunity for Tamil Nadu to capture a larger role.
The State’s toy sector is highly fragmented, with 70% unorganised manufacturing concentrated in clay, wooden, and papier-mâché toy categories across districts like Cuddalore, Madurai, Thanjavur, Kanchipuram, and Tirunelveli. This indicates that while artisanal clusters exist, they lack scale, formalisation, and compliance capacity. The policy’s Common Facility centres (CFCs), GI support, and e-commerce integration aim to convert this dispersed cultural craftsmanship into formal economic value, lifting artisan incomes while safeguarding heritage.
Tamil Nadu’s annual influx of 1 million educated graduates provides a labour surplus ideal for labour intensive toy manufacturing, but the real advantage is the workforce’s high STEM density. With over 70% of students in science and technical streams, the State is well positioned to move beyond assembly into high value segments like STEM toys, robotics, and IP-driven design, directly aligning with the policy’s focus on R&D, design studios, and innovation-led manufacturing.
E. Manipur
End-Of-Life Vehicles Policy
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On 3rd December, 2025, The Manipur Government adopted the Central framework for End of Life Vehicles (ELVs) under Section 65 of the Motor Vehicles Act, 1988, aligning state transport rules with national standards.
The policy ensures environmental safety and roadworthiness by regulating unfit vehicles and mandating their scrapping through authorised facilities, reducing road hazards and pollution.
Salient Features -
The policy defines ELVs (whose registrations are cancelled under Chapter IV of the Motor Vehicles Act, 1988) as those:
Whose registration is no longer valid;
Which have been cancelled by an authority or court;
Which has failed fitness tests;
Or which has been declared irreparable by the owner due to fire, accidents, calamities, or severe damage.
It establishes a regulated framework for collection, dismantling, and scrapping through Authorised Vehicle Scrapping Facilities (AVSFs) in accordance with the Motor Vehicle (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021.
The policy permits the renewal of registrations for vehicles older than 15 or 20 years if they successfully pass fitness certification and all required taxes and fees are paid.
States With Similar Initiatives - Delhi’s Transport Department issued guidelines (2024) to manage end-of-life vehicles, where petrol vehicles over 15 years old and diesel vehicles over 10 years old are treated as ELVs.
Relevance -
Permitting renewal of registrations for vehicles older than 15 or 20 years subject to fitness certification and payment of due taxes strikes a pragmatic balance between environmental concerns and economic realities. It ensures that only roadworthy and compliant vehicles continue to operate, thereby improving safety and emissions outcomes without imposing a blanket scrappage burden on owners, particularly small transporters and lower-income households.
Estimates reveal that close to 65% of motor vehicle pollution in India is contributed by aged commercial vehicles over 15 years old. By defining clear rules for scrapping and renewal, the policy creates a financial disincentive (higher fees for renewal) for maintaining old, polluting vehicles and encourages their replacement with newer, more fuel-efficient vehicles. This is a necessary step to meet national targets for cleaner air.
The new ELV system replaces informal scrapyards, which often dumped hazardous materials like battery acid, engine oil, brake fluid, and coolants onto the ground, contaminating soil and groundwater and posing risks to ecosystems and human health. AVSFs follow strict environmental rules, ensuring safe handling and disposal of these toxic substances.
Lastly, the renewal process requires all outstandingtaxes and fees to be paid before certification. This formalisation enhances fiscal compliance and generates revenue for the state, which was previously lost due to non-compliant or illegally operated old vehicles.
F. Telangana
Telangana Quantum Strategy
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On 4th December, 2025, the Telangana Government unveiled India’s first long term quantum strategy at IIIT Hyderabad, aiming to transform Hyderabad into a “Quantum City” and position the state as a global hub for quantum technologies.
The strategy seeks to advance research and innovation in quantum computing, communication, sensing, cryptography, cybersecurity, life sciences, and human capital development.
Key Features -
The policy establishes a dedicated Centre of Excellence in Quantum Technologies at IIIT Hyderabad to support national level research, testing, and skills development.
It launched a ₹ 1,000 crore Fund of Funds from FY 2025-26 to finance deep-tech startups in quantum and other emerging technologies.
It introduces quantum-focused curricula in state universities from 2025-26 and partners with IITs and IISc to skill over 10,000 youth annually.
It adopts a phased rollout, with 2025–26 dedicated to Centre Of Excellence (CoE) setup and fund launch, 2026–30 targeting 100 startups and 25 sectoral pilots, and 2030–35 aiming to build a $ 20 billion (₹ 1.66 lakh crore) quantum economy.
Central Initiative Alignment - It directly supports the goals of the National Quantum Mission (NQM). With a budget of ₹ 6003.65 Cr the mission aims to boost research, development, and adoption of quantum technologies. It focuses on quantum computing, communication, sensing, and materials to make India a global leader in this field, building national capacity, startups, and skilled workforce.
Relevance -
The global quantum computing market size, valued at $ 1.16 billion (₹ 9,628 crore) in 2024, is projected to grow exponentially at a Compound Annual Growth Rate (CAGR) of 34.8% to reach $ 12.62 billion by 2032. The total quantum technology market is projected to exceed $ 44 billion (₹ 3.65 lakh crore) by 2028. By fostering initiatives in this sector, Telangana is strategically positioning itself to capitalise on the rapid growth and opportunities offered by the emerging quantum technology industry.
The launch of a ₹ 1,000 crore Fund of Funds is the critical economic signal. Quantum technology is pre-commercial and highly capital-intensive, making private investment scarce. The state is acting as the necessary “patient capital” to de-risk the sector and attract later-stage private and venture capital, enabling the growth of 100 startups and the $ 20 billion (₹1.66 lakh crore) quantum economy target by 2035.
Industry analysis indicates that there is a severe global talent shortage, with demand for quantum-skilled workers potentially exceeding supply by a ratio of 2:1 (10,000 demanded v. under 5,000 supplied by 2025). The commitment to introduce quantum-focused curricula and partner with premier national institutions (IITs and IISc) to skill over 10,000 youth annually directly addresses this gap.
Lastly, by positioning Hyderabad as a “Quantum City” and centering the effort at the Centre of Excellence in Quantum Technologies at IIIT Hyderabad, the strategy aims to create an agglomeration economic cluster. This draws in talent, anchor labs, and manufacturing units, leading to spillover effects for the state’s existing IT, life sciences, and cybersecurity sectors.
Things To Watch Out For -
Telangana currently lacks a critical mass of quantum startups, specialised suppliers, testbeds and early markets. Building a viable ecosystem will require patience, anchor institutions and deliberate demand creation by the state.
While India produces a large number of quantum-related graduates, only a small fraction possess hands-on quantum engineering and hardware expertise. Without focused skilling, fellowships and lab-to-industry pipelines, talent availability may remain a binding constraint.
Quantum hardware and communications require ultra-specialised infrastructure (superconducting and cryogenic labs, photonics facilities, secure optical networks). India currently has limited capacity in these areas, and Telangana will need sustained public investment to bridge this foundational gap.
The Road Sector Policy, 2025
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The Government of Telangana on 9th December, 2025, launched a dedicated road sector policy at Telangana Rising Global Summit.
The policy aims to create a long term, dedicated road sector framework for Telangana that strengthens connectivity from villages to mandal headquarters, to district centres, and finally to the Hyderabad core urban area, thereby supporting the state’s broader economic growth vision.
Key Features -
The policy is Telangana’s first standalone “road sector policy”, intended to guide road infrastructure development in the state over the next 20 years.
Introduction of a Road Asset Management System to enable systematic inventorying, maintenance planning, performance monitoring, and timely upgradation of road infrastructure.
The emphasis on integrated road planning, ensuring road networks are designed to complement mass transit systems such as metro, suburban rail, and bus corridors by improving last mile and feeder road connectivity.
Adoption of the Hybrid Annuity Model (HAM) for select road projects to balance public funding with private execution, improving construction quality and long term maintenance outcomes.
Strategic strengthening of the road network for economic connectivity, linking industrial hubs, rural markets, logistics nodes, and tourism destinations to support trade, investment, and regional economic growth.
Relevance -
Hyderabad’s traffic density has increased by 35%, pushing congestion, the policy’s focus on roads, bus corridors and last mile connectivity aims to shift travel to high capacity public transport and reduce pressure on saturated roads.
Despite the expansion of double lane roads from 6,093 km in 2014 to 12,060 km in 2023 and four lane roads from 669 km to 1,154 km, growth has remained uneven, and the Road Sector Policy, 2025, through a 20 year roadmap and Road Asset Management System, aims to correct this by prioritising high traffic corridors and upgrading rural industrial, logistics and tourism links in under served districts.
G. Rajasthan
Rajasthan Trade Promotion Policy, 2025
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On 3rd December 2025, the Rajasthan Government approved the Rajasthan Trade Promotion Policy, 2025 which aims to strengthen retail and wholesale sectors, improve credit availability, support Micro, Small and Medium Enterprises (MSMEs), and simplify compliance norms for traders and businesses.
The policy is part of a broader set of reforms expected to improve the state’s trade ecosystem and business environment.
Key Features -
Aims to provide equal opportunities for small traders by enhancing access to markets and modern retail networks.
Improves credit access for traders and MSMEs to support business expansion and working capital needs.
Promotes MSME growth within the trade ecosystem.
Encourages investment expansion in retail and wholesale sectors and improves credit access for small traders, including digital and e-commerce integration.
Proposes relaxation of provisions under the Rajasthan Shops and Commercial Establishments Act, 1958 to simplify business operations.
Promotes growth in supply chains, logistics linkages, and trader participation in organised markets.
Enhances employment opportunities by leveraging a growing consumer market.
Relevance -
It is pertinent to note that the policy’s proposal to relax provisions under the Rajasthan Shops and Commercial Establishments Act, 1958, is a critical EoDB reform. The erstwhile Act of 1958 is known to impose rigid hours, burdensome paperwork, and the threat of inspections, which disproportionately hurt smaller businesses.
The trade and services sector as a whole contributes the largest share to the state’s economy, accounting for over 45.92 % of the Gross State Value Added (GSVA).The trade sector in Rajasthan includes over 10.5 lakh retail outlets,making it a significant contributor to the state’s economy and employment. The policy aims to enhance employment opportunities by leveraging this massive, growing consumer base, ensuring that small traders receiveequal opportunities to participate in modern retail networks and the digital economy.
Furthermore, greater MSME participation in trade channels can enhance value chains and support local manufacturing, craftsmanship, and traditional trade clusters. The policy, thus, assists Rajasthan in competing with neighbouring states by making its trade environment more predictable and facilitative.
Rajasthan Tourism Policy, 2025
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The Rajasthan Government, on 10th December 2025, launched the Rajasthan Tourism Policy, 2025 to strengthen tourism infrastructure, streamline project approvals, and position the state as a premier global tourism destination.
The policy seeks to boost investment, enhance tourist experience through digital initiatives, and improve connectivity and safety across key tourism circuits.
Key Features -
Introduces a single-window clearance system for all tourism-related approvals to reduce delays and attract faster private investment.
Promotes private-sector participation through PPP projects and Viability Gap Funding (VGF) support for improving air connectivity.
Establishes Special Tourism Zones (STZs) and develops new themes such as religious routes, bravery circuits, forest tourism hubs, bird-watching circuits and light-sound shows.
Expansion of home-stays, paying-guest units, and eco-friendly mobility options like e-vehicle tours.
Enhances digital tourism through mobile apps, digital museums, virtual and immersive experiences, projection mapping, and new tourism portals.
Improves cultural tourism by developing heritage craft museums and platforms for local art and crafts.
Strengthens tourist safety with a 24×7 call centre, Tourist Assistance Force, panic button systems, CCTV coverage, and structured feedback mechanisms.
Relevance -
Tourism contributes around 12% to Rajasthan’s GDP, and job creation underscores the need for accelerated capital injection.The introduction of the single-window system directly removes bureaucratic friction and delays, which were previously a major deterrent, thus ensuring faster private investment flows for Rajasthan.
Rajasthan recorded an immense volume of 18 crore domestic tourists and 17 lakh foreign tourists in 2023, reflecting the need for a modern policy to handle high tourist volume. This volume often leads to saturation in traditional hubs like Jaipur and Udaipur. The policy addresses this by establishing Special Tourism Zones (STZs) and developing new themes (like bravery and religious circuits), which decentralises tourism activity, reduces pressure on core cities, and promotes balanced regional development in underserved areas.
The policy’s focus on Public-Private Partnerships (PPP) and Viability Gap Funding (VGF) for air connectivity upgrades directly supports the growth in both domestic and foreign arrivals. For example, the free allotment of land for the Kishangarh airport approach-lighting system aims to ensure safe movement during fog/night, directly facilitating more flights and tourist access.
Lastly, Rajasthan’s unique heritage is the core tourist draw. Developing heritage craft museums and promoting local art links the tourism growth directly to the lakhs of jobs created in the traditional crafts and local services sector, ensuring that tourism benefits are inclusive and sustainable.
Non-Resident Rajasthani (NRR) Policy, 2025
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The Rajasthan Government, on 4th December 2025, approved the Non-Resident Rajasthani (NRR) Policy, 2025 to strengthen engagement with the Rajasthani diaspora and encourage long-term social and economic linkages with the state.
The policy aims to attract investments, promote cultural exchange, and create an institutional mechanism for supporting NRR communities globally.
Scope - The policy applies to Rajasthani diaspora communities within India and overseas, covering investment facilitation, cultural outreach, diaspora support services, and long-term engagement mechanisms.
Key Features -
The Non-Resident Rajasthani (NRR) Policy, 2025 establishes a structured institutional and engagement framework to maximize the contribution of the Rajasthani diaspora globally.
Establishment of the NRR Investment Facilitation Cell and appointment of NRR Investment Liaison Officers for coordinated handling of investment proposals.
Rajasthan Foundation Chapters will appoint Investment Coordinators to identify investment leads and share policy information.
Formation of NRR Investment Advisory Councils comprising diaspora experts to design sector-specific investment roadmaps.
Celebration of Pravasai Rajasthani Day and NRR Honour Awards to recognise diaspora contributions.
Creation of a diaspora database covering skills, businesses, locations, and investment capacity.
New initiatives such as Global Youth Connect, Celebrate Rajasthan, and Diaspora for Development.
A structured grievance-redressal system for overseas Rajasthanis.
Relevance -
The Pravasi Bharatiya Divas (PBD) experience demonstrates the economic value of structured diaspora engagement, reflected in India’s annual remittance inflows exceeding $ 125 billion and in PBD-linked state investors’ summits that generate significant MoUs and accelerate project implementation. Drawing on these outcomes, Rajasthan seeks to leverage its diaspora’s capital and expertise through NRR Investment Advisory Councils.
Further, the most recent Pravasi Rajasthani Diwas successfully drew participation from over 8,700 NRRs owing to which the state announcement of ₹ 1 lakh crore worth of new projects through 421 MoUs. This data highlights the necessity for formal, year-round engagement, which the NRR Investment Advisory Councils and Global Youth Connect programs are designed to provide.
The state already benefits from 26 operational Rajasthan Foundation Chapters spread across major global and domestic cities. The policy mandates that these chapters appoint Investment Coordinators, leveraging this existing global network to systematically identify and vet investment leads, thereby transforming the chapters from purely cultural hubs into economic intelligence units.
The new diaspora database will not just count heads but map skills, business interests, and investment capacity. This data allows the NRR Investment Advisory Councils to design sector-specific investment roadmaps (e.g., in tourism, renewable energy, mining) that align precisely with the expertise and capital of the diaspora, maximising the socio-economic impact of schemes like Diaspora for Development.
H. Uttar Pradesh
One District, One Cuisine (ODOC) Initiative
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The Uttar Pradesh Government on 5th December, 2025 launched a “One District, One Cuisine” (ODOC) initiative aimed at identifying, branding, and promoting the distinctive traditional culinary heritage of each of the state’s 75 districts to boost food tourism, local culture, and economic opportunities.
The programme builds on the success of the One District, One Product (ODOP) scheme launched in 2018 to revive indigenous industries and turn every district into a specialized export hub. The new initiative intends to replicate this model by integrating district specific cuisines into broader marketing, tourism, and economic ecosystems.
Scope – The initiative covers all 75 districts of Uttar Pradesh, focusing on documenting signature local dishes, improving quality and hygiene standards, facilitating brand building, and creating market linkages for culinary products at state, national and international levels.
Key Features -
Mapping and branding of one signature cuisine per district to showcase unique local food culture.
Promotion of dishes through improved quality control, hygiene, packaging, and marketing for broader reach.
Support for small food enterprises, restaurants, cafés and food startups linked to district cuisines.
Encouragement of food tourism and culinary experiences as part of district identity campaigns.
Integration of the initiative with festivals, tourism events, and promotional platforms to attract domestic and international visitors.
Relevance -
Despite Uttar Pradesh possessing a diverse and rich culinary heritage, much of its tourism potential remains untapped. The ODOC initiative strategically provides each district with a platform to promote its signature cuisine, converting local food culture into a compelling new draw for culinary tourism.
The policy essentially creates a new, high-value segment within the state’s massive tourism economy: culinary tourism. Food and beverage spending constitutes a significant portion (approximately 25%) of a tourist’s expenditure. By branding 75 unique cuisines and integrating them into tourism circuits, the state ensures that a higher share of tourist revenue flows directly to local food businesses, vendors, and farmers. Culinary tourism is a high-yield spend category, and this policy is a strategic attempt to capture that revenue.
Further, Leveraging Lucknow’s recent designation as a UNESCO Creative City of Gastronomy immediately grants the policy an anchor point. This global recognition acts as a high benchmark, validating the state’s culinary heritage and emphasizing a commitment to quality and authenticity across the ODOC initiative.
The strong results of the ODOP programme including 1.25 lakh toolkits distributed, over ₹ 6,000 crore in sanctioned loans, 8,000+ entrepreneurs supported, 30 CFCs approved, and 44 products geo-tagged shows that district based branding works well in Uttar Pradesh. ODOC essentially applies the same model to food culture, giving each district a chance to create a unique identity, enhance tourism appeal, and generate jobs.
I. Gujarat
Draft Of Science, Technology, And Innovation Policy (2025–30)
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On 9th December, 2025 the Government of Gujarat unveiled the draft of Science, Technology, and Innovation (STI) Policy 2025–30 to accelerate self-reliance (‘Atmanirbharata’) in critical technologies and reduce dependence on imports.
The policy focuses on achieving self-reliance (‘Atmanirbharata’) in critical sectors by reducing dependence on imported technologies.
Key Features -
The policy aims to establish a ₹ 500 crore innovation fund to financially support researchers, start-ups, and academic institutions.
A separate corpus of ₹ 1,500 crore will be established to drive long-term technological development aligned with the Viksit Gujarat@2047 vision.
The policy prioritises the development of frontier technologies like AI, machine learning, 5G-6G, and semiconductors while upgrading traditional sectors such as chemicals and textiles.
Ambitious goal to raise total Science, Technology, and Innovation expenditure in key sectors to at least 1% of the Gross State Domestic Product (GSDP) by 2030, significantly higher than the national average of approximately 0.6%
Mandate for all state government departments to earmark 1% of their annual budgets specifically for Research and Development (R&D) by the end of the policy cycle, ensuring a widespread, sustained focus on innovation across the administration.
Set an ambitious target of 1,000 Intellectual Property (IP) filings annually over the policy period. This includes patents, designs, trademarks, and technology transfers to promote commercialization of indigenous research.
Dedicated Science and Technology clusters will be established, starting with the Ahmedabad-Gandhinagar region as a flagship model to integrate academia and industry.
A single window digital portal is planned to provide innovators with seamless access to R&D infrastructure and testing facilities.
The Government aims to build a talent pool of 1 lakh highly skilled scientific personnel by 2030 to support these emerging sectors.
Relevance -
Gujarat’s manufacturing sectors, including chemicals and textiles, are embedded in an industrial ecosystem where India imports over 80% of critical technology inputs, creating cost and supply chain vulnerabilities. By prioritising self-reliance, the policy can reduce import dependence, stimulate local R&D, lower production costs, and strengthen resilience for traditional industries.
Currently, India faces severe semiconductor talent gap, reflecting a national shortfall of 2.5–3 lakh skilled professionals in chip design, fabrication, and AI, compounded by a 10% deficit in technical roles and declining inter-state migration.In response, Gujarat has set a major policy objective to train 1 lakh skilled scientists by 2030, aiming to build a robust local talent ecosystem, retain expertise, and support the Viksit Gujarat@2047 vision.
J. Odisha
Pharma And MedTech Policy, 2025
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The Odisha Cabinet on 6th December, 2025 approved the Odisha Pharmaceuticals and Medical Devices Policy, 2025 to position Odisha as a strategic manufacturing hub for healthcare and life sciences in Eastern India.
It targets bridging the gap in domestic production of bulk drugs and high-tech medical devices.
Key Features -
Offers a 30% capital investment subsidy on plant and machinery with no upper cap for large projects.
Development of dedicated zones like the Odisha Pharma Park and Odisha MedTech Park with plug-and-play facilities.
Provides a wage subsidy of ₹ 12,500 per month for male workers and ₹ 15,000 per month for female workers for five years.
Includes 100% exemption on stamp duty and land conversion charges, plus a power tariff reimbursement of ₹ 2 per unit.
The Odisha Pharmaceutical Development Cell (OPDC) will serve as the single-window nodal agency for implementation.
Relevance -
India’s pharmaceutical industry, though the world’s third largest by volume, remains heavily import-dependent for Active Pharmaceutical Ingredients (APIs) and bulk drugs. In FY 2023–24, bulk drug imports stood at ₹ 37,721.88 crore, with China accounting for 71.72%. Odisha’s policy addresses this vulnerability by offering a 30% capital investment subsidy on plant and machinery, with no upper cap for large projects.
The 100% exemption on stamp duty/land charges and the ₹ 2 per unit power tariff reimbursement significantly reduce the initial fixed operational and transaction costs for new units. These non-fiscal incentives are essential for boosting the Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margins of companies, improving the long-term viability of the investment.
The pharmaceutical industry exhibits strong employment spillover effects, with global evidence indicating an employment multiplier of about 8.54. This implies that every direct job in pharmaceutical manufacturing generates roughly 8.5 additional jobs across logistics, packaging, chemicals, utilities, R&D, and allied services. Accordingly, the creation of 1,000 direct jobs under the policy could yield over 8,500 indirect and induced jobs, substantially boosting industrialisation and employment in Eastern India.
III. Social Sector Schemes:
A. Himachal Pradesh
The ‘Chitta’ Information Reward Scheme
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On 1st December 2025, Himachal Pradesh announced a Chitta (synthetic-heroin drug) Information Reward Scheme as part of the state’s intensified campaign to eradicate “Chitta” and other narcotics from the state.
Objective - This reward scheme aims to mobilise public support and citizen participation in unmasking drug traffickers by incentivising credible information on “chitta” trade, thereby strengthening enforcement, dismantling drug networks, and ultimately eliminating narcotics from the state.
Target Cohorts-
Citizens who provide actionable intelligence on drug trafficking stand to receive monetary rewards up to ₹ 10 lakh.
Youth and students, who were drawn into the awareness walkathon, were targeted for greater engagement and sensitisation against drug use.
Key Provisions -
A cash reward scheme for informants, offering between ₹ 10,000 and ₹ 10 lakh, depending on the quantity of narcotics involved, as specified below:
₹ 10,000 for up to 2 grams;
₹ 25,000 for up to 5 grams;
₹ 50,000 for up to 25 grams;
₹ 5 lakh for up to 1 kg;
₹ 10 lakh for more than 1 kg.
Citizens can submit information via the emergency number 112 or contact the nearest police station, and informants’ identities will be kept anonymous.
Government agencies, including the Anti-Narcotics Task Force (ANTF), the Special Task Force (STF), police, and departments of health, education, and social justice, have been directed to coordinate efforts under this scheme.
Similar Initiatives In Other States -
Gujarat Informant Reward System: Initiated in 2021, Gujarat’s Informant reward system offers informants up to 20% of the value of seized drugs, and over three years the state has paid more than ₹ 11 crore to 970 informants, underscoring its impact on drug-law enforcement.
Relevance -
Himachal’s rugged, remote terrain makes drug trafficking hard to detect, as synthetic drugs like chitta often enter through Punjab-bordering districts such as Una, Kangra, and Chamba using lateral, less-monitored routes. These geographic constraints slow down conventional policing and ANTF surveillance. The new reward scheme strengthens enforcement by tapping local knowledge, turning residents into reliable intelligence sources who can identify suspicious movement in areas that formal agencies struggle to monitor
The reward mechanism improves intelligence flow to the police and ANTF, enabling faster crackdowns and reducing the supply of synthetic drugs circulating among young people.
B. Odisha
Enhanced Support Under MGNREGA Extended To 2028–29
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The Odisha Government on 2nd December, 2025 approved the extension of enhanced state support under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) till the financial year 2028–29.
Objective - The decision aims to provide sustained wage employment to rural households across the state by ensuring up to 300 days of employment annually, with additional state-level wage assistance over and above the central MGNREGA wages.
Beneficiaries - The extended support will benefit 5.57 lakh rural families across 30 blocks in nine districts, strengthening livelihood security and reducing distress migration.
Key Features –
Eligible rural households will receive up to 300 days of wage employment per year, significantly higher than the standard 100-day guarantee under MGNREGA.
For the first 100 days, workers will receive a state wage top-up of ₹ 98 per day in addition to the central MGNREGA wage.
For the remaining 200 days, beneficiaries will continue to receive regular MGNREGA wages with continued state support.
The scheme covers 30 blocks across nine districts, targeting areas with high vulnerability to distress migration.
Relevance –
Notably, over three to five lakh labourers migrate to different states from Odisha every year in search of work. Further, 18–31% of households in migration-prone blocks of districts of western and southern Odisha, which experience migration for longer than six months.
Under the current policy apparatus, eligible rural households will receive up to 300 days of wage employment per year, significantly higher than the standard 100-day guarantee under MGNREGA. The extended support will benefit 5.57 lakh rural families across 30 blocks in nine districts, targeting areas with high vulnerability to distress migration.
The Central MGNREGA wage rate for unskilled workers in Odisha for FY 2025-26 is ₹ 273 per day. For the first 100 days, workers will receive a state wage top-up of ₹ 98 per day in addition to the Central MGNREGA wage. Thus, the total daily wage for the first 100 days will be ₹ 371/day. For the remaining 200 days, beneficiaries will continue to receive regular MGNREGA wages.
The combined provision of up to 300 days of work and a ₹ 98 daily state top-up effectively raises the reservation wage in Odisha, making high-risk, low-security migration to distant brick kilns or construction sites far less attractive and directly helping curb distress migration from western and southern districts.
Textile And Sericulture Development Schemes
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The Odisha Cabinet on 6th December, 2025 approved two flagship schemes, the Mukhyamantri Bayan Shilpa Bikas Yojana (MBSBY) and Mukhyamantri Resham Bikas Yojana (MRBY) to boost the state’s textile, handloom, and sericulture sectors
These align with the broader vision of positioning Odisha as a major textile hub in Eastern India.
Key Features -
The Government has allocated ₹ 490 crore over five years under MBSBY to incentivise new textile manufacturing units and expand employment opportunities.
A separate provision of ₹ 274 crore has been allocated under MRBY specifically for strengthening the sericulture industry infrastructure over the next five years.
The schemes promote the production of non-violent “Ahimsa” silk while providing support for silkworm seed preparation and species conservation.
Cooperative societies will be empowered to facilitate better marketing of silk products to prevent distress sales by farmers and ensure fair pricing.
These initiatives are aligned with the Odisha Apparel And Technical Textile Policy, 2022 and Industrial Policy Resolution, 2015to ensure integrated industrial growth.
Relevance -
The allocation of ₹ 490 crore (under MBSBY) and ₹ 274 crore (under MRBY) represents a massive, targeted capital expenditure injection into the rural, decentralised economy. This funding is designed to transition the textile and sericulture sectors from low productivity cottage industries to modern manufacturing by providing necessary infrastructure, machinery, and market linkages.
Promoting non-violent ‘Ahimsa’ silk is a strategic economic opportunity for Odisha, as it taps into India’s rapidly growing sustainable and ethical fashion market. This is significant as the vegan clothing segment is expanding at over 23.5% CAGR with ethical apparel gaining significant market share by 2031.
Handloom provides livelihoods to around 1.17 lakh workers across 63,223 households in Odisha (2019 Census), yet low incomes and economic distress have driven substantial migration, including up to 12,000 Odisha weavers to Tiruppur and tens of thousands annually to Surat’s textile hubs from Ganjam district; MBSBY and MRBY are projected to generate large scale local employment by improving infrastructure and market access, thereby reducing distress driven migration.
Odisha’s handloom and sericulture sectors face significant market access challenges, with many weavers cut off from direct markets due to limited cooperative reach and weak digital adoption. Only about 5% of handloom collectives use e-commerce as a sales channel, restricting their reach and leaving small producers vulnerable to intermediaries and distress sales. The new schemes explicitly aim to strengthen primary cooperatives with working capital, marketing support, and collective branding to bridge these gaps.
C. Chhattisgarh
Mukhyamantri Urja Rahat Abhiyan
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On 1st December 2025, the Chhattisgarh Government rolled out Mukhyamantri Urja Rahat Abhiyan (M-URJA Scheme), providing major tariff relief to domestic electricity consumers across the state.
Under the revised structure, households consuming up to 200 units of electricity per month will pay only 50% of the billed amount.
Key Features –
Consumers using up to 200 units per month will receive a 50% subsidy.
Approximately 6 lakh consumers using between 200 and 400 units will also receive the half-bill benefit for up to 200 units for the next one year as a transition measure.
As per a previous decision of the Government dated 1st August 2025, the Government had sharply curtailed the subsidised limit from the previous 400 units (under the old scheme) down to 100 units. This latest modification to 200 units represents a significant policy reversal aimed at restoring relief and providing stability to middle- and lower-income households.
Power distribution companies have started updating billing systems, and consumers will see revised bills from the next billing cycle.
Dedicated help desks have been set up to handle billing and subsidy-related queries during the transition.
Target Beneficiaries –
Domestic electricity consumers across Chhattisgarh, particularly low and middle-income households, cover more than 42 lakh families.
Relevance –
It is pertinent to note that the previous scheme ‘Half Electricity Bill Scheme’ gave domestic electricity consumers a 50% rebate on their energy consumption which previously covered up to 400 units per month. Further, performance metrics from the prior scheme revealed that more than 40 lakh domestic consumers benefited, saving approximately ₹ 2,145 crore over a few years.
The one-year transition benefit serves as a strategic nudge for the 6 lakh middle-income consumers in the 200–400 unit slab to adopt rooftop solar. With substantial subsidies under the PM Suryaghar Muft Bijli Yojana and the potential for zero bills through net metering, the policy shifts consumers from short-term subsidy dependence to long-term clean energy generation and self-reliance.
Mukhyamantri Nagarotthan Yojana
Source: Click Here
The Chhattisgarh Government on 2nd December, 2025 approved 26 infrastructure projects worth ₹ 429.45 crore across 13 municipal corporations under the Mukhyamantri Nagarotthan Yojana.
Announced in the 2025–26 Budget, the scheme aims to develop iconic urban infrastructure and cover all 13 municipal corporations in its first phase, followed by municipal councils and nagar panchayats.
Key Features -
The scheme allocates funds for high-impact civic projects including marine drive expansions, hi-tech bus terminals, auditoriums, lake beautification, and water supply strengthening.
Implementation will occur in phases, starting with municipal corporations in Phase-I and subsequently extending to smaller urban bodies like municipal councils and nagar panchayats.
District level committees headed by Collectors have been formed to oversee project execution, ensuring adherence to quality standards and timelines.
Relevance -
Many urban households in Chhattisgarh relied on partial piped water and septic tanks rather than full sewer connections; piped network and sewerage coverage lagged behind urban needs (national MOHUA diagnostics show basic services often don’t keep pace with urbanisation). The targeted investments (₹429.45 crore for 26 projects) enable strengthening of water networks and sewerage upgrades in municipal corporations, reducing dependence on groundwater septic systems and improving service reliability.
The funding directly supports the development of hi-tech bus terminals (e.g., in Dhamtari and Raigarh) and auditoriums. These projects are essential for improving inter-city connectivity for the state’s growing urban population and creating quality public spaces, thereby establishing a modern, vibrant urban identity.
Raipur’s STP system has a total capacity of 206 MLD with several units operating at or near full utilisation and processing ~179 MLD on average indicating limited headroom for rising wastewater loads.The scheme components free up capacity and justify additional STP augmentation investments to avoid environmental stress.
D. Bihar
Subsidy Scheme For Plastic Crates, Leno Bags And Fruit Trap Bags
Source: Click Here
On 1st December, 2025, the Bihar Government approved the “Special Intervention Scheme” under the fourth Agricultural Roadmap 2024-25.
Outlay - The scheme has a financial outlay of ₹ 22.25 crore.
The scheme aims to reduce post-harvest losses and improve storage and transport for Bihar’s fruit and vegetable farmers by providing subsidised packaging materials to help raise their incomes.
Target Beneficiaries -
Fruit and vegetable farmers across all 38 districts of Bihar who are registered on the State’s DBT portal, and have not already benefited from this scheme in the past three years, are eligible for plastic crates and leno bags.
Banana growers get additional benefit of subsidised fruit trap bags to protect produce from pests.
Key Provisions -
Under the scheme, a total budget of ₹ 22.25 crore has been approved for 2024-25 to subsidise plastic crates, leno bags, and fruit trap bags for eligible farmers.
The scheme offers an 80% subsidy on plastic crates and leno bags and a 50% subsidy on fruit trap bags for banana growers, with fixed unit costs of ₹ 400 per plastic crate, ₹ 20 per leno bag, and ₹ 30 per fruit trap bag.
Each farmer can receive 10–50 plastic crates, 100–1,000 leno bags, and 300–10,000 fruit trap bags under the scheme.
Target Beneficiaries - Permanent Bihar residents registered on the state agriculture department’s DBT portal who have not availed scheme benefits in the last three years.
Relevance -
Notably, the most critical economic benefit is the direct increase in the saleable yield and quality realisation for farmers. By preventing 10% of post-harvest losses, the scheme effectively increases the farmer’s gross revenue without requiring an increase in crop area or output. This is a highly efficient way to boost farmgate income and is more direct than traditional price subsidies.
Also, the ‘Special Intervention Scheme’ addresses Bihar’s severe post-harvest crisis which causes over ₹10,700 crore in annual wastage due to poor handling, and lack of proper packing. The scheme directly intervenes by an 80% subsidy on high-quality e-packaging (plastic crates/leno bags). This aims to reduce high recorded losses (e.g., 22%-30% for fruits, up to 39% for tomatoes), boosting the saleable yield and income for eligible farmers.
Furthermore, the Special Intervention Scheme aligns perfectly with Bihar’s Fourth Agricultural Roadmap of 2023-28, which explicitly emphasizes developing post-harvest infrastructure and strengthening Farmer Producer Organizations (FPOs). This scheme provides a low-cost, high-impact intervention by subsidizing modern handling and packaging where Bihar is weak, effectively creating a strong pipeline for value chain convergence.
E. Uttar Pradesh
Establishment Of Divyang Rehabilitation Centres
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On 2nd December, 2025, Uttar Pradesh approved the establishment and operation of District Divyang Rehabilitation Centres (DDRCs) in all 18 divisional headquarters of the state to strengthen services for persons with disabilities.
The initiative aims to shift the State towards self-reliance in disability rehabilitation infrastructure, reducing dependence on irregular central funding.
Key Features –
DDRCs will be set up and run using state Government funds.
The centres will provide services such as identification of persons with disabilities, disability camps, assistive device repair, prosthetic fitment, gait training, and early intervention.
They will also help beneficiaries access Government welfare schemes, disability certificates, and Unique Disability Identity Document (UDID) cards.
Clinical services like counselling, physiotherapy, and speech therapy will be available at these centres.
Issues with Current Model - At present, only 11 out of 37 existing DDRCs are located in divisional headquarters, while many face operational issues due to irregular Central grants and low staff honorarium.
Public Investment Planned – The centres will be fully financed by the Uttar Pradesh Government, replacing partial and inconsistent central funding support.
Central Scheme Alignment - The initiative aligns with the Rights of Persons with Disabilities (RPwD) Act, 2016 by operationalising its mandate for accessible rehabilitation and assistive services.
Relevance –
Uttar Pradesh accounts for 15.5% of India’s 2.68 million persons with disabilities which is highest among all Indian states. The decision enhances institutional rehabilitation support by strengthening services at the divisional level.
Further, the DDRCs under the Central umbrella District Disability Rehabilitation Scheme (DDRS) have historically faced fund-unpredictability and delays in grant release, which adversely impacted staff retention and the continuity of essential services. This new state-funded model directly fixes those issues by ensuring consistent financial allocation.
Also, placing fully functional DDRCs in all 18 divisional headquarters drastically reduces the travel burden and indirect costs for beneficiaries in surrounding districts. This brings specialised services like prosthetic fitment, gait training, and early intervention closer to the rural and underserved population.
It is pertinent to note that Uttar Pradesh has a high pendency, with 1,68,363 UDID applications pending, including 1,14,652 pending for more than six months, many for more than six months. By localising UDID services at the divisional level, the policy speeds up identification, certification, and enrollment, enabling faster access to education, employment, and financial welfare schemes.
The DDRCs are institutional tools for implementing the RPwD Act, 2016. By localising the issuance of UDID cards and disability certificates (a mandatory prerequisite for all welfare schemes), the initiative directly attacks the systemicexclusion errors that prevent PwDs from accessing their entitlements (employment, education, financial aid).
F. Maharashtra
Mukhyamantri Baliraja Shet-Panadan Rasta Yojana
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The Maharashtra Cabinet approved the ‘Mukhyamantri Baliraja Shet Pandan Rasta Yojana’ on 7th December, 2025.
Aim - The scheme aims to provide all weather, motorable farm‑to‑field roads across rural Maharashtra to improve connectivity between farmers’ fields and villages. It seeks to ensure timely movement of agricultural produce, and make access to markets more affordable and convenient for farmers.
Target Beneficiaries -
The primary beneficiaries are farmers in rural Maharashtra who currently face muddy, broken approach roads that obstruct sowing, harvesting, and timely transport to markets, especially during the monsoon.
In the first phase, the scheme is targeted to benefit about 50,000 farmers covering around 1 lakh acres of agricultural land.
Key Provisions -
Approval of 100% mechanised construction to accelerate project execution, enhance construction quality, and reduce reliance on manual labour.
Systematic removal of encroachments from roads identified in village maps to ensure unobstructed and durable connectivity.
Compulsory tree plantation along both sides of all roads, adopting the Bihar model or leveraging MGNREGA support for implementation.
Dedicated financial provisioning through cluster-based tendering (25-km clusters), with statewide execution and oversight by a high-level committee chaired by the state’s Revenue Minister.
Relevance -
Poor rural roads and weak logistics are one of the major reasons which cause nearly 22% post-harvest foodgrain losses in India directly reducing farmer incomes. The scheme addresses this by converting muddy, seasonal farm tracks into reliable all-weather, motorable access up to the field level.
Evidence from rural road expansion shows around 15% increase in agricultural output. Maharashtra’s farm-to-field road scheme will improve connectivity, lower transport costs, and ease market access, likely boosting agricultural output, crop diversification, and use of modern inputs.
The mandate for 100% mechanised construction is a key economic decision aimed at efficiency and quality assurance. Mechanisation accelerates project execution (reducing the time cost of capital), ensures standardised, durable road quality, and reduces dependence on low-productivity manual labor, which aligns with modern infrastructure standards.
G. Madhya Pradesh
Revision Of The Ladli Behna Scheme
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The Madhya Pradesh Government on 4th December 2025, announced a revised version of the Mukhyamantri Ladli Behna Yojana, increasing the monthly assistance to ₹ 1,500 for eligible women.
The scheme will be expanded to include a lump-sum advance option, proposed for rollout on 8th March, 2026 (International Women’s Day).
The revision aims to help women access upfront funds for household needs, micro businesses, and livelihood activities.
Target Beneficiaries - Covers 1.26–1.30 crore women who are residents of Madhya Pradesh and meet the scheme’s eligibility criteria (age 21–60 and household income limits as per scheme rules).
Key Features -
The monthly assistance under the scheme has been increased from ₹ 1,250 to ₹ 1,500 per month for eligible women.
The scheme will now follow a two-part payment structure, consisting of a regular monthly transfer and a separate lump-sum component to be announced by the state.
Beneficiaries may choose between monthly payments and a lump-sum advance under the updated system.
The proposed lump-sum amount ranges from ₹ 18,000 to ₹ 50,000, equal to one-year or three-year advance payments.
Women who prefer monthly support will continue receiving the existing ₹ 1,500 Direct Benefit Transfer (DBT).
An expert committee under the Women and Child Development Department will design eligibility rules, utilisation norms, and fund-disbursement procedures.
All payments will continue through the Ladli Behna portal and the state’s existing DBT infrastructure.
Relevance -
Among those unable to access formal credit, 37% rely on moneylenders and 35% on friends and family, with informal loans carrying an average interest rate of ~28% per annum and no fixed repayment terms, pushing households into financial vulnerability. In this context, the ₹ 18,000–₹ 50,000 lump-sum advance under the revised Mukhyamantri Ladli Behna Yojana can act as a zero-interest substitute for high-cost informal borrowing, improving household balance sheets, reducing debt stress, and strengthening women’s financial resilience
The scheme is one of the largest women focused welfare programmes in Madhya Pradesh, covering about 1.26–1.30 crore women (equivalent to around 15% of the state’s entire population) across the state, making benefit changes significant for household income.
The increase in monthly assistance from ₹ 1,250 to ₹ 1,500 represents a 20% increase in the direct financial benefit. This translates to an additional ₹ 3,000 per year per woman, injecting several thousand crores annually directly into the household economy, which stimulates local demand and consumption, especially in rural areas.
H. Haryana
Extension Of Retirement And Death Gratuity To UPS Employees
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The Haryana Government, on 5th December 2025, issued an office memorandum extending retirement gratuity and death gratuity benefits to state government employees covered under the Unified Pension Scheme (UPS).
Beneficiaries - This order applies to all state Government employees enrolled under the UPS, primarily employees recruited on or after 1st January, 2006, who had been under the National Pension System (NPS)earlier.
Key Features -
The Government has extended retirement gratuity and death gratuity benefits to all state employees covered under the UPS.
These gratuity benefits will now apply to employees who were earlier under NPS and have been shifted to UPS, covering those recruited on or after 1st January, 2006.
The office memorandum ensures that UPS employees receive a lump-sum payout at retirement or to the family in case of death during service, bringing them closer to defined-benefit security comparable to the Old Pension Scheme (OPS).
Similar Initiatives In Other States - States such as Himachal Pradesh, and Punjab have already restored the OPS. By extending both retirement and death gratuity within its contributory UPS, Haryana has become a notable first mover in providing OPS-like defined-benefit protections to its Post-2006 Recruits without abandoning the core principle of contributory pension reform.
Relevance -
The order directly benefits an estimated over 2 lakh state Government employees who were recruited on or after 1st January, 2006, and moved to UPS from the market-linked NPS. This large workforce segment lacked the assured lump-sum gratuity benefits provided under the OPS.
Gratuity benefits offer a vital, immediate financial safeguard. The maximum limit for Death-cum-Retirement Gratuity (DCRG) for Haryana Government employees was already enhanced to ₹ 25 lakh in January 2025. Extending this ₹ 25 lakh protection to UPS employees immediately secures their families against death in service and provides a substantial lump sum at retirement.
Unlike the full restoration of OPS (which creates an unfunded future liability equivalent to an estimated 1-2% of GDP if done nationally), this measure is an incremental, cost-managed step within the contributory UPS framework, which already requires the Haryana Government to make an additional 8.5% contribution to a pool corpus.
III. Investment Announcements:
A. Telangana
Telangana Rising Global Summit 2025
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The Telangana Rising Global Summit 2025 commenced on 8th December, 2025, with the state Government formalising 35 investment commitments worth ₹ 1.88 lakh crore on Day 1, among the largest single day investment mobilisations by any state.
The summit marked a strategic push to reposition Telangana as a future ready investment hub, with commitments spanning deep technology, renewable energy, smart infrastructure, advanced manufacturing, and data driven industries, aligned with the state’s long-term development roadmap.
Targets -
Build a strong industrial and technology baseload for Telangana, anchored in deep tech, clean energy, and advanced manufacturing.
₹ 75,000 crore have been allocated to scale up deep tech sectors, strengthening R&D, innovation clusters, and high end technology capabilities.
₹ 1.04 lakh crore have been committed to future technologies and net-zero, smart urban infrastructure, supporting sustainable and tech driven urban growth.
Investments focus on expanding renewable power capacity and advancing green hydrogen to support long-term energy security and decarbonisation.
Significant investments targeted at electronics, EVs, steel, textiles, PCBs, and defence manufacturing under the Bharat Future City initiative, positioning Telangana as a diversified manufacturing hub.
Key Investors - Major MoUs include Vin Group’s ₹ 27,000 crore investment in renewable energy and EVs, Krishna Power’s ₹ 5,000 crore steel plant, Seetharam Spinners’ ₹ 3,000 crore textile unit, and strategic investments by global funds and infrastructure players such as Brookfield and Axis Ventures.
Relevance -
The commitments place Telangana as a national leader in next generation investments, extending its strong IT and services base into manufacturing, clean energy, and deep tech ecosystems.
Expanded energy, manufacturing, and infrastructure capacity directly supports data centres, deep tech, and other capital intensive industries that require reliable power and industrial depth.
The investments are closely aligned with Telangana’s ambition to achieve a $ 1 trillion (₹ 1 lakh crore) economy by 2034 and $ 3 trillion (approximately ₹ 3 lakh crore) by 2047, providing early momentum toward these milestones.
Further, total commitments of ₹ 5.75 lakh crore by the summit’s conclusion signal strong investor confidence in the state’s policy stability, growth potential, and execution capacity, strengthening long term economic resilience.
B. Tamil Nadu
The Rising Investors Conclave
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On 8th December, 2025, at the Tamil Nadu Rising Investors Conclave in Madurai, the Tamil Nadu Government secured major investment commitments of ₹ 36,000 crore aimed at accelerating industrial and regional development.
Target - Generate approximately 56,000–56,766 new jobs across industrial and services sectors, strengthening workforce absorption and broad based economic growth across Tamil Nadu.
Sectorial Projects -
PM MITRA Integrated Textile Park in Virudhunagar (joint with the Central Government), expected to create ~1 lakh jobs once operational.
Development efforts in engineering and mega food parks in Theni and Technology, Information, Development, Environment and Entertainment Park (TIDEL) Parks (including a new facility in Madurai).
Expansion of TIDEL NEO parks in Sivaganga, Virudhunagar, Tirunelveli, and Kanyakumari.
HD Hyundai MoU for establishing a shipyard in Tuticorin (Thoothukudi).
Emerging sectors highlighted include AI and technology industries, adding approximately 2,500 jobs in Madurai’s expanding industrial ecosystem.
Relevance -
Over the past four years, Tamil Nadu has attracted ₹ 11.83 lakh crore in investments, creating opportunities for approximately 34 lakh people, with over 80% of MoUs already implemented.
Investments will be strategically distributed across Madurai, Thoothukudi, Hosur, Coimbatore, and other districts, promoting more balanced regional development. This approach aims to reduce the long-standing over-dependence on Chennai by strengthening industrial and economic activity in multiple growth centres across the state, while also improving local employment opportunities and infrastructure in these regions.
There’s more emphasis on clearances, infrastructure support, law and order, skilled human resources, and administrative efficiency de-risks investments without heavy fiscal giveaways.
Sustained execution and policy consistency strengthen Tamil Nadu’s manufacturing, IT, and infrastructure base, laying the foundation for long term, inclusive growth.
IV. Other Decisions:
A. Andhra Pradesh
Multi-Pronged Strategy To Curb Human Elephant Conflict
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The Andhra Pradesh Forest Department on 8th December, 2025, announced a multipronged strategy to tackle the wild elephant issue troubling North Andhra (Vizianagaram and Srikakulam districts) for 15 years since elephants entered from Odisha’s Lakheri forests in 2007.
The aim is to mitigate crop damage, human casualties, and fear by driving elephants back to forests or Odisha or translocating them safely.
Key Strategies -
The state is planning to deploy 4 kumki elephants from Karnataka to drive wild herds back to forests toward the Odisha borders.
They seek to open negotiations with Odisha’s cooperation or Government to take back some of the elephants.
The strategy includes diverting some elephants to the Gucchimi elephant camp in Parvathipuram Manyam district, which spans 400 acres and is equipped with solar fencing, before translocating them to Sri Venkateswara National Park located in the Seshachalam Hills of Chittoor district.
Herd behaviour will be studied over the next 2 months to inform the strategy, with wildlife expert Raman Sukumar having already assessed the sites and priority will be given to translocating mostly female herds.
If translocation efforts fail, the elephants will be housed at the Gucchimi camp as a fallback measure, noting that the deployment of kumki elephants has been delayed until the camp is fully prepared.
Similar Initiatives In Other States - Kerala addresses human–elephant conflict through Rapid Response Teams, Kumki Elephant Units in Wayanad and Thrissur, and AI-based early warning systems at forest–village interfaces, supported by community participation in reporting elephant movements and protecting habitats.
Relevance -
Andhra Pradesh records an average of 30 human deaths annually due to wildlife conflict, with elephants accounting for a major share in northern districts. A multi-pronged mitigation strategy combining kumki deployment, early warning systems, fencing, and habitat-based management can substantially reduce human elephant encounters across the state.
Over the past decade, elephant incursions have caused crop and property damage exceeding ₹ 6 crore. Deploying kumki elephants, along with solar-powered fencing, has proven effective in deterring crop raids, safeguarding agricultural livelihoods, and reducing recurring economic losses.
Elephant translocation, supported by behavioural monitoring of herds, can redirect movement away from habitation zones and significantly reduce the risk of human casualties.
Between 2013 and 2024, elephant incursions led to 26 human deaths and damage to 5,947 acres of cropland, highlighting the urgent need for preventive intervention. Establishing behavioural study units and elephant camps has shown potential in pre-empting raid patterns, mitigating agricultural losses, and preventing fatalities.
B. Maharashtra
Toll Exemption For Electric Vehicles
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On 14th December, 2025, the Maharashtra Assembly Speaker directed the state Government to ensure full implementation of toll exemptions for electric vehicles (EVs) across all major highways within eight days, reinforcing the state’s commitment to green mobility under the Maharashtra Electric Vehicle Policy, 2025.
The directive, issued following widespread complaints from EV owners, declaring continued toll collection illegal and ordering its immediate cessation with refunds of wrongly collected amounts.
Salient Features -
The exemptions apply to key highways, including the Mumbai–Pune Expressway, Samruddhi Mahamarg, and the Atal Setu, among others.
The initiative addresses backend integration issues between FASTag systems and the VAHAN database, which led to EVs being misclassified and wrongly charged.
The state was directed to expand EV charging infrastructure and upgrade existing facilities to reduce range anxiety and encourage wider adoption.
Authorities are drafting operational protocols for toll refunds, compliance monitoring, and technical updates to ensure correct EV classification at toll plazas.
Relevance -
Maharashtra is a national leader in EV adoption, achieving the second-highest overall EV sales in India in FY 2024–25, contributing approximately 12% of the country’s total EV sales (2,46,221 units). With a large and growing base of EV users, inconsistent toll enforcement directly undermines consumer trust. Full implementation of toll waivers therefore aligns regulatory practice with Maharashtra’s market leadership in EVs, and removes a key cost barrier for existing users.
Maharashtra aims for 30% of all new vehicle registrations to be electric by 2030, including 40% for two-wheelers and three-wheelers. Illegal tolling an EV directly contradicts this goal. The full enforcement of the waiver is a necessary step to meet these ambitious penetration targets.
The correction of FASTag VAHAN mismatches and parallel investments in public charging infrastructure signal a shift from policy intent to on ground execution, supporting green mobility and lower commuting costs.
Bamboo Biomass Mandate In Thermal Power Projects
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On 2nd December, 2025, the Maharashtra Government issued a resolution under the Bamboo Industry Policy 2025, mandating all public and private thermal power projects to blend 5-7% bamboo biomass (bamboo coal) with conventional coal.
The mandate seeks to cut pollution from coal plants, advance green energy adoption, reduce fossil fuel reliance, and stimulate bamboo cultivation and entrepreneurship statewide.
Key Provisions -
The policy mandates 5–7% bamboo biomass co-firing in all public and private thermal power plants beginning December 2025.
The Government has allocated ₹ 50 crore this fiscal for bamboo entrepreneurship, committed ₹ 1,534 crore between 2025 and 2030 for cultivation, processing, and infrastructure, and established a ₹ 300 crore venture capital fund to support startups and MSMEs.
The plan establishes 15 bamboo clusters targeting 1.572 crore tonnes of annual production, sets up micro-CFCs for artisans, and extends incentives including interest subsidies and electricity and stamp duty waivers.
The policy leverages Geographic Information Systems (GIS), Artificial Intelligence (AI), blockchain, and drones to strengthen supply chains, encouraging industry adoption through Public Linked Incentives (PLI) schemes.
Central Scheme Alignment- It aligns with the National Bamboo Mission by positioning bamboo as a sustainable cash crop for farmers on wastelands via the MGNREGA scheme.
Relevance -
The policy creates markets for 5 lakh jobs and ₹ 50,000 crore investment over 10 years, aiding rural farmers amid coal import dependence. It tackles stubble burning alternatives and boosts energy security, with clusters enabling scalable biomass supply for reliable co-firing.
Maharashtra’s 27063 MW thermal capacity stands to benefit from reduced emissions, as bamboo’s rapid growth and strong carbon sequestration potential contribute to India’s net-zero 2070 targets without requiring significant structural or engineering changes to existing thermal power plant boilers that would normally be required when switching fuels.
The policy is backed by enormous fiscal support: ₹ 1,534 crore for cultivation/processing, a ₹ 300 crore venture capital fund for startups, and a large ₹ 4,271 crore proposal for a training pilot. This strategic public investment is designed to leverage private capital for a targeted ₹ 50,000 crore investment over 10 years, demonstrating a clear public-private partnership model.
C. Bihar
Illegal Mining Informer Reward Scheme
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The Bihar Government, under the Mines and Geology Department, has launched a new reward scheme on 9th December 2025 to curb illegal sand mining.
The scheme encourages public participation by offering cash rewards for information leading to the seizure of vehicles involved in illegal mining. Further, the scheme emphasises strict accountability for law enforcement, warning of disciplinary action against police officers who fail to check illegal activities.
Key Features -
Informers will receive a cash reward of ₹ 5,000 for providing information that leads to the seizure of tractors involved in illegal mining.
A higher reward of ₹ 10,000 is offered for information leading to the seizure of larger vehicles like trucks or heavy machinery such as JCBs.
The administration has guaranteed the confidentiality of the informers’ identities to protect them from potential retaliation by the mining mafia.
The scheme mandates strict disciplinary action, including the filing of FIRs, against local Station House Officers (SHOs) if illegal mining is found continuing in their jurisdiction.
The Government has also introduced a hefty fine of ₹ 10 lakh on vehicle owners found involved in illegal mining activities to act as a strong deterrent.
Relevance -
Demonstrating the policy’s immediate implementation, the state Government has already rewarded 24 individuals with cash prizes of ₹ 10,000 (for trucks) and ₹ 5,000 (for tractors) for providing credible intelligence on sand mafias.
The scheme addresses the massive financial drain on the state exchequer, with Enforcement Directorate investigations revealing that illegal sand mining syndicates have caused a revenue loss of approximately ₹ 400 crore to the Government.
To curb illegal practices, a Mining Task Force operates at the district level, conducting regular raids and reviews. Notably, in FY 2024-25 alone, over 33,000 raids were carried out, leading to 3,475 FIRs, 1,252 arrests, 10,702 vehicle seizures, and ₹ 136.37 crorecollected in penalties.The Informer Reward Scheme significantly aids this Task Force by providing the precise, real-time intelligence necessary to convert generalised enforcement efforts into highly effective, targeted raids, thereby increasing the rate of seizures and penalty collection.
By mandating strict disciplinary action and the filing of First Information Reports (FIRs) against local Station House Officers (SHOs) if illegal mining persists in their jurisdiction, the Government establishes a top-down pressure mechanism. This measure is designed to ensure official vigilance and reduce potential complicity in illegal activities.
The scheme serves as a direct, community-led intelligence response to the escalating threat of violence against state personnel. By enabling a confidential public intelligence approach, it reduces the need for constant overt engagement by police and mining officers in high-risk areas, thereby mitigating the frequent attacks by sand mafias.
V. Key Takeaways for the Week: What you should know
Administrative Decentralisation as a Growth Instrument: States are actively re-engineering governance structures to compress decision cycles and localise authority. Andhra Pradesh’s three-zone economic model delegates land allocation and single-window clearances to zonal CEOs, moving away from a uniform state-wide approach. The intent is explicit: target 15% GSDP growth by aligning policy, infrastructure, and investment with regional economic strengths focusing on ports and pharma in Vizag, agro-processing in Amaravati, and renewables and mining in Rayalaseema.
Fiscal Repair Through Compliance Design: Urban finance reforms are focusing on widening the base rather than increasing taxes. Delhi’s integration of trade licences with property tax responds to a stark compliance gap i.e ₹1,908 crore collected against a ₹4,300 crore target, with licence compliance below 40%. Haryana’s unified municipal law empowers 87 urban local bodies to revise fees within prescribed bands, addressing a system where transfers accounted for over 50% of ULB revenues and own non-tax revenues undershot estimates by over 30%.
Regulatory Rationalisation and Decriminalisation: States are systematically reducing the cost of formality. Rajasthan’s Jan Vishwas amendments decriminalise minor offences across 11 Acts, easing compliance pressure on nearly 41 lakh MSMEs and shifting enforcement from courts to administrative adjudication. Maharashtra’s formalisation of community service for minor offences responds to prison overcrowding exceeding 155% capacity, while avoiding the economic loss of incarcerating individuals in the 18–50 working-age group, which constitutes nearly 87% of inmates.
Strategic State Capital in Emerging and Productive Sectors: Investment policy is increasingly tied to ecosystem creation rather than incentives alone. Telangana committed ₹1,000 crore through a Fund of Funds to catalyse a $20 billion quantum economy by 2035, explicitly positioning the state as patient capital in a pre-commercial sector. Tamil Nadu’s toy manufacturing policy targets a global market valued at $180 billion, while Odisha’s labour reforms raise overtime limits by nearly 188% to improve asset utilisation in organised retail and logistics.
Taken together, the developments tracked in this fortnight underline a structural shift in Indian governance. States are increasingly prioritising rule-based administration over discretion, civil penalties over criminalisation, and digital oversight over manual enforcement. Municipal reforms aim to lift own-source revenues in systems where transfers still account for over 50% of urban finances. Labour and business regulations are being recalibrated to improve asset utilisation and workforce participation, while infrastructure delivery is tied to real-time dashboards and escalation mechanisms.
What stands out is the fiscal and administrative specificity. Odisha extended MGNREGA support up to 300 days to stabilise rural incomes, while Maharashtra formalised community service to address prison overcrowding exceeding 150% capacity.
India’s growth and governance outcomes will increasingly diverge across states based on institutional choices, not central allocations alone. Tracking these decisions is therefore essential to understanding where state capacity is compounding and where it remains constrained.
States in Motion will continue to map that divergence, one reform cycle at a time.