Bihar Unveils Landmark Renewable Energy Policies, Seals Strategic MoUs Worth Thousands of Crores

Bihar's government has launched significant policies aimed at enhancing the state's renewable energy landscape, including multiple MoUs with major industry players to attract investment and support India's Net Zero goals.

Patna, July 26, 2025 — In a significant push to position Bihar as a national leader in clean energy, the state government launched the Bihar Policy on New and Renewable Energy Sources 2025 and the Bihar Policy for Pumped Storage Projects 2025 at a high-level ceremony at Gyan Bhawan.

The event saw the presence of prominent dignitaries including Energy Minister Shri Bijendra Prasad Yadav, Industries Minister Shri Nitish Mishra, BERC Chairman Shri Amir Subhani, ACS (Industry) Shri Mihir Kumar Singh, Energy Secretary Shri Manoj Kumar Singh, MD SBPDCL & BSPGCL Shri Mahendra Kumar, and senior officials from industry bodies such as the Confederation of Indian Industry and Bihar Industries Association.

Key highlights included the signing of multiple Memoranda of Understanding aimed at accelerating Bihar’s renewable energy ecosystem:

• BREDA & Avaada Group: Development of 1 GW ground-mounted and floating solar projects (subject to feasibility).
• BSPGCL & SECI: Floating solar and other RE projects valued at ₹3,000 crore.
• BSPGCL & Larsen & Toubro: A 116 MW/241 MWh Battery Energy Storage System at Kajra, Lakhisarai (₹837.66 crore investment).
• BSPGCL & NTPC Green: 1000 MW BESS project worth ₹1,500 crore.

Energy Minister Bijendra Prasad Yadav called the policies "forward-looking," inviting domestic and global investors to partner in Bihar’s green journey and contribute to India’s Net Zero commitments. Industries Minister Nitish Mishra emphasized policy synergy. "An integrated manufacturing cluster on 1700 acres in Gaya is opening avenues for energy sector investment," he noted, aligning with the upcoming Bihar Industrial Policy 2025.

ACS Industry Shri Mihir Kumar Singh highlighted the Biofuels Promotion Policy 2025, offering subsidies and tax exemptions to attract investment in ethanol and CBG. Energy Secretary Manoj Kumar Singh outlined attractive incentives including:

• 100% SGST reimbursement
• Stamp duty and registration fee waivers
• Exemption on STU charges
• 5-year customs duty exemptions for imports

Regulatory support was pledged by BERC Chairman Shri Amir Subhani, who reiterated openness to revising regulations for effective policy implementation.

Industry Participation & Outlook

Top energy players like Tata Power, Avaada, NTPC Green, L&T, Adani Power, JSW Energy, Vikram Solar, and Ernst & Young attended, with many commending Bihar’s proactive steps towards clean energy. Bihar was hailed as a promising investment destination in the renewable sector. The event concluded with a vote of thanks from MD Mahendra Kumar, reaffirming Bihar's commitment to a sustainable energy future.