Assam, India scraps its clean energy policy and threatens renewable investment
According to sources familiar with the issue, India's northeastern Assam state has withdrawn its flagship policy on clean energy announced in February. This decision threatens millions of dollars worth of planned investments.
Assam, India's largest state, offered financial incentives and tax waivers to encourage investment in a region which has been slow to adopt renewable energy.
The policy of February offered subsidies for power transmission, and relaxed bank guarantee requirements in order to support clean energy projects within the state.
A memo from 18 July, reviewed by, stated that the cabinet had withdrawn the integrated clean energy policies, without stating the reasons for the reversal.
Assam’s power department didn’t respond to an email asking for comment on the policy change.
Industry sources claim that the Assam government did not withdraw its clean energy policy.
Sources and documents reviewed by the said revealed that energy companies such as NTPC Green and Larsen & Toubro along with Singapore-listed Sembcorp and Abu Dhabi's Ocior had bid for green hydrogen project in Assam.
Uncoordinated policies by state governments can pose a challenge to planned investments. This was the opinion of a senior NTPC executive who declined to be named due to the sensitive nature the issue.
Investors were surprised to learn that Assam put on hold its green hydrogen policy. Sethuraman N R, Mayank Bhardwaj, and Ronojoy Mazumdar edited the article.
(source: Reuters)
