The Government of Bihar has notified the ‘Bihar Policy for Promotion of Bihar New and Renewable Energy Resources 2025’ (Bihar RE Policy), superseding a similar policy which was notified in 2017.
The Bihar RE Policy targets to harness 23.968 GW of renewable energy sources and 6.1 GW of storage by the financial year 2029-30.
Key incentives which are declared under the Bihar RE Policy are set out below:
- 100% exemption on electricity duty for the captive/ open access consumers through reimbursement from the concerned utility for a period of 15 (fifteen) years from the date of commissioning of the project.
- 100% exemption from State Goods and Service Tax Act (SGST) for all materials required for development of renewable energy projects and EV charging stations to be provided for a period of 5 years.
- Open access clearance to be granted for a period of 25 (twenty five) years or lifespan of the project, whichever is earlier.
- 100% reimbursement of stamp duty/ registration fees levied on lease/ sale/ transfer of industrial land/ shed to be granted for the first time sale/ lease of the land required for the project.
- No fee on power or Local Area Development Fund will be applicable on small hydel projects.
- 100% reimbursement of land conversion fee/ change in land use for conversion of agricultural land.
- 100% exemption of transmission and wheeling charges on renewable energy projects for a period of 15 (fifteen) years from the date of commission of the projects is provided. Further, grid connected renewable energy projects with storage systems selling power within the state will be provided higher exemption from the transmission and wheeling charges for a period of 20 (twenty) years.
- Exemption from state transmission utility charges to be provided in line with the policy of Bihar Electricity Regulatory Commission.
- The renewable energy generating entity will be allowed to retain 100% of proceeds of carbon credit, if any, from an approved Clean Development Mechanism (CDM) project or mechanism under United Nations Framework Convention on Climate Change or any other mechanism developed by the Government of India.
Additionally, the Bihar RE Policy also aims to encourage development of EV charging station infrastructure within the state. Towards the aforesaid objective, The Bihar RE Policy provides that EV charging stations powered by renewable energy will receive land at 50 per cent concessional rates for the first 1,000 stations or 50 MW of capacity, whichever is higher, along with exemption from transmission and wheeling charges for 25 years.
Analysis: The Bihar RE Policy has been formulate to encourage renewable energy plant developers to consider Bihar as a viable option to set up renewable energy plants. Renewable energy has become a key driver towards energy transition and achieving India’s target of achieving Net-Zero target by 2070. It is also heartening to see that EV charging stations being a key component of the EV ecosystem also finds in the Bihar RE Policy and efforts are being made to develop the EV ecosystem in the state.
Please click here to read the full policy