Bihar Unveils Renewable Energy Policies, Signs Major MoUs Worth Over ₹5,300 Crore

Intending to position Bihar as a frontrunner in India’s clean energy transition, the state government formally launched two landmark policies—the Bihar Policy of New and Renewable Energy Sources 2025 and the Bihar Policy for Pumped Storage Project 2025—at a high-level event held at Gyan Bhawan, Patna.

The launch ceremony was attended by top officials and ministers, including Bihar Energy Minister Bijendra Prasad Yadav, Industries Minister Nitish Mishra, BERC Chairman Amir Subhani, ACS (Industry) Mihir Kumar Singh, Energy Secretary Manoj Kumar Singh, and senior leadership from SBPDCL and BSPGCL.

MoUs Inked to Drive Large-Scale Renewable Projects

A series of strategic Memorandums of Understanding (MoUs) were signed during the event, targeting significant investment and capacity additions in solar power and energy storage systems.

Bihar Renewable Energy Development Agency (BREDA) signed an MoU with Avaada Group for the development of 1 GW of ground-mounted and floating solar projects, subject to feasibility studies.

Bihar State Power Generation Company Ltd (BSPGCL) inked two major MoUs—one with the Solar Energy Corporation of India (SECI) to jointly develop renewable energy projects worth INR 3,000 crore, including floating solar, and another with Larsen & Toubro (L&T) to establish a 116 MW/241 MWh Battery Energy Storage System (BESS) at Kajra, Lakhisarai, with an investment of INR 837.66 crore.

BSPGCL also partnered with NTPC Green for the development of a 1,000 MW BESS project in Bihar, with an estimated investment of INR 1,500 crore.

Policy Backing and Investor Incentives

Speaking at the event, Energy Minister Bijendra Prasad Yadav invited both domestic and international investors to participate in Bihar’s green energy growth. 

“These forward-looking policies will accelerate clean energy adoption and position Bihar as an active contributor to India’s Net Zero targets,” he said.

Industries Minister Nitish Mishra announced that the upcoming Bihar Industrial Policy 2025 would be aligned with the state’s energy vision. He highlighted the ongoing development of a 1,700-acre integrated manufacturing cluster in Gaya, intended to attract companies from both conventional and non-conventional energy sectors.

ACS Industry's Mihir Kumar Singh emphasized the critical role of clean fuels in industrial growth. “The Biofuels Promotion Policy 2025 offers robust incentives—capital subsidies, SGST and power duty exemptions, and employment-linked incentives—making Bihar a favorable destination for investments in ethanol and compressed biogas (CBG),” he said.

Regulatory Support and Simplified Approvals

Energy Secretary Manoj Kumar Singh outlined several fiscal and non-fiscal incentives under the new energy policies, including a 100 percent reimbursement of SGST, full exemption on stamp duty and registration fees, waiver of State Transmission Utility (STU) charges, and a five-year exemption on customs duties for imported project equipment.

He added that the state is committed to ensuring policy stability, fast-track approvals, and land availability to facilitate investor confidence.

BERC Chairman Amir Subhani assured full regulatory backing for the implementation of the policies. He stated that the Bihar Electricity Regulatory Commission remains open to reviewing existing frameworks based on industry feedback.

Industry Participation 

The launch event witnessed strong participation from key industry stakeholders and public sector units. Representatives from Tata Power, Avaada, L&T, IntelliSmart, Adani Power, NTPC Green, EESL, SJVN, THDC, JSW Energy, Greenko, NHPC, Vikram Solar, Ernst & Young, PTC India, Power Finance Corporation, and others praised the policy frameworks.