States Weekly: April 9, 2025

Newsletter by Akshat Singh

Published April 9, 2025

Big News: NITI Aayog and the Press Information Bureau release the Fiscal Health Index (FHI), assessing the fiscal resilience of 18 major states in India; Bihar Electricity Regulatory Commission (BERC) introduces the Renewable Purchase Obligation, its Compliance and REC Framework Implementation Regulations, 2025; Karnataka Electricity Regulatory Commission(KERC) introduces the Terms and Conditions for Open Access Regulations, 2025; Rajasthan launches the Rajasthan Logistics Policy, 2025; and more.

Health 

Assam sanctions $22.2 million for the implementation of the State Government Budget for Free Drugs ServicesScheme. The scheme aims to make drugs easily available in government hospitals and health centers and reduce the economic burden on patients. Source: Sentinel; In detail: Cabinet Decisions

Climate Change and Energy

Andhra Pradesh Electricity Regulatory Commission (APERC) introduces the Proposed Amendments in Regulations due to the Andhra Pradesh Integrated Clean Energy (ICE) Policy 4.0 amending the 2023 regulations concerning grid-interactive solar rooftop photovoltaic systems under net and gross metering. The original regulation has been amended to cover several key aspects, including provisions for distribution companies to work with distributed energy resource aggregators and the introduction of an application fee structure for solar rooftop systems. Source: Solar Quarter; In detail: Proposed amendments in regulations

Bihar Electricity Regulatory Commission (BERC) introduces the Renewable Purchase Obligation, its Compliance and REC Framework Implementation Regulations, 2025, introducing a new category of distributed renewable energy in its renewable power obligation (RPO) for 2030. The Commission has proposed a target of fulfilling 4.5 percent of RPO requirements through distributed renewable energy by 2030. Source: Mercom; In detail: BERC Renewable Purchase Obligation, its Compliance and REC Framework Implementation Regulations, 2025

Haryana Electricity Regulatory Commission (HERC) issues the Tariff Order, 2025-26 revising the power tariff rate across the state. According to the order, the power rates in state will increase from $0.0023 per unit for domestic consumers, and $0.0035 per kilovolt-ampere hour (kVAh) for industrial consumers. Source: Mint; In detail: HERC Tariff Order

Karnataka increases the sales tax on diesel from 18.44 percent to 21.17 percent resulting in a price hike of $0.023 per litre. Source: India Today; In detail: Karnataka Sales Tax on Diesel

Karnataka Electricity Regulatory Commission (KERC) issues the Procedure for Data Collection, Scrutiny and Verification of the Captive Status of Power Projects and their Users. As per the procedure, the status of captive power projects and captive users will be verified annually, and applications for verification will need to be submitted to the respective power distribution companies before May 31, following the financial year for which captive status is claimed. Source: Mercom; In detail: Procedure for Captive Status Verification

Karnataka Electricity Regulatory Commission(KERC) introduces the Terms and Conditions for Open Access Regulations, 2025. The updated regulations aim to allow specific electricity consumers to use the state's power transmission and distribution systems, improve accessibility to electricity and promote competition in the power sector. Source: Solar Quarter; In detail: KERC Terms and Conditions for Open Access Regulations, 2025

Madhya Pradesh Electricity Regulatory Commission (MPERC) issues the Retail Electricity Tariff Order, 2025-26. The order n increases the power charges across all consumer categories. The tariff order introduces higher fixed charges and energy charges for industrial, non-industrial, commercial, and power-intensive consumers. Source: Mercom; In detail: MPERC Tariff order

Kerala notifies the Kerala Energy Conservation and Sustainable Building Code Rules, 2025. The rules outline the procedures to be followed during the design, construction, and completion phases of buildings being constructed in the state. Additionally, the rules outline the provisions for commercial building construction to ensure energy conservation and environmental sustainability under the Energy Conservation and Sustainable Building Code (ECSBC) published by Bureau of Energy Efficiency (BEE). Source: The Hindu; In detail: Kerala Energy Conservation and Sustainable Building Code Rules, 2025

Finance

Nothing critical to report this week.

Industrial Policy and Business Regulations 

Rajasthan launches the Rajasthan Logistics Policy, 2025 aiming to cultivate an investment-friendly industrial environment in the state and establish it as a leading logistics hub. The policy offers capital subsidies of up to 25 percent on eligible investments and interest subsidies of 7 percent on term loans for the development of logistics infrastructure. Source: Fibre2fashion; In detail: Rajasthan Logistics Policy, 2025

Rajasthan implements the Rajasthan Textile and Apparel Policy, 2025 aiming to establish the state as a new center of modern textile and apparel manufacturing. The policy provides up to 28 percent capital subsidies, 5 percent interest subvention on loans, and additional incentives for employment generation, regional development, and environmental sustainability projects. Source: Rediff; In detail: Rajasthan Textile and Apparel Policy-2025

Arunachal Pradesh releases the Arunachal Pradesh Tourism Policy, 2025 with an aim to attract domestic and international visitors to the state. The policy emphasizes on the development of experiential tourism farm tourism, wine tourism, wellness and spiritual tourism, adventure tourism, film tourism, ecotourism, and tribal tourism. Source: The Statesman

Land Acquisition and Labor Regulations 

Nothing critical to report this week.

Infrastructure and Governance

Gujarat passes the Gujarat Stamp (Amendment) Bill, 2025 to amend the Gujarat Stamp Act of 1958. The amendments aim to lower public rates and streamline the rates. Key changes include the capping of stamp duty on loans up to $116,933 to $58.46. Additionally, heirs of a deceased daughter can correct right-related deficiencies by paying a stamp duty of $2.3. Source: Desh Gujarat; In detail: Gujarat Stamp (Amendment) Bill, 2025

Gujarat publishes the draft Gujarat State Child Protection Policy aiming to strengthen child safety measures across the state. The draft policy mandates comprehensive background checks, regular child protection training for all employees, and strict reporting requirements for any suspected child abuse or neglect. Source: Desh Gujarat; In detail: Draft Gujarat State Child Protection Policy

Madhya Pradesh approves the "Mukhyamantri Sugam Parivahan Sewa", a new public transport service under the public-private partnership (PPP) model. This move aims to strengthen rural, urban and intercity bus services in the state. Under this initiative, the government will not purchase buses itself but will instead partner with private operators through the PPP model. A total of $11.83 million has been approved as equity for this transport service. Source: Business Standard; In detail: Madhya Pradesh Cabinet Decisions

Assam notifies the Assam Panchayat (Financial) (Amendment) Rules, 2025. The amendments specify the new rules for different works by Panchayat bodies according to their estimated cost. The rules also focus on revenue generation to make the bodies self-reliant. Source: Sentinel; In detail: Assam Cabinet Decisions

Himachal Pradesh announces the regularization of services of contractual employees who have completed two years of continuous service as of March 31, 2025. This means that the contractual employees will be considered as full-time government employees and receive benefits accordingly. Source: Hindustan Times; In detail: Cabinet Decisions

Punjab amends the Punjab State Mining Minerals Policy, 2022, aiming to end illegal sand mining and reduce the price of sand and gravel in the state. Source: New Indian Express; In detail: Punjab State Mining Policy, 2022

Water and Sanitation

Nothing critical to report this week.

Center - State Relations 

Delhi signs a memorandum of understanding with the Union Ministry of Health and Family Welfare to implement the "Ayushman Bharat Pradhan Mantri Jan Arogya Yojana"(AB-PMJAY) in the city, becoming the 35^th state/Union Territory to implement the health insurance scheme. West Bengal is now the only state which has not implemented the scheme. Source: NDTV; In detail: Press Release

NITI Aayog and the Press Information Bureau release the Fiscal Health Index (FHI), a comprehensive assessment of the fiscal resilience of India's 18 major states. The report, based on 2022-23 data from the Comptroller and Auditor General (CAG), highlights Odisha as the top-performing state, followed by Chhattisgarh, Goa, Jharkhand, and Gujarat. Punjab, Andhra Pradesh, and West Bengal emerged as the weakest, grappling with high debt burdens and fiscal deficits. Source: Taxscan; In detail: Fiscal Health Index 2025

Any Other

Nothing critical to report this week.

Programs & Projects