Policy rollback adds to uncertainty for solar, wind and hydrogen projects in the North-east

Assam has withdrawn its flagship clean energy policy, unveiled in February this year, casting uncertainty over investment commitments in one of India’s least developed renewable energy regions.

The policy, which had promised incentives including subsidies on transmission charges and relaxed bank guarantee requirements, was aimed at attracting capital into solar, wind and green hydrogen projects. An internal memorandum dated 18 July confirmed that the integrated clean energy policy had been rescinded following a state cabinet decision, though no reason was cited.

The move comes after the state government had already put its green hydrogen policy on hold earlier in June, surprising investors. Energy firms including NTPC Green Energy, Larsen & Toubro, Sembcorp of Singapore and Abu Dhabi-based Ocior Energy had submitted bids for projects in the state.

Industry executives told Reuters that inconsistent state policies risk undermining investment flows into India’s clean energy sector, particularly in emerging markets such as the North-east where infrastructure is still developing. Assam’s power department has yet to issue an official notification or respond to queries on the withdrawal.

The reversal highlights the challenges of policy volatility at the state level, even as India seeks to accelerate renewable adoption nationwide and position itself as a global hub for green hydrogen.