Sudden Withdrawal of Assam’s Clean Energy Policy Raises Alarms for Green Investment

Assam’s government has abruptly withdrawn its flagship clean energy policy, raising serious concerns among potential investors and the renewable energy industry. The policy, first introduced in February 2025, was designed to attract major investment into green hydrogen and renewables by providing a range of subsidies, eased guarantees, and a clear roadmap for industry players. However, the Assam cabinet rescinded the policy in July without any public explanation, a decision that caught developers and investors off-guard and left active projects in limbo.

Major firms, including NTPC Green, Larsen & Toubro, Sembcorp, and Ocior, had been weighing substantial commitments to new renewable and hydrogen projects. The state’s reversal, unaccompanied by an official public announcement, has spooked stakeholders who fear that inconsistent policies may lead to further delays or abandonment of planned investments. The move throws into question Assam’s future as a renewable energy hub and signals a broader risk for Indian states looking to attract capital to their energy transition programmes.

Assam’s scrapped scheme is particularly notable given the region’s previous underperformance in clean energy adoption. The incentives for transmission infrastructure, reduced bank guarantee requirements, and support for high-impact initiatives were seen as pivotal for closing the gap and placing Assam on the national clean energy map. Policy volatility, experts argue, deters both domestic and foreign investors, making long-term planning risky and undermining the competitiveness of local green industries.

 As global benchmarks highlight, stable clean energy frameworks substantially lower financing costs and drive economic growth, suggesting Assam’s misstep may reverberate beyond its borders.