The Assam government has unexpectedly paused its much-awaited green hydrogen policy, surprising potential investors and adding to growing worries over the state’s shifting stance on clean energy, according to a Reuters report, reported The Economic Times.
The policy, first unveiled in February, was designed to draw major investments into Assam’s renewable energy sector—a space where the state has lagged behind compared to other parts of India. Initial interest had come from prominent firms such as NTPC Green, Larsen & Toubro, Sembcorp (listed in Singapore), and Abu Dhabi-based Ocior.
Now, with the policy on hold, these companies are being forced to re-assess their investment strategies and financial expectations. This move could affect projects involving millions of dollars in capital.
“States routinely review and adjust their policies and incentives based on current needs,” said Krishna Kumar Dwivedi, Principal Secretary of Assam’s power department. He did not provide a specific reason for the policy suspension or for recent reductions in incentives.
This is not the first time Assam has made abrupt changes to its clean energy framework. In June, the state revised its solar policy by cutting transmission subsidies and increasing bank guarantee requirements, triggering unease among investors.
Energy analysts and developers have raised concerns over what they see as policy unpredictability. “Investors want consistent and stable policies, even if they aren’t perfect,” said Debabrat Ghosh, Head of India at Aurora Energy Research.
Adding to the challenge, Assam has limited access to renewable energy sources, which could force green hydrogen projects to depend on power from neighbouring states. This would raise energy costs and make the projects less competitive.
“Without proper transmission subsidies, power expenses could rise by 10–15 percent,” said an official from a major Indian renewables firm. “Unless these costs are addressed, Assam risks falling behind other states with more investor-friendly policies.”
Despite the current pause, the Assam government is reportedly working on a revised draft of the green hydrogen policy, expected to be released by the end of this month.
