Assam’s bold ambitions to become a clean energy hub have hit a sharp detour. In a sudden turnaround, the state has withdrawn its flagship clean energy policy originally announced in February 202, sending shock waves through the renewable sector and raising serious questions about policy stability.

The now-scrapped policy had offered an array of incentives aimed at attracting investment into solar, wind, green hydrogen, and related sectors. These included subsidies for power transmission, relaxed bank guarantee requirements, and fiscal support to ease project development in a region historically behind on renewable adoption.

An internal government memo dated July 18 indicates that the policy’s withdrawal was approved by the state cabinet, but no official reason has yet been communicated. Despite demands, the power department has remained silent, and the state has not issued any formal public notice of the rollback.

The abrupt reversal comes at a time when several major energy companies, including NTPC Green, Larsen & Toubro, Sembcorp, and Ocior, had already entered bidding processes under the policy for green hydrogen and renewable projects. These firms and other investors now face uncertainty about the viability and returns of their projects, and many are reassessing their commitments.

Critics warn that this policy flip undermines Assam’s credibility as a reliable partner in the clean energy economy. Consistency and trust is essential for drawing capital into long-term infrastructure sectors like renewables, where project gestation is lengthy and risks are high.

The timing compounds the damage. Earlier in June, the state reportedly paused its green hydrogen policy - a key pillar of its clean energy vision. That pause already surprised many industry watchers, and the full rollback now appears as a further escalation of doubt.

From an investment perspective, this reversal is more than a policy change; it’s a red flag. Renewable energy and green hydrogen projects require months, often years, of planning, approvals, and infrastructure investment. When a state pivots so dramatically without a public rationale, capital is far more likely to migrate to more predictable jurisdictions.

Assam’s development strategy had tied this clean energy policy to its broader “Advantage Assam 2.0” industrial push. Green hydrogen was intended to provide thousands of jobs, industrial diversification, and positioning of Assam as a clean energy frontier in Northeast India. But with the policy’s abrupt annulment, that vision faces a serious credibility gap.

At the same time, the move raises politico-social challenges. Clean energy projects must often negotiate land rights, community consent, and environmental safeguards. In Assam, where these dimensions are sensitive, the withdrawal may reflect pressures at the grassroots or unresolved conflicts over land use and local interests.

To repair the damage, Assam must act swiftly. Issuing a transparent explanation is the first step to

Assam’s Clean Energy Policy Rollback Casts Shadow Over Renewable Future

In a move that has surprised industry observers and investors alike, the Government of Assam has scrapped its Clean Energy Policy 2025, just months after unveiling it as a cornerstone of its green development vision. The policy, introduced earlier this year, had aimed to position the state as a renewable energy leader in the Northeast, aligning with India’s national target of achieving 500 GW of non-fossil fuel capacity by 2030.

The withdrawal, which was approved by the state cabinet in July but made public only recently, has stirred uncertainty across the renewable energy sector. The policy had outlined incentives for investment in solar, wind, biomass, and green hydrogen, including fiscal subsidies, land allotments, and exemptions on transmission charges. These were designed to attract both domestic and international investors to Assam’s growing energy market.

According to officials familiar with the development, the decision followed internal concerns over the policy’s financial implications and land acquisition challenges. However, the state has yet to issue an official statement explaining the rationale for its reversal, which has only deepened confusion among stakeholders.

The rollback comes as a blow to several major companies, including NTPC Green, Larsen & Toubro, and Sembcorp, which had expressed interest in setting up green hydrogen and renewable power projects under the policy framework. “This sudden change of direction could dampen investor confidence, especially in sectors that require long-term policy stability,” noted a senior energy consultant.

Beyond the immediate economic impact, the reversal raises questions about Assam’s environmental commitments. The state had been lauded for linking its clean energy roadmap to industrial diversification and rural electrification. With its abundant natural resources and strategic location, Assam was expected to play a key role in promoting sustainable development across the Northeast.

Experts warn that the move risks isolating Assam from national and global renewable initiatives. India’s National Green Hydrogen Mission and private climate investments depend heavily on regional cooperation and consistent state policies. The loss of momentum could redirect potential investments toward other states such as Gujarat, Tamil Nadu, and Rajasthan, where renewable ecosystems are more mature and predictable.

Environmental groups have expressed disappointment, calling the decision a “setback for sustainable governance.” Some have speculated that local opposition to land acquisition and environmental impact assessments may have influenced the government’s choice to pull back the policy. Others believe the shift reflects fiscal caution amid economic constraints.

For now, the future of Assam’s clean energy transition remains uncertain. Industry voices are urging the government to clarify its long-term strategy and possibly introduce a revised, more balanced policy. Without such reassurance, the state risks losing not only investor trust but also its opportunity to lead the Northeast into a sustainable energy era.

As India accelerates its push toward a low-carbon economy, Assam’s policy U-turn serves as a reminder that green transitions demand not only vision but also persistence, coordination, and political will.