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Home Home - Hydrogen
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Assam’s Pause on Green Hydrogen Policy Raises Investor Concerns Amid Shifting Incentives

Anela DoksoBy Anela Dokso14/07/20253 Mins Read
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India’s northeastern state of Assam has unexpectedly put its green hydrogen policy on hold, creating uncertainty for energy developers and investors who had begun assessing project feasibility under the state’s previously announced incentives.

The move, confirmed by government and industry sources, highlights growing volatility in India’s sub-national clean energy frameworks—particularly for nascent technologies like green hydrogen.

Assam, the largest state in the northeast, has positioned itself as a prospective hub for green hydrogen production to attract investment into a region historically underrepresented in renewable energy development. When its initial hydrogen policy was launched in February, it offered financial incentives, transmission waivers, and land access to lure developers. But by June, the state had already reduced key incentives for solar development—raising concerns that hydrogen-specific benefits could also face revision.

The pause in policy implementation has directly impacted project evaluations by firms such as NTPC Green, Larsen & Toubro, Singapore-listed Sembcorp, and Abu Dhabi-based Ocior. These companies had expressed early interest in green hydrogen ventures in Assam, but now face the prospect of recalculating capital allocation, expected returns, and operational timelines.

An official familiar with the matter stated that a revised draft policy is expected by the end of this month, although no details were provided on the rationale behind the delay or the changes being considered.

Compounding the issue is Assam’s structural challenge in renewable power generation. Unlike states such as Gujarat or Tamil Nadu, Assam lacks abundant solar and wind resources, meaning green hydrogen production would rely heavily on importing renewable electricity from neighboring states. This inter-state dependence introduces additional costs in transmission and storage, which were initially expected to be offset by state-provided subsidies.

However, those incentives are now under review. A senior official from a major Indian renewables firm stated that power costs in Assam could be 10–15% higher than in states with more competitive transmission and banking policies. “Unless such costs are reduced, Assam will fall behind other states with more competitive policies,” the official warned.

Transmission subsidies and bank guarantee terms—critical for capital-intensive hydrogen projects—were also modified in Assam’s revised solar policy earlier this year. These changes have fed investor concern that similar revisions are coming for hydrogen, potentially making early-stage business models unviable.

The timing is particularly sensitive. India’s National Green Hydrogen Mission aims to produce 5 million metric tonnes of green hydrogen annually by 2030. States like Gujarat, Karnataka, and Andhra Pradesh have already rolled out aggressive policy frameworks and are competing to attract anchor tenants for industrial-scale projects. Assam’s policy backtracking, even if temporary, risks ceding first-mover advantage.

For now, developers are awaiting Assam’s revised policy before committing to feasibility studies or land acquisition. But the situation illustrates a broader trend in India’s clean energy transition: while national goals are ambitious, sub-national policy coherence remains a significant variable.


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