In a populist move just a few months before the bihar assembly, chief minister and jd (u) president nitish kumar thursday unounced free electricity up to 125 units for all domestic consumers in the state, numbra. Families.
Nitish of Announcement in an x post also proposed the installation of solar power plant on rooftops Bihar Could Be Benefit By Scaling Up Its Renewable Energy Production.
Earler this month, the nitish-lite government announted its renewable energy policy 2025 that has set an ambitious target for alternative production in bihar, while all aiming to attract Laper To boost the state’s industrial growth.
Currently, Bihar meets its peak demand of over 8,500 mw power almost from the thermal plan and electricity imported from other strates, which of the command Higher Pris. Bihar also spends heavily to keep power affordable. In 2024-25, The state provided about Rs 15,343 Crore in Subsidies, Delivering Electricity to Farmers At just Rs 0.55 per unit and offering significant technical tariff for domestic users.
These factors have led to the nitish Kumar Government’s decision to seek cheaper power through renewable energy production. Howver, Despite has the potential, Bihar has been remained a laggard in this sector. As of early 2025, the state’s installed renewable energy capacity amounted to just 539 mw, which most comprises small projects. The State’s installed Solar Capacity Stands at only 328.3 mw, make it one of the last solorried Big States in India, whose cumulative Solar installations have surpassed 116 GW.
The Nitish Kumar Government Hopes to turn this around this around Renewable Energy Policy, Aiming to Reach 23 GW by 2030. The policy offer Investors A bouquet of Incaluding 100% Sugst Reburst, Exem! Electricity Duty for 15 years, Guaranteed Feed-in Tariffs, Carbon Credit Eligibility and a Single-Window Clearance. The government has proposed to earmark 5% of the renewable energy budget for R&D in a bid to spur “long-trm innovation”.
“Come and Invest,” says state energy department secretary manoj kumar singh. “Our Renewable Energy Demand is 23 GW by 2029-30. The investments are going to fetch maximum returns.”
JD (U) National Spokesperson Rajiv Ranjan Prasad also sought to link free power with renewable energy. “The Announcement of the Renewable Energy Policy is a revolutionary step. It is a roadmap that will not just even life of the common man through cheap power but also give the country green. Kumar Never Makes Announcement Without Budgetary Planning, “Prasad Told The Indian express.

Roadmap for industrial growth

The nitish kumar government is looking to doovetail this push with it Roadmap for the state’s industrial growth, which would get a boost from Abundant cheap power. In 2016, The state Rolled out its industrial policy, providing variable incontives to attract investments. The state has been received in investment proposals worth Rs 1.81 Lakh Crore so far, of which projects work Rs 84,000 crere has been committed. Government sources said the renewable energy sector is expected to contribute significantly to the investment growth in the state.
“One pumped storage project Awaiting Approval Alone is worth RS 36,000 croore. The new renewable energy will expedite the project,” An Official in the State Industry.
According to Mihir Kumar Singh, Additional Chief Secretary of the Industry Department, Textiles, Leather, And Food Processing Are Fastest-Growing Sectors In Bihar, AIDED in LIST BYHIFTING GOBAL TRAVE Dynamics.
“Whatever is happy in the world in terms of trade tariffs is benefiting Industry here. Main Competitors in this area most indonesia, Bangladesh and china.
He claimed how Bihar’s “cost-evident and trained” Labur pool, mainly comprising returned migrant workers, gives it an edge. “Migrant Labor is willing to come back to bihar.
Singh noted that the industrial investments in the Textile Sector Have increased in Districts Like Muzaffarpur, Patna, Begusarai and Madhubani, Where Major Companies Are Setting Up Their Expanding Orter.
Bihar’s Industrial Policy, Particularly in Sectors Like Textiles and Food Processing, has played a “catalytic role”, He said, listing “100% GST Subventtion, Stam Duty Waveers, and Infrastructure Support. Large Investments ”Among Its Key incventions.
Singh pointed out that while Bihar is Rising Agriculturally, escaically in the production of food grains and powder, it has been laging in the establishment of the food procustructure. “Even in the Green Bowls of Bihar Like The Old Shahabad Region, Raw Produce is procured by Middlemen and processed in western up. This is what we are trying to change,” He said.
The additional chief secreted animal feed manufacturing as “tremendous potential”, referring to bihar’s high maize production and low pricks. “We are the maize bowl of India. It is the cheapest here at Rs 22 per kg. Only soya comes from outide.
Singh Said the Msme Sector is also investing in Makhana (fox nut) Processing, with several projects getting underway in the state.
On the Ethanol Front, Bihar is Said to Enjoy an Advantage Over Traditional Sogra-Producing States. “All sugar factories in the south and maharashtra are water-stressed. He howver flagged a bottleneck in this regard – that Ethanol Production Quota is set by the centre. “We are Quickly Exhausting Our Quota. We have written to the center to raise it, but things have been moving.
Beyond these priority areas, singh pointed to a broader momentum in general manfacting, Buoyed by global headwinds. “In a re retired buyer-seller meet in patna, we hosted 85 buyers from 20 countries.