The Andhra Pradesh government has introduced its Integrated Clean Energy (ICE) policy, which outlines a comprehensive plan to boost clean energy development with an ambitious investment target of ₹10 lakh crore by 2047. This policy, unveiled on Thursday, includes a range of incentives such as concessional stamp duties, goods and services tax (GST) relief, and capital subsidies to promote the growth of renewable energy in the state.
Key provisions of the policy include a 25% capital subsidy for electrolyser stacks and integrated green hydrogen (GH) plant machinery, along with a 20% subsidy for desalination plants. These measures are aimed at promoting green hydrogen production, a key component of Andhra Pradesh’s clean energy strategy. Additionally, the state aims to generate 78.50 gigawatt peak (GWp) of solar energy, 35 gigawatts (GW) of wind energy, and 25-30 GW of clean technology manufacturing under the policy.
For solar and wind energy generation projects, as well as electrolyser manufacturing, the government has proposed a 25% capital subsidy. Battery manufacturing projects will receive a 20% capital subsidy. Investors in green hydrogen and battery energy storage systems (BESS) will benefit from a five-year reimbursement of the state’s share of net state goods and services tax (SGST), providing further incentive for clean energy development. Additionally, battery manufacturing projects will receive a 100% reimbursement of stamp duty on land purchased or leased.
The policy also facilitates access to land for clean energy projects. Developers of wind, solar, and hybrid power projects can lease both government and private land for ₹31,000 per acre annually. Those engaged in pumped storage and small hydropower projects can purchase government land at a minimum rate of ₹5 lakh per acre, with stamp duty exemptions for land used in pumped storage projects.
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Chief Minister Nara Chandrababu Naidu emphasised that the policy is designed to tap into the state’s renewable energy potential, drive progress toward net-zero targets, and reduce energy costs through clean energy initiatives. The ICE policy signals Andhra Pradesh’s commitment to becoming a leader in sustainable energy production.
