Assam Puts Green Hydrogen Policy on Hold, Investors Reassess Plans

Assam has paused its flagship green hydrogen policy, causing uncertainty among investors and developers who had shown early interest in the state’s clean energy ambitions. Government and industry sources confirmed the move, which comes just months after the policy’s launch in February.

The northeastern state had sought to position itself as a green hydrogen hub by offering financial incentives and power waivers. However, recent reductions in transmission subsidies and increases in bank guarantees under Assam’s solar policy signaled a shift in approach.

Companies including NTPC Green, Larsen and Toubro, Sembcorp, and Ocior had expressed interest in green hydrogen projects in the state. Some are now reassessing investment strategies due to rising power costs and a lack of renewable energy sources within Assam, which could raise operational expenses by up to 15 percent, according to industry estimates. Experts note that policy consistency is crucial for investor confidence in capital-intensive green hydrogen ventures.