How state support fits
States add duty waivers, land and capital subsidies to central support. The table below mixes two kinds of policy. The Rajasthan and Uttar Pradesh rows come from dedicated clean-energy policies and apply to generation, hydrogen and ammonia projects. The Tamil Nadu, Maharashtra and Karnataka rows are general industrial policies and are shown for equipment manufacturing (modules, cells, batteries, turbines). Incentives are ceilings set by each policy and depend on eligibility, category and approvals.
State table
| State | Policy and validity | Headline incentives |
|---|---|---|
| Rajasthan | Rajasthan Integrated Clean Energy Policy 2024; target of 125 GW of renewable power by 2029-30 | For RE units: 100% electricity duty exemption for 7 years; 75% stamp duty exemption plus 25% reimbursement; government land allotted through the state nodal agency (RREC). |
| Uttar Pradesh | UP Green Hydrogen Policy 2024; valid for five years | One of three incentive options. Capital subsidy option: 10% to 30% of eligible capital investment (ECI) by region and project size, paid in annual instalments (limits ₹5 crore to ₹150 crore a year); the first five Super Mega and Ultra Mega green hydrogen or ammonia projects outside Meerut Division can get 35% or 40% of ECI. |
| Tamil Nadu | Tamil Nadu Industrial Policy 2021 (equipment manufacturing) | Option of 100% SGST reimbursement for 15 years on products made and sold in the state; SIPCOT land at a 10% concession (A and B districts) or 50% (C districts); electricity tax exemption for 5 years. |
| Maharashtra | Industry, Investment and Services Policy 2025, five years from notification; thrust sectors include solar panel, module and cell, and lithium battery and cell manufacturing | Investment Promotion Subsidy on 100% of gross SGST on first sales within the state for eligible MSMEs and Special LSI units; six Ultra Mega Industrial Parks of at least 5,000 acres each. |
| Karnataka | Karnataka Industrial Policy 2025-30: five years from 8 February 2025 (equipment manufacturing) | Large, mega and ultra-mega projects: capital subsidy of 10% to 25% of fixed capital investment by zone, or a production-linked incentive of 1.0% to 2.5% of net sales turnover for 7 years; 100% stamp duty exemption for eligible projects. |
State notes
Rajasthan
The Integrated Clean Energy Policy 2024 sets a target of 125 GW of renewable power by 2029-30. For renewable energy units it offers a 100% electricity duty exemption for seven years and a 75% stamp duty exemption with a further 25% reimbursed, and the state nodal agency, RREC, allots government land to developers. Registration and in-principle clearance with RREC is the step through which these exemptions are claimed (see regulators). Fatehgarh, the site of the 300 MW solar project Sembcorp acquired in December 2025, is in Rajasthan.
Uttar Pradesh
The Green Hydrogen Policy 2024 runs for five years and offers one of three incentive options; the brief details the capital subsidy option. That option pays 10% to 30% of eligible capital investment, graded by region and project size, in annual instalments subject to limits of ₹5 crore to ₹150 crore a year. The first five Super Mega and Ultra Mega green hydrogen or ammonia projects located outside Meerut Division qualify for 35% or 40% of ECI. The other two options are not described in the sources; ask the state for the policy text.
Tamil Nadu
The Industrial Policy 2021 row is for equipment manufacturing. It offers a choice of 100% SGST reimbursement for 15 years on products made and sold in the state, SIPCOT land at a 10% concession in A and B districts or 50% in C districts, and a five-year electricity tax exemption. Tamil Nadu is also one of the two states (with Gujarat) named for the first 1 GW of supported offshore wind, and one of the four states proposed for rare-earth corridors in Budget 2026-27.
Maharashtra
The Industry, Investment and Services Policy 2025 is valid for five years from notification and names solar panel, module and cell manufacturing and lithium battery and cell manufacturing among its thrust sectors. Eligible MSMEs and Special LSI units receive an Investment Promotion Subsidy equal to 100% of gross SGST on first sales within the state. The policy also provides for six Ultra Mega Industrial Parks of at least 5,000 acres each.
Karnataka
The Industrial Policy 2025-30 runs for five years from 8 February 2025. Large, mega and ultra-mega projects choose between a capital subsidy of 10% to 25% of fixed capital investment, graded by zone, and a production-linked incentive of 1.0% to 2.5% of net sales turnover for seven years. Eligible projects also get a 100% stamp duty exemption. The brief draws these terms from a Grant Thornton Bharat summary, a secondary source.
Other states and sites named in the brief
- Gujarat: Khavda, the site of the 1,150 MW TotalEnergies–Adani Green Energy solar joint venture, and one of the two offshore wind sites (500 MW each off Gujarat and Tamil Nadu). No Gujarat state incentive terms are given in the sources.
- Odisha, Kerala, Andhra Pradesh and Tamil Nadu: proposed rare-earth corridors for mining, processing, research and manufacturing (Budget 2026-27).
- Solar parks and ultra mega solar power projects: central scheme sites where land and transmission are provided; about 3,084 MW was commissioned in solar parks in 2025.
Check: Each figure above is a policy ceiling. Confirm the current category thresholds, zone classifications and claim procedures with the state nodal agency or single-window portal before modelling a subsidy.
What to check next
- Decide whether your project is a generation or hydrogen asset (Rajasthan, Uttar Pradesh rows) or an equipment plant (Tamil Nadu, Maharashtra, Karnataka rows); the policy type determines the incentive menu.
- For Uttar Pradesh, obtain the full policy to compare the capital subsidy option with the two options the brief does not describe.
- Confirm district or zone classification (Tamil Nadu A/B/C districts; Karnataka zones) since it sets the land concession or subsidy percentage.
- Check validity dates: Maharashtra’s policy runs five years from notification and Karnataka’s from 8 February 2025.
- Cross-check the state table on the cross-sector state incentives page for policies that apply beyond energy.