Andhra Pradesh Government Unveils Clean Energy Policy with Major Incentives

The Andhra Pradesh government has introduced a new Integrated Clean Energy (ICE) policy, offering various incentives like lower stamp duty, GST relief, and capital subsidies to boost investments of up to ₹10 lakh crore by 2047.

Released on Thursday, the policy includes a 25% capital subsidy for machinery used in electrolyser stacks and integrated green hydrogen plants, along with a 20% subsidy for desalination plants.

The state aims to generate 78.5 GW of solar energy, 35 GW of wind energy, and establish 25-30 GW of clean technology manufacturing through this initiative.

Key incentives also include a 25% capital subsidy for solar and wind energy projects, as well as for electrolyser manufacturing, and a 20% subsidy for battery manufacturing.

For those investing in green hydrogen and its derivatives, the government will reimburse its share of the net state goods and services tax (SGST) for five years. The same benefit applies to investors setting up battery energy storage systems (BESS).

Additionally, the policy offers a full reimbursement of stamp duty on land purchased or leased for battery manufacturing. According to the policy document, developers of wind, solar, and hybrid power projects can lease government and private land at a rate of ₹31,000 per acre per year. Those developing pumped storage or mini/small hydropower projects can buy government land for at least ₹5 lakh per acre, with stamp duty waived for all land acquired for pumped storage projects.

Chief Minister Nara Chandrababu Naidu emphasized that this policy aims to tap into the state’s renewable energy potential, helping to achieve net-zero targets while reducing energy costs.