Bihar Cabinet gives nod to Bihar Green Hydrogen Policy, 2026

Infrastructure & Energy · 1 October 2026 · Based on The Hindu (original report)

2-minute summary

The Bihar Cabinet has approved the 'Bihar Green Hydrogen Policy, 2026' to promote renewable energy, reduce dependence on natural gas imports, and lower carbon emissions. Aligned with the National Green Hydrogen Mission, the policy targets the production of 0.1 million metric tonnes (1,00,000 tonnes) of green hydrogen annually by 2031. It aims to establish 1 GW of electrolyser capacity and 2.5 GW of renewable energy capacity, attracting ₹16,000 crore in private investment and creating 12,000 jobs. The Bihar Renewable Energy Development Agency (BREDA) will serve as the nodal agency. Additionally, the Cabinet approved the 'Mukhya Mantri Hemophilia Yojana' to provide the expensive drug Emicizumab to hemophilia patients, and eliminated VAT on Aviation Turbine Fuel (ATF) at regional connectivity airports.

Why it's in the news

The Bihar Cabinet approved the draft 'Bihar Green Hydrogen Policy, 2026' on September 30, 2026, to accelerate the state's transition to clean energy and attract green technology investments.

Facts to remember

• The Bihar Green Hydrogen Policy, 2026 targets the production of 0.1 million metric tonnes (1,00,000 tonnes) of green hydrogen per year by 2031.
• The policy aims to establish 1 GW of electrolyser capacity and approximately 2.5 GW of renewable energy capacity in Bihar.
• Bihar Renewable Energy Development Agency (BREDA) is the designated nodal agency for implementing the Green Hydrogen Policy.
• The policy expects to attract private investments worth approximately ₹16,000 crore and generate 12,000 direct and indirect jobs.
• The Central Government's National Green Hydrogen Mission was launched in 2023 with the goal of achieving energy independence by 2047.
• The Bihar Cabinet approved the 'Mukhya Mantri Hemophilia Yojana' to provide the drug Emicizumab to patients in the state.

Background and context

Green hydrogen is produced through the electrolysis of water using electricity generated from renewable energy sources, resulting in zero greenhouse gas emissions. In 2023, India launched the National Green Hydrogen Mission with an outlay of ₹19,744 crore to position the country as a global hub for production, usage, and export of green hydrogen. To localize these goals, several Indian states are formulating dedicated policies to attract investments in electrolyser manufacturing and green hydrogen derivatives (like green ammonia). Bihar, historically dependent on fossil-fuel-based power, is seeking to leverage its agricultural and industrial potential by transitioning to clean energy. This policy represents a significant step for an eastern state to build a green energy ecosystem, reduce industrial carbon footprints, and create high-tech manufacturing jobs.

Constitutional provisions

• Article 48A — Directive Principles of State Policy direct the State to protect and improve the environment and safeguard forests and wildlife.
• Seventh Schedule (List III - Entry 38) — Electricity is a Concurrent List subject, allowing both the Centre and States to formulate policies and regulations.

Committees and reports

• NITI Aayog Report: Harnessing Green Hydrogen — Highlighted the potential of green hydrogen to decarbonize India's industrial sectors and recommended state-level policy support to attract investments.

Government schemes

• National Green Hydrogen Mission — The overarching national mission aimed at making India a global hub for green hydrogen production and export.
• Mukhya Mantri Hemophilia Yojana — A state-level welfare scheme to provide free Emicizumab drug treatment to hemophilia patients.

International organisations

• International Renewable Energy Agency (IRENA) — An intergovernmental organisation that supports countries in their transition to a sustainable energy future and tracks global green hydrogen adoption.

Previous UPSC questions on this theme

• Prelims GS-1 2026 — Which of the following statements with regard to Green Hydrogen is/are correct ? 1. It is decarbonized hydrogen obtained from natural gas reforming combined with carbon capture and storage (CCS). 2. It is produced using electrolysis of water with electricity generated from renewable energy. 3. National Green Hydrogen Mission of India aims for abatement of nearly 50 MMT of annual greenhouse gas emissions by 2030. Select the answer using the code given below : (a) 1 only (b) 2 and 3 only (c) 2 only (d) 1, 2 and 3
• Prelims GS-1 2023 — With reference to green hydrogen, consider the following statements : 1. It can be used directly as a fuel for internal combustion. 2. It can be blended with natural gas and used as fuel for heat or power generation. 3. It can be used in the hydrogen fuel cell to run vehicles. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None

Mains practice: Sub-national climate action is critical to achieving India's Net Zero targets. In light of this statement, analyze the significance and implementation challenges of Bihar's Green Hydrogen Policy, 2026.

The Bihar Green Hydrogen Policy, 2026 represents a crucial step in sub-national climate action, aligning state-level industrial planning with India's National Green Hydrogen Mission (2023) and its global commitment to achieve Net Zero emissions by 2070.

**Significance of the Policy:**

• **Decarbonization of Hard-to-Abate Sectors:** By targeting 0.1 million metric tonnes of green hydrogen production by 2031, the policy facilitates the greening of fertilizer plants, refineries, and steel industries in the region.

• **Attracting Green Capital:** It aims to mobilize ₹16,000 crore in private investments, signaling that historically non-industrial states can become hubs for clean energy manufacturing.

• **Employment Generation:** The policy projects the creation of 12,000 direct and indirect jobs, fostering local skill development in high-tech sectors like electrolyser manufacturing.

• **Energy Security:** Reducing reliance on imported natural gas and fossil fuels enhances the state's fiscal health and energy self-reliance.

**Key Implementation Challenges:**

• **Renewable Energy Deficit:** Green hydrogen production requires continuous, low-cost renewable power. Bihar currently relies heavily on thermal power, making the target of 2.5 GW of renewable energy capacity highly ambitious.

• **Water Intensity:** Electrolysis requires vast quantities of demineralized water. Managing water resources without disrupting agricultural needs will be a delicate balancing act.

• **High Capital Costs:** The technology for electrolysers (1 GW target) remains expensive, and establishing a viable domestic supply chain requires sustained financial incentives.

• **Infrastructure Constraints:** Transporting and storing hydrogen requires specialized pipelines and cryogenic storage, which are currently lacking in the state.

**Conclusion:**

While Bihar's Green Hydrogen Policy, 2026 is a progressive blueprint for cooperative federalism in climate action, its success will depend on building robust renewable power transmission infrastructure, securing water resources, and ensuring seamless coordination with central funding mechanisms.

Prelims practice questions

Q1. With reference to the Bihar Green Hydrogen Policy, 2026, consider the following statements: 1. It aims to produce 0.1 million metric tonnes of green hydrogen per year by 2031. 2. The Bihar Renewable Energy Development Agency (BREDA) has been designated as the nodal agency for its implementation. Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Answer: C. Both statements are correct. The policy sets a target of 0.1 million metric tonnes (1,00,000 tonnes) of green hydrogen per year by 2031, and BREDA is the designated nodal agency.

Q2. Which of the following is the primary source of energy used in the production of 'Green Hydrogen'?

1. Coal gasification with carbon storage
2. Renewable Energy sources via electrolysis of water
3. Nuclear energy-driven high-temperature steam electrolysis
4. Natural Gas reforming combined with Carbon Capture

Answer: B. Green hydrogen is defined by its production process, which utilizes renewable energy (like solar or wind) to power the electrolysis of water, resulting in zero carbon emissions.

Q3. With reference to the 'Mukhya Mantri Hemophilia Yojana' approved by the Bihar Cabinet, consider the following statements: 1. The scheme is implemented under the Mukhya Mantri Chikitsa Sahayta Kosh. 2. It aims to provide the drug Emicizumab to facilitate better treatment for hemophilia patients. Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Answer: C. Both statements are correct. The Bihar Cabinet approved the scheme under the Mukhya Mantri Chikitsa Sahayta Kosh to provide the drug Emicizumab for hemophilia patients to reduce uncontrolled bleeding.

Revision flashcards

• What is the annual green hydrogen production target under the Bihar Green Hydrogen Policy, 2026? 0.1 million metric tonnes (or 1,00,000 tonnes) per year by 2031.
• Which agency is the nodal agency for implementing the Bihar Green Hydrogen Policy, 2026? Bihar Renewable Energy Development Agency (BREDA).
• What are the electrolyser and renewable energy capacity targets under the Bihar Green Hydrogen Policy, 2026? 1 GW of electrolyser capacity and approximately 2.5 GW of renewable energy capacity.
• What is the target year for achieving energy independence under the National Green Hydrogen Mission? 2047 (by meeting 50% of India's electricity demand through renewable energy).
• Which expensive drug is provided under the newly approved Mukhya Mantri Hemophilia Yojana in Bihar? Emicizumab (used to reduce uncontrolled bleeding and complications in hemophilia patients).