India Unveils First-Ever National Geothermal Policy to Harness Earth’s Heat for Clean Energy
The Ministry of New and Renewable Energy (MNRE) has unveiled India’s first National Policy on Geothermal Energy, positioning the untapped resource as a round-the-clock renewable solution to support the nation’s 2070 net-zero goal.
September 16, 2025. By Mrinmoy Dey
India, endowed with distinctive geological formations, has long been identified as a hotspot for geothermal resources, yet development in the sector has lagged behind solar, wind, and hydropower. Since the 1970s, the Geological Survey of India (GSI) has identified 381 hot springs and 10 geothermal provinces, including Ladakh, Himachal Pradesh, Uttarakhand, Chhattisgarh, Gujarat, Jharkhand, and the Andaman & Nicobar Islands.
Temperatures in some Himalayan sites exceed 200°C, making them suitable for electricity generation, while medium- to low-enthalpy resources can be used for heating, cooling, agriculture, aquaculture, and even tourism.
The policy highlights opportunities for geo-tourism, greenhouse heating, food drying, aquaculture, and cold storage, alongside baseload electricity generation. Significantly, it encourages the oil and gas industry to repurpose abandoned wells for geothermal energy production, leveraging existing drilling expertise and infrastructure.
The MNRE has articulated a bold vision: “to establish geothermal energy as one of the major pillars of India’s renewable energy landscape, contributing to climate commitments, energy security, and the 2070 Net Zero Goal.”
Key goals include advancing research in geothermal exploration, drilling, and reservoir management; promoting direct-use technologies such as ground source heat pumps (GSHPs); and building a robust public-private ecosystem. The policy also calls for international collaboration to adopt global best practices and technologies.
Acknowledging the high upfront costs and risks of geothermal projects, the government has laid out a comprehensive support structure. Proposed measures include 100 percent FDI, concessional loans, sovereign green bonds, viability gap funding (VGF), tax holidays, GST exemptions, and accelerated depreciation. Developers will also benefit from waivers on open access charges, priority grid access, and eligibility under renewable purchase obligations and the carbon credit trading scheme.
Additionally, by-products such as lithium and silica extracted during geothermal operations may be monetised under the Mines and Minerals (Development and Regulation) Act, potentially improving project economics.
States and Union Territories will play a pivotal role in allocating geothermal blocks for exploration and development. Exploration permits will be granted for up to five years, extendable in special circumstances, while development rights may run for 30 years with provisions for renewal. The policy also emphasises single-window clearances, concessional land leasing, and community consultations, particularly in tribal and remote areas.
To drive adoption, MNRE plans to establish Centres of Excellence (CoE) in Geothermal Energy for technical support, capacity building, and R&D. Pilot projects will be rolled out under the Renewable Energy Research and Technology Development Programme, while soft loans from IREDA and other institutions will aid developers. Periodic progress reports and standard operating procedures (SOPs) will ensure accountability and transparency.
International cooperation is also on the agenda, with India seeking partnerships with global geothermal leaders such as the United States, Indonesia, and the Philippines, who currently dominate global installed capacity.
Geothermal energy, with its unique advantage of providing 24/7 baseload power, offers a complement to intermittent solar and wind. Its applications in industries, agriculture, and households could transform energy access in remote and off-grid areas while cutting greenhouse gas emissions.
please contact: contact@energetica-india.net.
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