India Launches First Geothermal Energy Policy

18 Sep 2025 CW Team

Geothermal energy, which harnesses the Earth’s natural heat, offers 24/7 electricity, grid stability, and energy access for remote areas. The policy places emphasis on research and development, particularly improving exploration and drilling methods, while also encouraging applications like ground source heat pumps for buildings and agriculture. Collaboration with global institutions is expected to bring international best practices to India.

The Geological Survey of India has identified 381 hot springs across the country, with notable geothermal provinces in Ladakh, Himachal Pradesh, and Chhattisgarh. While most sites suit direct applications such as heating, aquaculture, and food drying, high-enthalpy resources in specific regions could enable electricity generation.

Challenges such as high upfront costs and exploration risks will be addressed through concessional loans, viability gap funding, and grants. Incentives like tax holidays and exemptions on import duty and GST for geothermal equipment are also proposed. To ease project development, MNRE will create a single-window clearance system, while states will appoint nodal agencies to facilitate approvals.

The policy further proposes repurposing abandoned oil and gas wells for geothermal use, reducing costs and leveraging existing infrastructure. It also allows for extracting valuable minerals like silica and lithium from geothermal resources. MNRE will act as the nodal agency, setting up Centres of Excellence for technical support, training, and capacity building.

With this initiative, India aims to complement its progress in solar and wind energy by tapping geothermal as a reliable, clean, and constant source of power.

India has unveiled its first National Policy on Geothermal Energy, marking a major step in its clean energy journey. Announced by the Ministry of New and Renewable Energy (MNRE), the policy seeks to integrate geothermal energy into the country’s renewable energy portfolio, supporting its goal of net-zero emissions by 2070.Geothermal energy, which harnesses the Earth’s natural heat, offers 24/7 electricity, grid stability, and energy access for remote areas. The policy places emphasis on research and development, particularly improving exploration and drilling methods, while also encouraging applications like ground source heat pumps for buildings and agriculture. Collaboration with global institutions is expected to bring international best practices to India.The Geological Survey of India has identified 381 hot springs across the country, with notable geothermal provinces in Ladakh, Himachal Pradesh, and Chhattisgarh. While most sites suit direct applications such as heating, aquaculture, and food drying, high-enthalpy resources in specific regions could enable electricity generation.Challenges such as high upfront costs and exploration risks will be addressed through concessional loans, viability gap funding, and grants. Incentives like tax holidays and exemptions on import duty and GST for geothermal equipment are also proposed. To ease project development, MNRE will create a single-window clearance system, while states will appoint nodal agencies to facilitate approvals.The policy further proposes repurposing abandoned oil and gas wells for geothermal use, reducing costs and leveraging existing infrastructure. It also allows for extracting valuable minerals like silica and lithium from geothermal resources. MNRE will act as the nodal agency, setting up Centres of Excellence for technical support, training, and capacity building.With this initiative, India aims to complement its progress in solar and wind energy by tapping geothermal as a reliable, clean, and constant source of power.

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