MNRE releases national policy on geothermal energy

The Ministry of New and Renewable Energy (MNRE) on 15 September 2025 issued the National Policy on Geothermal Energy to guide exploration, development, and deployment of geothermal resources in the country.

The vision is to establish geothermal energy as a central part of India’s renewable portfolio. The policy outlines goals to expand research, improve exploration methods, reduce costs, and adopt direct-use technologies such as ground source heat pumps. It also seeks to build partnerships with international bodies and national research institutions. The policy will support India’s net-zero commitment by 2070 and strengthen long-term energy security.

Applications identified include electricity production through various geothermal plant technologies, direct-use for heating and cooling, greenhouses, aquaculture, food drying, and tourism. The use of geothermal resources for cold storage and mineral by-products such as lithium and silica is included under the Mines and Minerals (Development and Regulation) Act.

The Geological Survey of India has mapped 381 hot springs across ten geothermal provinces. Sites highlighted include Puga in Ladakh, Manikaran in Himachal Pradesh, Tapoban in Uttarakhand, Sohna in Haryana, Bakreshwar in West Bengal, Dholera in Gujarat, and Tattapani in Chhattisgarh.

The policy sets a development model covering exploration, drilling, feasibility studies, and plant construction. It permits 100 percent foreign direct investment and provides fiscal measures such as duty and GST exemptions, tax holidays, accelerated depreciation, and concessional land. Financing options include concessional loans, viability gap funding, sovereign green bonds, and donor contributions, with government support for risk mitigation.

States and Union Territories are expected to identify geothermal blocks, grant exploration permits, and offer land at concessional rates. Single-window systems will be used for clearances. The policy requires stakeholder consultations, especially in tribal and remote regions.

For implementation, MNRE will act as the nodal agency. The policy provides for pilot projects, Centres of Excellence, international cooperation, and soft loans through IREDA. Standard operating procedures and periodic reports will track progress.