Uttarakhand approves geothermal energy policy to tap Himalayan hot springs

The Uttarakhand cabinet has approved the Uttarakhand Geo-Thermal Energy Policy 2025 to promote scientific research and development of geothermal energy resources in the state. 

The decision was made at a cabinet meeting chaired by Chief Minister Pushkar Singh Dhami on July 9, 2025, according to Hindustan Times. The policy aims to utilise geothermal sites for power generation, heating and cooling, water purification, and community development. 

The energy department will lead the implementation in partnership with the Uttarakhand Renewable Energy Development Agency (UREDA) and Uttarakhand Jal Vidyut Nigam Limited (UJVNL). All geothermal projects in the state will fall under the purview of this new policy.

Geothermal project sites will be allocated to eligible central or state public sector entities or private developers. These allocations may be done through competitive bidding or other mechanisms defined by the state. Each project will be awarded for up to 30 years from the date it is commissioned.

If central government financial support is not available, the Uttarakhand government may step in to fund the first two geothermal projects. According to the policy, developers can receive up to 50 per cent financial assistance, capped at Rs 30 million, to prepare detailed project reports or assess existing geothermal installations.

Land-related permissions will follow standard procedures. For private land, approvals will align with revenue department norms. In case of forest land or other reserved areas, leases will be granted under the state’s proposed lease policy, which will be subject to government or forest department clearance.

Hot springs in the Himalayan region are formed when underground water gets heated by geothermal activity and rises to the surface through thermal vents. These geothermal points are typically found along the Main Central Thrust, a fault line created by the collision of the Indian and Eurasian tectonic plates. Experts consider these zones rich in renewable heat energy.

Earlier this year, on January 17, 2025, the Uttarakhand government signed a Memorandum of Understanding (MoU) with Icelandic firm Verkis Consulting Engineers to explore geothermal energy. The agreement was signed in Dehradun in the presence of Chief Minister Dhami and Iceland’s Ambassador to India, Mr. Benedikt Hoeskudlsson.

The cabinet meeting also saw the approval of several related policy measures. These included the Uttarakhand State Mineral Exploration Trust Rules, 2025 and updates to the District Mineral Foundation Trust Rules, originally framed in 2017. The new rules aim to promote the formation of state and district-level trusts for mineral development. Additionally, seven companies empanelled by the Ministry of Electronics and Information Technology were approved for IT procurement in the state.