India Launches First National Geothermal Energy Policy 2025

On September 15, 2025, the Ministry of New and Renewable Energy notified its first national policy on geothermal energy, under which 381 hot springs with a capacity of 10,600 megawatts have been identified across the country.

• On September 15, 2025, the Ministry of New and Renewable Energy of the Government of India notified its first national policy on geothermal energy, which laid out a framework for exploration, resource assessment, and project development across the country.
• According to the Ministry of New and Renewable Energy (MNRE), the Geological Survey of India (GSI) has so far identified 381 hot springs spread across 10 geothermal areas including Ladakh, Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Sikkim, Jharkhand, Chhattisgarh, Gujarat, Odisha, Maharashtra, and Telangana, with surface temperatures ranging from 35°C to 89°C.
• The Ministry said that geothermal energy provides a baseload renewable option with capacity utilization factors of more than 80 percent, making it suitable for direct-use applications such as power generation as well as heating and cooling, agriculture, aquaculture, industrial processes, and geo-tourism.
• MNRE said that 100 percent foreign direct investment (FDI) is allowed in the geothermal energy sector, with the main focus on indigenous technology development to reduce dependence on imports.
• This policy has been designed to make geothermal energy an important part of the country’s renewable energy mix and to achieve India’s ambitious goal of net-zero emissions by 2070.

Main features of the policy

• Supports high-enthalpy (power) and low/medium enthalpy (heating, cooling, agriculture, industry) uses.
• Includes resource assessment for end use including hybrid systems, storage, and reuse of oil/gas wells for geothermal energy.
• Provides single-window clearance through state nodal agencies.
• Proposes tax/GST exemptions, tax holidays, accelerated depreciation, property tax relief.
• Exploration leases: 3–5 years; development leases: up to 30+ years with concessional land.
• Establishes a centralized geothermal data repository with mandatory data submission.

About geothermal energy

• India has a capacity of 10,600 megawatts of electricity generation as assessed by the Geological Survey of India (GSI), which is enough to power 10 million homes.
• Major projects include a 20-kilowatt pilot plant at Manuguru, Telangana, and a 1-megawatt project by ONGC in Puga Valley, Ladakh.
• India has signed agreements for geothermal energy cooperation with countries like Iceland (2007), Saudi Arabia (2019), and with the USA (2023) under the Renewable Energy Technology Action Platform (RETAP).
• Geothermal energy is heat derived from the Earth (Geo = Earth, Thermal = Heat).
• It is obtained from natural or man-made reservoirs of hot water/steam at various depths. By drilling wells, this heat can be used for electricity generation, heating, cooling, and other applications.