India notified its first National Policy on Geothermal Energy (NPGE), 2025 in September 2025, with the Ministry of New and Renewable Energy (MNRE) as the nodal ministry. The policy aims to make geothermal a reliable clean baseload option to support the Net Zero 2070 target and strengthen energy security by diversifying the renewable mix.
Objectives and Scope
- Establish geothermal as a major pillar of India’s renewable energy strategy and contribute to the 2070 Net Zero commitment and long‑term energy security
- Facilitate exploration, development and utilization of geothermal resources for both power generation and direct-use applications such as space heating/cooling, agriculture, aquaculture and industrial processes.
- Cover the full value chain: resource assessment, power production systems, direct use, and Ground Source Heat Pumps (GSHP), along with emerging technologies like Enhanced/Advanced Geothermal Systems and geothermal storage
Institutional Framework and Resource Base
- MNRE is the central nodal agency for policy implementation, coordination with other ministries, and international collaboration; it will run R&D and pilot programmes under its Renewable Energy Research and Technology Development scheme.
- The policy builds on identification of several hundred geothermal sites and hot springs across multiple provinces (often cited as 350–380 locations), recognizing distinct high‑enthalpy (power) and low/medium‑enthalpy (direct use) resource types.
Key Policy Instruments
- Financial: access to concessional long‑term loans, Sovereign Green Bonds and Viability Gap Funding, with additional central support for projects in the North‑Eastern Region and special category states
- Fiscal: potential GST/import duty reliefs and tax‑related incentives to improve project viability and attract private investment, alongside risk‑sharing mechanisms for drilling and exploration
- Regulatory and facilitative: streamlined approvals, permission for resource assessment surveys, revenue‑sharing and milestone‑based payment models, and preference for indigenous technologies and domestic manufacturing.
Technology and Innovation Focus
- Promotion of advanced exploration and drilling techniques, reservoir management, and cost‑effective generation specific to India’s geological conditions.
- Support for converting abandoned oil and gas wells into geothermal projects in coordination with the petroleum ministry and oil companies, reducing exploration risk and leveraging existing subsurface assets.
Environmental and Strategic Significance
- Emphasizes safe, non‑polluting use of geothermal fluids with reinjection to protect groundwater and surface ecosystems.
- Positions geothermal as a source of round‑the‑clock renewable baseload power and a tool for industrial and building‑sector decarbonisation, complementing variable solar and wind to improve grid stability