Source: News on Air
Context: MNRE launched the National Policy on Geothermal Energy (2025) to accelerate exploration and deployment of geothermal energy resources.
About National Policy on Geothermal Energy 2025:
What It Is?
- A comprehensive framework issued by the Ministry of New & Renewable Energy (MNRE) to harness India’s 10 GW geothermal potential, integrate it with renewable energy goals, and build a public-private ecosystem for sustainable development.
Launched By: Ministry of New and Renewable Energy (MNRE)
Objectives:
- Research & Innovation: Improve geothermal exploration, drilling, reservoir management, cost-effective power generation, and direct-use tech.
- Collaboration: Work with ministries, research institutes, global geothermal agencies, and oil/gas sector.
- Decarbonization: Promote geothermal for space heating/cooling, industry, agriculture, and tourism.
- Infrastructure Utilization: Repurpose abandoned oil & gas wells for geothermal production.
Key Features:
- Vision & Goals:
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- Make geothermal a major pillar of India’s renewable energy mix.
- Enhance energy security and support Net Zero by 2070.
- Geothermal Potential:
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- 381 hot springs identified by GSI; 10 geothermal provinces including Himalayas, Cambay Graben, Godavari Basin, Aravalli.
- Puga (Ladakh), Manikaran (HP), Tattapani (Chhattisgarh) highlighted as high-potential zones.
- Scope of the Policy:
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- Covers electricity generation, district heating/cooling, cold storage, greenhouse heating, aquaculture, tourism, desalination.
- Encourages hybrid systems (geothermal + solar) and mineral extraction (lithium, boron) for economic viability.
- Development Model:
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- 100% FDI permitted in geothermal sector.
- Promotes risk-sharing mechanisms, joint ventures with oil & gas companies, and single-window clearance by states.
- Fiscal incentives: GST & import duty exemptions, tax holidays, accelerated depreciation, viability gap funding.
Implementation:
- MNRE as nodal agency with inter-ministerial coordination.
- Establishment of Geothermal Centres of Excellence for R&D and pilot projects.
- Periodic progress reports and SOP-based execution for faster rollout.









