Government of India notifies National Policy on Geothermal Energy

On September 15, 2025, the Government of India notified the National Policy on Geothermal Energy (Policy), in line with its commitment to the 2070 Net-Zero emissions goal. The policy is designed for the exploration and development of the country’s untapped geothermal resources. The policy envisions establishing a sustainable, secure, and accountable geothermal energy sector. It delineates primary objectives such as enhancing research and development capacities, fostering partnerships with both international and national research organizations, and cultivating a resilient public-private framework to support long-term growth.

1. Objectives and Application

India has unique geological formations, with 381 hot springs identified by the Geological Survey of India (GSI). The policy seeks to identify and map geothermal spots across the Himalayan region, Deccan Traps, Cambay Grabens, and other promising zones.

The policy is designed to advance research and development in hybrid geothermal-solar plants, the retrofitting of decommissioned oil wells, and the deployment of enhanced and advanced geothermal systems.

In addition, the policy outlines the establishment of a comprehensive geothermal data repository through collaboration with the Ministry of Mines, Directorate General of Hydrocarbons, National Data Repository, and other relevant agencies.

2. Key Policy Features

• • • Resource Assessment and Mapping: The policy establishes a framework for geothermal resource assessment through geological, geochemical and geophysical surveys and exploratory drilling aligned with international norms. The Ministry will facilitate creation of a geothermal resource data repository through inter-governmental collaboration with entities like GSI, and Council of Scientific & Industrial Research-National Geophysical Research Institute (CSIR-NGRI), with operators required to submit all acquired geothermal data to the designated repository.

• • • Fiscal and Financial Incentives: The government may explore a suite of financial incentives such as viability gap funding, concessional long-term loans, sovereign green bonds, and risk mitigation grants as well as fiscal measures like import duty and goods and service tax (GST) exemptions, tax holidays, accelerated depreciation, and priority sector lending status to bolster project bankability and attract investment. Specific percentages, caps, or durations for these incentives are not prescribed in the policy and will require further approval by competent Ministries and Departments.

• • • Regulatory Streamlining: A single-window clearance portal will facilitate environmental, land-use, and water consents. The framework establishes timelines for approvals and introduces deemed clearance provisions to prevent bureaucratic delays in project implementation

Conclusion

The policy aims to unlock the country’s untapped geothermal potential through enhanced R&D, public-private partnerships, and streamlined regulatory frameworks, offering significant opportunities for energy sector investments and legal advisory services.