The policy lays out a comprehensive framework to advance geothermal utilisation through targeted research, inter-ministerial coordination, and global best practices, with regulatory and stewardship responsibilities entrusted to the Ministry of New and Renewable Energy.
The central government has notified the National Policy on Geothermal Energy (2025) as part of its strategy to achieve the ambitious Net Zero 2070 goal and bolster India’s energy security through diversified renewable sources.
“India, with its untapped geothermal reserves, is poised to harness this clean and reliable energy source for electricity and direct-use applications—from district heating and agriculture to aquaculture and space conditioning via Ground Source Heat Pumps (GSHPs),” the Prahlad Venkatesh Joshi-led Ministry of New and Renewable Energy (MNRE) said in a statement on Wednesday evening.
Geothermal energy involves tapping the Earth’s internal heat—stored in rocks and fluids beneath the surface—for electricity generation and thermal applications. Globally, countries such as Iceland, the US, and the Philippines have long harnessed geothermal energy for base-load power, heating, and industrial use. The Union Budget 2025–26 has earmarked ₹12 billion for the segment, signalling a strong policy push.
The newly unveiled policy provides a comprehensive framework to promote exploration, development, and utilisation of geothermal energy in India. It encourages research, inter-ministerial collaboration, and the adoption of global best practices. Regulatory and stewardship responsibilities will rest with MNRE.
The policy aligns geothermal deployment with India’s Net Zero and renewable energy goals, while promoting diverse applications such as electricity generation, space heating and cooling, greenhouse farming, cold storage, tourism, and desalination. It also supports technological innovation, including hybrid geothermal-solar plants, retrofitting abandoned oil wells, and developing Enhanced and Advanced Geothermal Systems (EGS/AGS).
Focus on Local Innovation, Partnerships
Local innovation and partnerships are central to the policy, with emphasis on joint ventures and repurposing existing oil and gas infrastructure. MNRE aims to foster collaboration with international geothermal bodies and pioneering nations, alongside state governments, oil and gas companies, and research institutions.
To build a robust ecosystem, the policy seeks to attract private investment and promote public-private partnerships (PPPs). It also prioritises capacity building through knowledge sharing and human resource development.
As a first step, MNRE has sanctioned five geothermal projects, including pilot initiatives and resource assessment studies to evaluate the viability of geothermal energy in India. The Ministry will continue to monitor progress while creating a conducive environment for developers, industries, and research institutions to participate in India’s clean energy transition.
Meanwhile, state-owned energy entities under the Ministry of Petroleum and Natural Gas—such as ONGC and Oil India Ltd—have launched geothermal pilot projects in Ladakh, Gujarat, and Himachal Pradesh, laying the groundwork for future commercial deployment.