Published: 14 September 2025DD NewsScience & Technology
India Notifies First-Ever National Policy on Geothermal Energy, 2025
The Ministry of New and Renewable Energy (MNRE) notified the National Policy on Geothermal Energy on September 15, 2025, India's first comprehensive policy framework for harnessing geothermal power. India has an estimated theoretical geothermal resource potential of approximately 10,600 MW, with the Geological Survey of India (GSI) having identified 381 hot springs spread across geothermal areas in Ladakh, Himachal Pradesh, Uttarakhand, and other states.
The policy says the government may explore support mechanisms such as GST and import duty exemptions, tax holidays, accelerated depreciation, viability gap funding and concessional finance, subject to approvals from competent authorities. It notes that 100% FDI is allowed in renewables and encourages hybrid systems combining geothermal with solar energy. Developers may receive exploration permits and long-term development allocations of up to 30 years.
Mains angle
Question: Discuss the salient features of India's first National Policy on Geothermal Energy 2025 and its potential to diversify the renewable mix.
Answer (50 words): MNRE notified the policy on September 15, 2025, addressing an estimated 10,600 MW theoretical potential and 381 hot springs identified by GSI in Ladakh, Himachal, Uttarakhand and elsewhere. Incentives include GST and import-duty exemptions, tax holidays, accelerated depreciation, viability gap funding, 100% FDI, geothermal-solar hybrids and 30-year exploration leases.
6-axis classification
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Frequently asked questions
What is India's first-ever National Policy on Geothermal Energy 2025?
**MNRE notified India's first National Policy on Geothermal Energy on September 15, 2025**. India notified its **first-ever National Policy on Geothermal Energy** to develop geothermal power as a clean baseload energy source.
What is geothermal energy and how is it harnessed for electricity?
**Geothermal energy harnesses heat from the earth's interior** to generate electricity via steam turbines. **India has estimated theoretical geothermal resource potential of approximately 10,600 MW; GSI identified 381 hot springs**.
Why is geothermal energy important for India's clean energy transition?
**Fiscal incentives include GST and import duty exemptions, tax holidays, accelerated depreciation, and viability gap funding**. Unlike solar and wind, geothermal provides continuous 24/7 baseload power, complementing India's renewable energy mix.
Where are India's main geothermal energy potential regions?
**Policy allows 100% FDI in geothermal sector and encourages hybrid systems combining geothermal with solar energy**. Ladakh, Himalayan foothills, and parts of Rajasthan and Gujarat have significant geothermal potential.
What is India's estimated geothermal energy potential?
**Five initial projects sanctioned for exploration; developers can secure 30-year leases**. India's geothermal potential is estimated at over **10,000 MWe**, which the new policy aims to harness systematically.
