Table of Contents
MNRE Introduces India’s First Geothermal Energy Policy
Overview
- Announcement Date – On 15–17 September 2025, MNRE released the policy.
- Policy Name – India’s first National Policy on Geothermal Energy (2025).
- Main Goal – Speed up exploration, development, and commercial use of geothermal energy.
- Energy Role – Geothermal seen as a stable baseload option with solar and wind.
- Net Zero Link – Policy connects directly to India’s 2070 Net Zero target.
Why This Matters
- Always-On Power – Geothermal energy can supply electricity all the time, day and night, unlike solar and wind which depend on weather.
- Untapped Source – India has many natural hot springs and underground heat zones, especially in the Himalayas and volcanic areas, but these have hardly been used till now.
- Useful for Many Needs – Apart from making electricity, this energy can be used for heating houses, keeping greenhouses warm for farming, running fish farms, cold storage, and even cooling through special pumps.
Key Provisions
- Main Authority – MNRE will now handle all rules and permissions for geothermal projects.
- Clear Rules – Companies can apply for special licences to explore and also get long leases, usually up to 30 years, to run power plants.
- Government Support – The policy includes cheap loans, tax benefits and other financial help to reduce the very high cost of drilling.
- Foreign Investment – 100% foreign investment is allowed, so global companies can also set up geothermal projects in India.
- Research and Training – The government will put money into better drilling methods, technology for managing underground heat, and combining geothermal with solar power.
- Re-use of Wells – Old oil and gas wells that are no longer in use can be turned into geothermal wells, saving money and reducing risk.
Implementation Mechanics
- Single Window System – States have been asked to create an easy system so that companies don’t have to run to multiple offices for land, forest and environment clearances.
- National Task Force – A special group will be set up to guide projects and make sure they run smoothly.
- Resource Mapping – Surveys and studies will be expanded in areas that are already known to have geothermal potential, like the Himalayan foothills and Deccan regions.
Opportunities
- Stronger Grid – Geothermal plants can provide stable electricity and reduce the need for coal or gas.
- Industry Growth – Companies that work in drilling, making turbines, and heat-exchange machines will get more business.
- Rural Benefits – Farmers, fish farmers, food storage units, hotels and even tourist spots with hot springs can use geothermal heat directly.
Challenges and Risks
- High Initial Cost – Drilling deep into the earth to find heat is very costly, and success is not always guaranteed.
- Lack of Skills – India will need to train more engineers and workers who understand geothermal technology.
- Environmental Issues – Many hot spring areas are close to forests and sensitive zones, so projects will need to be planned carefully to avoid damage.
Near-Term Outlook
- State-Level Push – States like Uttarakhand are expected to be the first to test geothermal projects since they already have active hot spring zones.
- Funding Support – The next step will be clear announcements of loans, subsidies and international partnerships, which will decide how fast projects move ahead.
- Pilot Plants – The first few small projects will be very important. If they succeed, it will encourage more companies to enter the sector.
Important Questions
- On which dates did MNRE notify the National Geothermal Energy Policy 2025?
- What is the main objective of the National Geothermal Energy Policy 2025?
- How does geothermal energy act as a baseload source compared to solar and wind energy?
- What financial incentives are included in the National Geothermal Energy Policy 2025?
- Which Indian states and regions have major geothermal resource potential?
Conclusion
The National Policy on Geothermal Energy 2025 gives India a proper plan to turn underground heat into clean and reliable energy. It can provide electricity, heating and many direct uses that will benefit people, industries and farmers. But the real success will depend on how quickly the government can bring in funding, build skills, and work with states to turn the plan into working projects. If done right, geothermal energy can become a strong pillar of India’s journey to Net Zero by 2070.
Download Online Mock Test Mobile APP
3
