India has officially launched its first national policy on geothermal energy, marking a milestone in the country’s clean energy transition. The policy, introduced by the Ministry of New and Renewable Energy (MNRE), aims to tap into India’s vast geothermal reserves through a mix of incentives, fiscal support, and regulatory frameworks.

The initiative emphasizes the repurposing of abandoned oil and gas wells, along with the adoption of ground source heat pumps for efficient heating and cooling. It encourages joint ventures between geothermal developers and oil, gas, and mineral companies, while offering fiscal benefits such as tax holidays, import duty exemptions, and viability gap funding.

India has already identified 381 hot springs and 10 geothermal provinces, including promising sites in Ladakh, Himachal Pradesh, and Gujarat. Globally, geothermal energy capacity reached 15.4 GW in 2024, with the United States, Indonesia, and the Philippines leading. India now aims to strengthen its role through 100% foreign direct investment, concessional loans, and global collaborations.

The policy grants approvals for geothermal projects for up to 30 years, with possible extensions, positioning India as a rising player in the global geothermal market.