The policy is designed to make geothermal energy a key part of the country’s renewable energy mix and achieve India’s ambitious target of net-zero emissions by 2070.

Key Features of the Policy

• Recognition & Scope
  • Identifies 381 hot springs & 10 provinces with potential.
  • Supports high-enthalpy (electricity) and low/medium enthalpy (heating, cooling, agriculture, industry) uses.
  • Covers resource assessment to end-use including hybrid systems, storage and repurposing oil/gas wells for geothermal energy.
• Sustainability & Regulation
  • Ensures safe reinjection, rules compliance, and stakeholder consultation in sensitive areas.
  • Provides single-window clearances via state nodal agencies.
• Development & Financing Model
  • Allows 100% FDI, promotes domestic innovation & oil-gas collaboration.
  • Offers risk-sharing, concessional loans, Viability Gap Financing, green bonds, feed-in tariffs, blended finance.
  • Proposes Grants tax/GST exemptions, tax holidays, accelerated depreciation, property tax relief.
• Collaboration & Capacity Building: Promotes international cooperation & peer learning.
• Sites, Leases & Data Infrastructure
  • Exploration leases: 3–5 years; development leases: up to 30+ years with concessional land.
  • Establishes a centralized geothermal data repository with mandatory data submission.