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Govt clears 5 projects under new geothermal energy policy, eyes subsidies

The government has cleared five geothermal energy projects under its first policy, with potential subsidy support and global collaborations to boost clean energy development

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The MNRE secretary added that the government may issue detailed guidelines and a standard operating procedure (SOP) for the implementation of geothermal projects.

Shubhangi Mathur New Delhi

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The government has sanctioned five projects under the first national policy on geothermal energy, including both pilot initiatives and resource assessment projects aimed at exploring the viability and potential of geothermal power in India.
 
“We have given five projects initially where we are using different techniques. The estimated potential for geothermal energy in India is about 10 gigawatt (GW),” said Santosh Sarangi, secretary, Ministry of New and Renewable Energy (MNRE).
 
The sanctioned projects include a Rs 15 crore pilot initiative in Rajasthan’s Barmer district, where Vedanta’s abandoned oil fields will be used to harness geothermal energy.
 
Other projects include geothermal heating for an army base in Tawang, Arunachal Pradesh, validation of the concept of cooling using geothermal energy, development of shallow geothermal energy potential and power generation using integrated solar-geothermal energy.
   
The government could also explore subsidy support such as viability gap funding (VGF) for geothermal energy development, Sarangi said, adding that fiscal mechanisms such as tax and import-related facilitation may also be considered.
 
The national policy on geothermal energy is expected to aid in adopting global best practices in exploration, resource assessment and technology deployment. India is also exploring collaboration with countries such as the US, Iceland and Norway in this area.
 
The MNRE secretary added that the government may issue detailed guidelines and a standard operating procedure (SOP) for the implementation of geothermal projects. Geothermal energy is derived from the earth’s heat and used for heating, cooling and electricity generation.

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First Published: Sep 17 2025 | 8:16 PM IST

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