India's Geothermal Energy Policy: Tapping Earth's Core for a Sustainable Future

Harnessing the immense heat stored within the Earth’s crust, India is making a strategic and decisive pivot towards geothermal energy, a stable, reliable, and potent source of clean power. The landmark notification of the National Policy on Geothermal Energy (NPGE) in early 2025 by the Union Ministry of New & Renewable Energy (MNRE) marks a watershed moment in the nation’s climate action strategy. This policy is designed to establish geothermal energy as a key pillar in India’s ambitious journey towards its Panchamrit commitments and the ultimate goal of achieving Net Zero emissions by 2070. The policy provides the first-ever comprehensive national roadmap to unlock India’s vast but largely untapped geothermal potential, which is currently estimated by the Geological Survey of India (GSI) to be around 10,600 Megawatts (MW).

The most significant and tangible stride in this direction is the renewed momentum and accelerated activity at the Puga Valley geothermal project in the remote, high-altitude region of Ladakh. After a nearly two-year pause necessitated by technical reassessments and logistical challenges inherent to the fragile Himalayan ecosystem, drilling operations were vigorously recommenced by the Oil and Natural Gas Corporation (ONGC) in mid-2024. As of late 2025, this flagship project is on the verge of completing India’s first-ever commercial-scale geothermal power well. This is a monumental achievement in India’s energy history. The initial pilot phase aims to generate 1 MW of electricity, a critical output that will provide a clean, 24/7 power source for the local communities and strategic military installations, drastically reducing their dependence on expensive and polluting diesel generators. This project is not merely a power plant; it is a live laboratory for geothermal exploration in the Himalayas and a beacon for future, larger-scale developments across the country.

Fun Fact: The Earth’s core is as hot as the surface of the sun (about 6,000°C). While we can’t drill that deep, even a few kilometers down, the heat is intense enough to boil water. This natural, inexhaustible heat engine has been powering our planet for 4.5 billion years and offers a perpetual source of clean energy.

Understanding Geothermal Energy: The Earth’s Inner Fire

Geothermal energy is the thermal energy generated by the natural decay of radioactive isotopes (like uranium, thorium, and potassium) deep within the Earth’s core and mantle, and stored in the rock and fluids of the planet’s crust. It is a powerful, consistent, and renewable resource that can be harnessed for a wide spectrum of applications, ranging from large-scale, grid-connected electricity production to localized, direct-use heating and cooling solutions that can transform local economies.

The accessibility of this energy depends on geological conditions. In some areas, heat is concentrated at shallower depths due to tectonic plate boundaries, volcanic activity, or thinner crust, making it economically viable to extract. Geothermal resources are broadly classified based on their temperature and physical state (water or steam), which determines their most suitable application.

India’s Geothermal Potential: A Nationwide Hotspot Map

The Geological Survey of India (GSI) has been instrumental in mapping the country’s geothermal resources since the 1970s. Their extensive surveys have identified approximately 340 geothermal hot springs and delineated seven major geothermal provinces, which are the primary targets for exploration under the new policy.

1. The Himalayas: Stretching from Jammu & Kashmir to Arunachal Pradesh, this is the most promising region, characterized by high-temperature resources. The Puga Valley in Ladakh is the crown jewel of this province. The collision of the Indian and Eurasian tectonic plates creates the ideal geological conditions for intense geothermal activity.
2. Sohana (Haryana-Rajasthan): This region exhibits a high geothermal gradient and crustal heat flow, making it a significant area of interest for both power generation and direct heat use, especially given its proximity to major agricultural and industrial centers.
3. West Coast: A long belt extending from the Konkan coast in Maharashtra down to Kerala. It is marked by numerous hot springs and is considered a high-priority area for medium-temperature resource development.
4. Cambay Basin (Gujarat): This petroliferous basin is known for its high heat flow and geothermal gradients. The presence of hot water in abandoned oil and gas wells presents a unique opportunity for co-production of geothermal energy, a concept known as synergistic development.
5. Son-Narmada-Tapi (SONATA) Rift Zone: This major geological fault line running across central India is a zone of high heat flow, with significant potential identified in areas of Chhattisgarh (Tattapani) and Madhya Pradesh.
6. Godavari Basin: Another major river basin with a geological structure that indicates promising underlying geothermal reservoirs, particularly in parts of Andhra Pradesh and Telangana.
7. Mahanadi Basin: This basin, primarily in Odisha, shows geothermal signatures that warrant further deep exploration for both power and direct heat applications.

To remember these key provinces for the UPSC Prelims, one can use the following mnemonic:

Mnemonic for India’s Geothermal Provinces: He Saw West Coast’s Son Go Mad. (Himalayas, Sohana, West Coast, Cambay, SONATA, Godavari, Mahanadi)

The National Policy on Geothermal Energy (NPGE) 2025: A Paradigm Shift

The NPGE 2025 is the cornerstone of India’s strategy to mainstream geothermal energy. It moves beyond sporadic exploration to create a structured, predictable, and incentivized ecosystem for public and private sector participation.

Core Objectives of the NPGE:

• Phase-I Deployment: To facilitate the development of an initial 1,000 MW of geothermal power generation capacity by 2030.
• Resource Assessment: To carry out a comprehensive national resource assessment using advanced exploration techniques to update the 10,600 MW estimate and identify specific project sites.
• Promoting Direct Heat Use: To establish a framework for developing geothermal resources for non-electrical applications, aiming to substitute fossil fuels in heating and cooling.
• R&D and Technology Indigenization: To foster research and development in geothermal exploration, drilling, and power plant technology, with a special focus on Enhanced Geothermal Systems (EGS) and cost reduction.
• Capacity Building: To create a skilled workforce of geoscientists, drilling engineers, and power plant operators to support the burgeoning sector.

Key Provisions and Mechanisms:

The policy introduces several mechanisms to de-risk investment and attract private capital:

• National Geothermal Agency (NGA): A nodal agency will be established under the MNRE to oversee licensing, data management, and policy implementation. The GSI will act as the primary technical advisor.
• Structured Exploration Licensing: The policy proposes a multi-stage licensing process, starting with reconnaissance permits and moving to exploration and production leases, providing clarity and security of tenure to developers.
• Financial Incentives: To overcome the high upfront costs and risks associated with drilling, the policy provides for Viability Gap Funding (VGF) for demonstration projects. It also includes provisions for tax holidays, accelerated depreciation, and concessional customs duty on imported equipment.
• Public-Private Partnership (PPP) Model: The policy strongly encourages a PPP model, where public sector undertakings (PSUs) like ONGC and GSI handle the high-risk initial exploration, and private players are brought in for development and power generation, leveraging their efficiency and capital.
• Grid Integration and Power Purchase: The policy mandates that geothermal power will be classified as a Renewable Energy Source with “must-run” status, ensuring priority grid access. State electricity distribution companies (DISCOMs) will be encouraged to sign long-term Power Purchase Agreements (PPAs) at tariffs determined by the Central Electricity Regulatory Commission (CERC).

Statistic Spotlight: Iceland, a global leader in geothermal energy, generates nearly 30% of its electricity and provides heating for almost 90% of its homes using geothermal resources. This demonstrates the transformative potential of this energy source for achieving national energy independence.

Flagship Projects & Recent Developments (Post-2024)

While the policy provides the framework, it is the on-ground projects that signal India’s true progress.

• Puga Valley, Ladakh (The Himalayan Beacon): The Puga project is India’s most advanced geothermal initiative. The renewed drilling in 2024-2025, led by ONGC’s Energy Centre, aims to drill wells up to 1,000 meters deep to tap into a high-temperature reservoir. The project will utilize a Binary Cycle power plant, which is ideal for the medium-to-high temperature fluid expected at the site. In a binary plant, the hot geothermal fluid is passed through a heat exchanger, where it heats a secondary fluid (a hydrocarbon like isobutane or isopentane) with a lower boiling point. This secondary fluid vaporizes, drives the turbine, and is then condensed and reused in a closed loop. This technology is environmentally safer as it involves no direct emission of geothermal gases into the atmosphere. The strategic importance of this project for providing year-round power to Ladakh, reducing the army’s massive logistical carbon footprint from transporting diesel, cannot be overstated.
• Tattapani, Chhattisgarh (Central India’s Hope): The Tattapani geothermal field in the SONATA rift zone is another high-priority site. The National Geophysical Research Institute (NGRI) has conducted extensive studies here. Plans are underway for a medium-temperature plant, likely in the 20-30 MW range. The state government of Chhattisgarh, in collaboration with NTPC, is actively pursuing a demonstration project here, which could catalyze development across the entire central Indian geothermal province.
• Enhanced Geothermal Systems (EGS) Research: A significant development under the NPGE’s R&D mandate is the establishment of a national consortium, announced in late 2024, involving IITs, NGRI, and ONGC, to develop a pilot EGS project. This long-term initiative aims to master the technology of ‘hot dry rock’ fracking, which could potentially make geothermal energy a viable option even in states without natural hydrothermal systems, completely changing India’s energy landscape.

Critical Policy Appraisal

Conclusion: A Long-Term Investment in Energy Security

The launch of the National Policy on Geothermal Energy 2025 and the tangible progress at Puga Valley represent a paradigm shift for India. Geothermal energy is no longer a subject of purely academic interest; it is now a strategic component of the nation’s energy security and climate mitigation architecture. Unlike solar and wind, which are variable renewable energy (VRE) sources, geothermal offers the unique advantage of providing clean, firm, and reliable baseload power, operating 24/7 with a high capacity utilization factor (often exceeding 90%). This makes it an ideal candidate to stabilize the grid as the share of VRE sources increases.

The path forward is challenging and requires sustained political will, long-term investment, and technological innovation. However, by successfully harnessing the Earth’s internal heat, India can not only diversify its energy portfolio but also drive sustainable development in its remotest regions, reduce its import bill, and take a giant leap towards a truly green and self-reliant energy future.

** Analytical Lens: UPSC Focus (Mains & Prelims)**

1. Conceptual Basis: The legal and policy backbone for geothermal development is the National Policy on Geothermal Energy (2025). It operates within the broader framework of the Electricity Act, 2003, which promotes the development of renewable energy sources, and is strategically aligned with India’s Nationally Determined Contributions (NDCs) under the Paris Agreement.

2. UPSC Integration: Connecting the Dots

• Geography (GS-I & III): The distribution of geothermal provinces is directly linked to plate tectonics, volcanism, and the structure of the Indian subcontinent. Questions can be framed on the geological reasons for high geothermal potential in the Himalayas versus the Deccan Traps.
• Environment & Economy (GS-III): Geothermal energy is a core topic under Renewable Energy. It connects directly to themes of Energy Security, reducing the carbon intensity of the economy, Climate Change Mitigation, and the challenges of grid integration of renewables. The PPP model and financial incentives are key economic aspects.
• Science & Technology (GS-III): The working principles of different geothermal plants (Flash vs. Binary Cycle) and emerging technologies like Enhanced Geothermal Systems (EGS) are important. This links to awareness of new technologies for sustainable development.

3. Future Impact & Policy Relevance: The long-term impact of a successful geothermal policy is profound. It offers a solution to the intermittency of solar and wind power by providing a stable, round-the-clock renewable energy source. This enhances grid stability and reduces the need for expensive battery storage or fossil fuel-based peaker plants. For remote regions like Ladakh or the Northeast, it represents a path to energy self-sufficiency, fostering economic development and strengthening national security. The policy’s emphasis on direct heat use could also decarbonize significant sections of the MSME sector, particularly in food processing, textiles, and aquaculture.

4. Prelims Practice Question (MCQ):

Question: Consider the following pairs regarding India’s geothermal provinces and their locations:

1. Puga Valley : Himalayas
2. Tattapani : SONATA Rift Zone
3. Cambay : West Coast Province
4. Sohana : Mahanadi Basin

Which of the pairs given above are correctly matched? (a) 1 and 2 only (b) 1, 2 and 3 only (c) 3 and 4 only (d) 1, 2, 3 and 4

Answer: (a) 1 and 2 only Explanation: Puga Valley is correctly located in the Himalayan geothermal province in Ladakh. Tattapani is a key site in the Son-Narmada-Tapi (SONATA) Rift Zone in Chhattisgarh. The Cambay Basin in Gujarat is its own distinct geothermal province, not part of the West Coast province. The Sohana geothermal field is located in the Haryana-Rajasthan region and is a separate province, not in the Mahanadi Basin.

5. Mains Sample Question:

Question (15 Marks): “The National Policy on Geothermal Energy (2025) aims to transform geothermal from a marginal resource to a key pillar of India’s energy security.” Critically analyze the provisions of the policy, discussing the key challenges and the strategic importance of geothermal energy in achieving India’s Net Zero targets.

Mind Map Outline (Revision Structure)

• India’s Geothermal Energy Strategy
  • Core Concept: Geothermal Energy
    • Definition: Thermal energy from the Earth’s interior.
    • Source: Radioactive decay in the core and mantle.
    • Classification of Resources:
      • High-Temperature (>220°C)
      • Medium-Temperature (150-220°C)
      • Low-Temperature (30-150°C)
      • Enhanced Geothermal Systems (EGS) / Hot Dry Rock
  • India’s Geothermal Landscape
    • Total Estimated Potential: 10,600 MW (GSI).
    • Seven Major Geothermal Provinces:
      • Himalayas (e.g., Puga Valley)
      • Sohana (Haryana-Rajasthan)
      • West Coast (Konkan Belt)
      • Cambay Basin (Gujarat)
      • SONATA Rift Zone (e.g., Tattapani)
      • Godavari Basin
      • Mahanadi Basin
  • National Policy on Geothermal Energy (NPGE) 2025
    • Primary Objectives:
      • Deploy 1,000 MW by 2030.
      • Promote Direct Heat Use.
      • Foster R&D (especially in EGS).
      • Build national capacity.
    • Key Mechanisms & Provisions:
      • Nodal Body: National Geothermal Agency (NGA).
      • Financial Support: Viability Gap Funding (VGF), tax incentives.
      • Investment Model: Public-Private Partnership (PPP).
      • Regulatory Framework: Must-run status, PPA security.
  • Implementation & Key Projects
    • Puga Valley, Ladakh:
      • Flagship project, drilling recommenced 2024.
      • Technology: Binary Cycle Plant.
      • Strategic Importance: Energy for remote areas, defense.
    • Tattapani, Chhattisgarh:
      • Located in SONATA zone.
      • Medium-temperature potential.
    • EGS Research: National consortium for pilot project.
  • Analysis & UPSC Focus
    • Challenges:
      • High upfront costs and exploration risks.
      • Technological and skill deficits.
      • Environmental concerns (seismicity, contamination).
      • Logistics in remote/sensitive areas.
    • Opportunities (Way Forward):
      • Provides stable, baseload renewable power.
      • Grid stabilization.
      • Decentralized development and energy security.
      • Decarbonization of heating/cooling.
    • Inter-Topic Linkages:
      • Geography: Plate Tectonics.
      • Economy: Energy Security, PPP models.
      • Environment: Climate Change, Renewables.
      • Science & Tech: EGS, Binary Cycle.