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India Issues First National Geothermal Policy, Setting a Clear Path to Development

The measure creates a unified pathway to move geothermal from studies to pilot deployment.

Overview

  • MNRE’s policy establishes state-issued exploration permits of about three years with possible extensions and development licenses of up to 30 years, supported by a single-window clearance mechanism.
  • It mandates a national geothermal data repository and enables use of the Directorate General of Hydrocarbons’ datasets, while encouraging repurposing of abandoned oil and gas wells.
  • Officials say five pilot projects are in the works, including a 450 KWH integrated commercial pilot at the Raageshwari gas field in Barmer using three wells to be provided by Cairn Oil & Gas of Vedanta.
  • The government cites active interest from US, Norwegian and Icelandic groups, noting pilot studies by foreign teams in the Gulf of Cambay, Arunachal Pradesh and Uttarakhand.
  • Policy tools under consideration include viability gap funding, concessional loans and tax or import relief, alongside 100% FDI and a preference for indigenous technologies, with an estimated 10 GW national potential reported.