MNRE Launched India’s Initial National Policy on Geothermal Energy

National Strategy for Geothermal Energy

Vision & Objectives: To position geothermal energy as a fundamental element of India’s renewable energy landscape, improving energy security, minimizing greenhouse gas emissions, and promoting sustainable development.

Framework for Implementation (By MNRE):

Global cooperation with top geothermal countries.

Initiative projects within the Renewable Energy Research and Technology Advancement Program.

Concessional loans from IREDA and DFIs for financing projects.

Creation of Centres of Excellence (CoEs) for skill development and technical assistance.

Regular progress updates to monitor milestones and maintain accountability.

Development Model and Implementation: The geothermal development framework encompasses exploration, drilling, feasibility analysis, construction, and operation.

Financial Incentives: Extended concessional loans, Sovereign Green Bonds, Viability Gap Financing (VGF).

Duty exemptions on imports and GST, tax breaks, along with benefits for accelerated depreciation.

Involvement in Renewable Purchase Obligations (RPOs) and Carbon Trading Credits.

Investment Assistance: Complete foreign direct investment (FDI), favorable loans, and global partnerships.

Project Duration: Assistance for geothermal initiatives for a maximum of 30 years, with possible extensions depending on resource availability.

Dedicated financial assistance for North-Eastern and elevated regions.

Transforming deserted oil and gas wells into geothermal initiatives.

Collaborative partnerships with oil, gas, and mineral firms for resource acquisition.

Recommendations for States and Union Territories

Distribution of geothermal zones with exploration licenses (3–5 years).

Unified clearance system for authorizations and permits.

Leasing land at reduced rates for developers.