The Ministry of New and Renewable Energy has notified the National Policy on Geothermal Energy to develop India’s underground heat resources as a source of clean power. The government commissioned India’s first two geothermal wells in Puga Valley, Ladakh in July 2026, marking the beginning of practical work on this energy source. The policy and these initial projects aim to support India’s journey towards net zero emissions by 2070.
What the policy contains
The National Policy on Geothermal Energy was announced in September 2025. The Ministry of New and Renewable Energy is the lead agency responsible for carrying it out.
The policy focuses on several areas:
- Systematic exploration and development of geothermal resources across India
- Research into drilling technology and how to manage geothermal reservoirs
- Direct applications of geothermal heat for heating, cooling and agriculture
- Support for Ground Source Heat Pumps used in buildings
- A clear regulatory framework to encourage both government and private companies to invest
- Reusing abandoned oil and gas wells for geothermal purposes
- Setting up a national database of geothermal information and centres for research
India has identified 381 hot springs and 10 geothermal provinces nationwide. The Geological Survey of India estimates India’s theoretical geothermal potential at nearly 10,600 megawatts. Of this, 42 sites have been identified as promising for electricity generation and direct heat applications.
As of December 2026, the government is supporting five research projects. These include a pilot project in Ankleshwar, Gujarat that is evaluating electricity generation from old oil and gas wells. In Gandhinagar, Gujarat, a demonstration project combining solar and geothermal energy has drilled three wells producing fluid at 70 to 80 degrees Celsius and has generated 50 to 90 kilowatts of electricity. Studies are underway in Arunachal Pradesh, Telangana and other locations.
The two wells commissioned in Puga Valley, Ladakh are each 1,000 metres deep. They will support evaluation of the geothermal reservoir and pave the way for India’s first 1-megawatt demonstration power project.
What this means for you
Geothermal energy offers electricity that is available round the clock, unlike solar and wind power which depend on weather. This makes it useful for meeting India’s steady electricity demand as the country moves away from coal and fossil fuels. Over time, geothermal technology could also provide heating and cooling for buildings and support agriculture and aquaculture through direct use of underground heat.