Page 47 - Policy Economic Report - September 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

annually; faster deployment enabled by GST rationalisation could therefore avoid an additional 50–70
million tonnes of CO2 emissions per year by 2030.

By making renewable energy more affordable and accessible, this reform aligns with India’s international
commitments under the Paris Agreement while advancing the nation’s target of 500 GW of non-fossil fuel
capacity by 2030. It firmly positions India as a leader in the global fight against climate change.

The revised GST rates will come into effect from 22nd September 2025. This landmark decision will directly
benefit millions of consumers, farmers, developers, and manufacturers, while contributing to the twin
goals of green growth and energy independence. It underscores the Government’s commitment to
ensuring that clean, affordable, and sustainable energy becomes the foundation of India’s journey
towards Viksit Bharat.

Government of India Notified National Policy on Geothermal Energy (2025) to Accelerate Clean Energy
Transition, Supporting India’s Net Zero 2070 Commitment

The Government of India has notified the National Policy on Geothermal Energy (2025), reinforcing its
commitment towards achieving the ambitious 2070 Net Zero Goal and strengthening the country’s energy
security through diversified renewable energy sources.

India, with its untapped geothermal resources, is poised to leverage this clean and reliable energy source
for power generation and direct-use applications such as district heating, agriculture, aquaculture, and
space cooling and heating via Ground Source Heat Pumps (GSHPs). The newly unveiled policy provides a
comprehensive framework to promote exploration, development, and utilization of geothermal energy in
India.

Key Highlights of the Policy

• Research and Best Practices: Encourages research, inter-ministerial collaboration, and adoption
of global best practices for geothermal energy development. Regulatory and stewardship
responsibilities for geothermal energy will rest with the Ministry.

• Integration with National Goals: Targets integration of geothermal energy with India’s Net Zero
(2070) and renewable energy objectives.

• Diverse Applications: Focus on electricity generation, space heating/cooling, agriculture
(greenhouses, cold storage), tourism, and desalination.

• Technological Innovation: Promotes R&D of advanced systems such as hybrid geothermal-solar
plants, retrofitting abandoned oil wells, and Enhanced/Advanced Geothermal Systems (EGS/AGS).

• Local Innovation and Partnerships: Emphasis on local innovation, joint ventures, and repurposing
existing oil/gas infrastructure.

• Collaboration: Partnerships with international geothermal bodies and pioneering nations, as well
as collaboration with state governments, oil and gas companies, and research institutions.

• Ecosystem Development: Building a robust public-private ecosystem for the long-term
development of the geothermal sector.

• Capacity Building: Promotes knowledge sharing and human resource development in the sector.

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