India's Ministry of New and Renewable Energy is planning to draft a national geothermal energy policy by the end of March 2011.
The ministry is currently consulting state officials on the policy that will include information about how development blocks may be awarded.
The Ministry's geothermal department director Ramesh Narayan Sawant told Bloomberg that they must consult with each of the states for the policy framework to be drafted by the end of March.
The country first needs a framework agreement with the states before framing a national policy to ensure they don't contest the right to allocate geothermal fields.
India is looking for more non-polluting, domestic energy sources to reduce its dependence on foreign suppliers and curb carbon emissions.