Ladakh is set to witness a major clean energy breakthrough after the Union Territory administration approved the extension of a memorandum of understanding (MoU) with Oil and Natural Gas Corporation (ONGC) for India’s first geothermal energy project in the Puga Valley region. Lieutenant Governor Vinai Kumar Saxena approved a five-year extension of the MoU between the Ladakh Administration, LAHDC Leh and ONGC Energy Centre for the development of a pilot geothermal power plant in Puga Valley, located at an altitude of over 14,000 feet. The earlier agreement, signed in February 2021, had expired earlier this year.
According to officials, ONGC will establish a 1 MWe pilot geothermal power plant and prepare a Detailed Project Report for large-scale commercial exploitation of geothermal energy in Ladakh. The project is expected to become India’s first commercial geothermal power initiative. Geothermal energy is generated using heat trapped beneath the Earth’s crust and is considered a renewable and sustainable source of power. Officials said ONGC plans to deepen the existing geothermal well in Puga Valley up to 1,000 metres during the 2026 working season and drill another well in the next phase. The pilot plant is expected to be tested and commissioned during FY 2026–27.
The administration said the project would help reduce dependence on conventional fuels and lower carbon emissions while strengthening Ladakh’s position as a renewable energy hub. Puga Valley and Chumathang, both located along the Himalayan geothermal belt, have shown strong geothermal potential with underground temperatures exceeding 240 degrees Celsius. LG Saxena described the project as a “landmark initiative” in India’s clean energy journey and said it could significantly contribute towards making Ladakh a carbon-neutral region.