Ladakh is set to take a major step towards clean energy generation after Lieutenant Governor Vinai Kumar Saxena approved a five-year extension of the memorandum of understanding (MoU) with the Oil and Natural Gas Corporation (ONGC) for the construction of India’s first geothermal power project in the Puga Valley.
The project, to be developed at an altitude of over 14,000 feet in eastern Ladakh, aims to commercially harness geothermal energy as a sustainable and low-carbon source of power, officials said.
The earlier tripartite MoU, signed on February 6, 2021, between the Ladakh administration, the Ladakh Autonomous Hill Development Council (LAHDC), Leh, and the ONGC Energy Centre, expired on February 5, 2026.
Officials said ONGC had sought an extension citing delays caused by harsh weather conditions and the difficult terrain of the region. Considering the strategic importance of the project, Saxena approved the extension of the agreement for another five years.
Under the revised MoU, ONGC will establish a 1-MWe pilot geothermal power plant in the Puga Valley and prepare a detailed project report (DPR) for large-scale commercial exploitation of geothermal resources in Ladakh.
Geothermal energy is derived from heat stored beneath the Earth’s surface and is considered a renewable and environmentally sustainable source of electricity. India currently does not have any large-scale commercial geothermal power plant, making the proposed facility in Ladakh the first of its kind in the country.
Officials said the ONGC Energy Centre will deepen the existing geothermal well to 1,000 metres during the 2026 working season and subsequently drill another well of similar depth in the next phase of the project. Testing, evaluation and commissioning of the pilot plant are expected during the 2026-27 financial year.
The second phase of the project will involve geothermal surveys and investigations in the Chumathang area, followed by drilling activities and preparation of a DPR for commercial-scale geothermal development.
The Puga Valley and Chumathang regions fall within the Himalayan geothermal belt, known for intense underground heat generated by tectonic activity. Officials said a test well drilled in the Puga Valley had already tapped high-pressure steam and hot fluids, recording temperatures exceeding 200 degrees Celsius at a depth of around 400 metres.
The geothermal initiative, alongside Ladakh’s expanding solar energy programme, is expected to reduce dependence on conventional fuels, lower carbon emissions and strengthen the Union Territory’s position as a renewable energy hub.
“The geothermal energy project in Puga Valley has the potential to become a game changer for Ladakh and a landmark initiative in India’s clean energy journey. Harnessing geothermal energy sustainably will strengthen Ladakh’s energy security and contribute significantly to the vision of making the region carbon-neutral and environmentally sustainable,” Saxena said.
Officials said ONGC successfully drilled the first geothermal well to a depth of 405 metres in 2025 despite challenging terrain and weather conditions, making it the deepest geothermal well drilled in Ladakh so far.
Geothermometric studies and analysis of geothermal samples have indicated subsurface temperatures exceeding 240 degrees Celsius, considered suitable for power generation. The proposed pilot plant is expected to operate at a turbine inlet temperature of around 200 degrees Celsius and generate nearly 1 MW of electricity, they added.
