A confrontation is brewing between the Ladakh administration and the region’s two influential socio-political bodies — the Leh Apex Body and the Kargil Democratic Alliance — over a proposed restructuring of the power sector that critics allege amounts to privatisation.
The issue marks the first major standoff between the administration and Ladakh’s key representative groups since Vinai Kumar Saxena assumed office as Lieutenant Governor in March and initiated a series of development measures across the Union Territory.
The controversy centres around a proposed joint venture between the Ladakh Power Development Department (LPDD) and the Rural Electrification Corporation (REC). According to a memorandum submitted last month by LAB and KDA to the Lieutenant Governor, the proposed structure envisages a 49 per cent stake for LPDD and a 51 per cent share for REC.
The two bodies expressed “strong objection and grave concern” over the proposal, alleging that it could pave the way for privatisation of the power sector in the region.
In their memorandum, the groups urged the administration to immediately reconsider or halt the proposal in its current form and instead explore alternative models that could improve efficiency and service delivery while keeping the power sector fully under public control.
Ladakh MP Haji Haneefa Jan also wrote to the Lieutenant Governor expressing “deep concern and unequivocal opposition” to the proposed move.
“This proposal is not only ill-conceived but also against the interests of the people of Ladakh,” the MP said, adding that transferring control of public assets to an external entity would weaken local accountability and reduce the region’s control over a critical sector.
Echoing similar concerns, Electrical Contractors Association Leh warned that the proposed LPDD-RECPDCL joint venture could marginalise local contractors, limit employment opportunities for Ladakhi youth and increase the tariff burden on consumers.
In response to the growing controversy, Ladakh Chief Secretary Ashish Kundra dismissed reports of privatisation as “baseless and misleading”.
Clarifying the administration’s position, Kundra said no decision regarding privatisation had been taken and urged the public not to be swayed by unverified information or spread misconceptions.
However, LAB and KDA leaders, while addressing a press conference, produced what they described as official documents indicating that the administration was preparing to sign a Memorandum of Understanding (MoU) related to the proposal.
“Chief Secretary sahib gave the impression that we are trying to mislead people. That is not true. We are only trying to make the public aware,” said LAB co-chairman Cheering Dorjey Lakruk.
Lakruk claimed that the two bodies possessed documents showing that an MoU linked to the proposed restructuring was scheduled to be signed on May 9.
Meanwhile, representatives of the Electrical Contractors Association said the move appeared to have been temporarily put on hold following mounting public pressure.
“However, the absence of any official clarification from the UT Administration continues to create uncertainty among local stakeholders,” said Gelek Phunchok, a representative of the association.
The issue has emerged as the first major flashpoint between the Ladakh administration and the region’s representative bodies under the new Lieutenant Governor.
During the tenure of former L-G Kavinder Gupta, Leh witnessed one of its first major incidents of public unrest in decades last year. Subsequent remarks by Gupta describing protesters as “anti-nationals” had further widened the trust deficit between the administration and local groups.
Leaders of the Apex Body reiterated on Saturday that they would continue to oppose any decision affecting Ladakh’s future if taken without safeguarding local interests and consulting stakeholders.