Ladakh is set for a major energy reform as LG Vinai Kumar Saxena approved a 5-year MoU extension with ONGC. The pact is for setting up India’s first geothermal power project at Puga valley, aiming for sustainable energy in the region.
Ladakh is all set for a major energy reform with the first-ever commercial exploration of geothermal energy being used as a sustainable alternative source of energy. Vinai Kumar Saxena, Lieutenant Governor of Ladakh, has approved the extension of the MoU for 5 years with Oil and Natural Gas Corporation (ONGC) – a Govt of India PSU, for setting up India’s first geothermal power project at Puga valley in Ladakh, at an altitude of over 14,000 ft.
According to an official release, the earlier tripartite MoU signed with ONGC on 6th February 2021 had expired on 5th February 2026, according to an official statement. Since then, ONGC has been requesting an extension of the MoU, as a lot of work had remained incomplete due to harsh weather conditions. Considering the significance of this project, LG Saxena had granted an extension of the MoU between the Ladakh Administration, LAHDC Leh and ONGC Energy Centre, for another 5 years.
Project Details and Significance
As per the MoU, the ONGC will set up a 1 MWe pilot geothermal power plant in Puga Valley, along with preparing a Detailed Project Report (DPR) for large-scale commercial exploitation of geothermal energy in Ladakh.
Geothermal energy is the heat extracted from beneath the earth’s crust. This naturally renewable heat originates from the planet’s core and warms up the surrounding rocks and underground water reservoirs. So far, India does not yet have a large-scale, commercial geothermal power plant, and hence, the geothermal energy plant being developed in Puga Valley in Ladakh is the first of its kind project in India, the release stated.
Phased Development Plan
As per the MoU, ONGC Energy Centre will deepen the existing geothermal well up to 1000 metres during the 2026 working season itself, and drill another geothermal well of 1000 meters in the next phase of the project. The testing, evaluation and commissioning of the pilot geothermal power plant is expected in FY 2026-27.
Subsequently, under Phase-II of the project, surveys and geothermal investigations will be conducted in the Chumathang area, followed by drilling activities and preparation of DPR for commercial-scale geothermal development in Ladakh.
High Geothermal Potential
Puga Valley and Chumathang areas in Ladakh sit along the Himalayan geothermal belt, where two tectonic plates collide, creating intense underground heat. According to the statement, the test well dug in Puga Valley has successfully tapped high-pressure steam and hot fluids, generating more 200°C of heat at a depth of just 400 meters.
A ‘Game Changer’ for Ladakh
The geothermal initiative, along with solar energy projects in Ladakh, would help reduce dependence on conventional fuels, lower carbon emissions and position Ladakh as a leading renewable energy hub in the country, as envisioned by Hon’ble Prime Minister, Shri Narendra Modi.
“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 in a sustainable manner will not only strengthen Ladakh’s energy security but also significantly contribute towards the vision of making Ladakh a carbon-neutral and environmentally sustainable region. This MoU extension is crucial for completing scientific exploration and laying the foundation for large-scale geothermal power generation in Ladakh,” LG Saxena said.
Exploration and Findings
According to the release, despite extremely challenging terrain, harsh weather conditions and technical complexities, ONGC successfully drilled the first geothermal well up to a depth of 405 metres in 2025, making it the deepest geothermal well drilled in Ladakh so far.
Geothermometric studies and analysis of geothermal samples revealed the subsurface temperatures exceeding 240 degrees Celsius, which are considered adequate for geothermal power generation.
The proposed pilot power plant is expected to operate at a turbine inlet temperature of approximately 200 degrees Celsius with a targeted generation capacity of 1 MW. (ANI)
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