The Lieutenant Governor of Ladakh, Vinod Saxena, approved a five year extension of the Memorandum of Understanding with the Oil and Natural Gas Corporation to develop India’s first geothermal power project. Situated in the Puga Valley of eastern Ladakh at an altitude exceeding 14,000 feet, the initiative aims to establish a one megawatt pilot plant. This project is a foundational element in the region’s transition toward carbon neutrality by tapping into sustainable energy from the earth’s interior.
Understanding the Puga Valley Geothermal Project
The Puga Valley project is a pioneering effort to harness geothermal energy, which is the heat generated from within the earth. Puga is located south of the Indus Suture Zone and is recognized as the most promising geothermal field in India due to its high temperature gradient. Experts estimate that subsurface temperatures in the region exceed 240 degrees Celsius, providing an ideal reservoir for electricity generation.
The project is being implemented in phases. The current focus is on a 1 megawatt (MWe) pilot power plant that utilizes high pressure steam to drive turbines. In a significant technical milestone achieved in late 2025, ONGC successfully drilled a well to a depth of 1,000 meters, making it the deepest geothermal well in the country. This accomplishment is particularly notable given the extreme conditions of the site, which sits at an elevation of 14,000 feet above sea level.
Operating at such high altitudes presents immense logistical and engineering hurdles. The working season is limited to a few months between May and October due to sub zero temperatures and heavy snowfall. The extension of the agreement will allow the Oil and Natural Gas Corporation (ONGC) to continue deep drilling and stabilize the steam flow required for steady power production.
The Tripartite Agreement and Strategic Goals
The development of the Puga project is governed by a tripartite agreement involving the Union Territory Administration of Ladakh, the Ladakh Autonomous Hill Development Council (LAHDC) Leh, and the ONGC Energy Centre. The original agreement was signed in February 2021 and was set to expire in February 2026. The recent five year extension provides the necessary timeframe to complete the pilot phase and prepare a Detailed Project Report (DPR) for commercial scale expansion, potentially reaching 10 megawatts or more.
The project is being spearheaded by the Oil and Natural Gas Corporation (ONGC), which is India’s largest crude oil and natural gas company. Headquartered in New Delhi, ONGC was established in 1956 and holds the prestigious Maharatna status. The company’s involvement in geothermal energy marks a diversification into clean power, aligning with the national goal of reaching Net Zero emissions by 2070.
For Ladakh, the project holds strategic importance beyond just power generation. Unlike solar and wind energy, which are intermittent, geothermal energy provides baseload power, meaning it can generate electricity 24 hours a day. This reliability is vital for the remote border regions of Ladakh, where the grid infrastructure is still developing and energy security is a priority.
Driving Ladakh’s Carbon Neutral Vision
The geothermal project is a core component of the vision to make Ladakh India’s first carbon neutral Union Territory. This objective was first articulated by Prime Minister Narendra Modi in 2020 and is being pursued through a multi-pronged strategy. The region aims to meet 100 percent of its energy requirements from renewable sources by 2030 and achieve full decarbonization by 2050.
In addition to electricity, geothermal heat can be used for direct applications such as space heating, greenhouses, and aquaculture. This is particularly relevant for Ladakh, where heavy energy is required for heating during the long, harsh winters. By utilizing subterranean heat, the region can reduce its reliance on fossil fuels like diesel and kerosene, which are currently transported over long distances at high costs and environmental risks.
The success of the Puga Valley pilot plant will pave the way for other geothermal fields in the region, such as Chumathang. Together, these sites represent a significant shift in India’s energy landscape, positioning Ladakh as a hub for sustainable mountain development and high altitude renewable technology.
Key Takeaways
- The Ladakh administration has approved a five year extension of the MoU with ONGC for India’s first geothermal power project.
- The project is located in the Puga Valley of eastern Ladakh, which is part of the high altitude Himalayan geothermal belt.
- The pilot plant will have a capacity of 1 megawatt (MWe) and operates at an altitude of over 14,000 feet.
- In late 2025, ONGC achieved a milestone by drilling a geothermal well to a depth of 1,000 meters, the deepest in the country.
- The initiative supports Ladakh’s vision of becoming a carbon neutral Union Territory by 2050.
- ONGC, established in 1956 and headquartered in New Delhi, is the nodal agency for implementing the project.
- Geothermal energy provides baseload power, ensuring a constant supply of electricity unlike intermittent sources like solar or wind.
