The project aims to establish a 1 MW pilot geothermal power plant at over 14,000 feet altitude, marking India’s first commercial-scale geothermal energy initiative.
BY PC Bureau
May23, 2026: Ladakh is set to take a major step in India’s clean energy transition after Lieutenant Governor Vinai Kumar Saxena approved a five-year extension of the Memorandum of Understanding (MoU) with Oil and Natural Gas Corporation (ONGC) for the country’s first geothermal energy project in the Puga Valley region of Ladakh.
The project, located at an altitude of over 14,000 feet, is expected to mark India’s first commercial-scale exploration of geothermal energy as a sustainable power source.
The earlier tripartite MoU signed on February 6, 2021 between the Ladakh Administration, LAHDC Leh, and the ONGC Energy Centre expired in February this year. ONGC had sought an extension citing incomplete work due to Ladakh’s harsh weather conditions and challenging terrain.
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Considering the strategic importance of the project, the Lieutenant Governor approved an extension of the agreement for another five years. Under the renewed MoU, ONGC will establish a 1 MWe pilot geothermal power plant in Puga Valley while also preparing a Detailed Project Report (DPR) for large-scale commercial geothermal energy generation in Ladakh.
Geothermal energy is generated from heat stored beneath the Earth’s crust. The heat originates deep within the planet and naturally warms underground rocks and water reservoirs. Although India possesses geothermal potential in several regions, the country has so far not developed any large-scale commercial geothermal power plant, making the Ladakh project a first-of-its-kind initiative.
Officials said ONGC Energy Centre will deepen the existing geothermal well in Puga Valley up to 1,000 metres during the 2026 working season. A second geothermal well of similar depth will be drilled in the next phase. Testing and commissioning of the pilot plant are expected during the 2026–27 financial year.
The second phase of the project will focus on the Chumathang region, where additional geothermal surveys and drilling activities will be carried out before preparing a DPR for commercial-scale expansion.
The Puga Valley and Chumathang regions lie along the Himalayan geothermal belt, an area formed by tectonic plate collision that creates intense underground heat. Officials said earlier exploratory drilling in Puga Valley successfully tapped high-pressure steam and hot geothermal fluids, with temperatures exceeding 200 degrees Celsius at depths of only around 400 metres.
According to the administration, the geothermal project, along with Ladakh’s growing solar energy initiatives, is expected to reduce dependence on conventional fuels, lower carbon emissions, and strengthen the Union Territory’s position as a renewable energy hub.
Calling the project a “game changer,” LG Vinai Kumar Saxena said the geothermal initiative could become a landmark chapter in India’s clean energy journey.
“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 Ladakh a carbon-neutral and environmentally sustainable region,” he said.
Despite difficult terrain, extreme weather, and technical challenges, ONGC successfully drilled Ladakh’s deepest geothermal well in 2025, reaching a depth of 405 metres.
Geothermometric studies and geothermal sample analysis revealed underground temperatures exceeding 240 degrees Celsius — considered suitable for geothermal power generation. The proposed pilot plant is expected to operate at a turbine inlet temperature of around 200 degrees Celsius and generate approximately 1 MW of electricity.
