Ladakh is set to take a significant step towards clean energy generation with Lt Governor Vinai Kumar Saxena approving the setting up of India's first geothermal power project by the Oil and Natural Gas Corporation at Puga valley in Ladakh, at an altitude of over 14,000 feet. According to reports from ETEnergyworld, the LG approved a five-year extension of the memorandum of understanding (MoU) with the Oil and Natural Gas Corporation for the construction of the country's first geothermal power project. 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. As reported by ETEnergyworld, the extension was granted to allow further work after delays caused by harsh weather conditions and difficult terrain. The extension was necessitated by delays attributable to the region's extreme climate and terrain, factors that compress the annual working season into a narrow window and complicate equipment mobilisation at altitudes exceeding 14,000 feet above sea level.
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. As reported by ETEnergyworld, 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 two-well strategy serves multiple purposes: Phase I focuses on deepening the existing well and drilling a second well, both to 1,000 metres, followed by testing and commissioning of the 1 MWe pilot plant. Phase II involves geothermal surveys and investigations in the Chumathang area, culminating in a Detailed Project Report for large-scale commercial development. The successful drilling of the first geothermal well to 405 metres in 2025 was a meaningful achievement given the operating environment, but it was always understood as an exploratory precursor rather than a production depth.
According to ETEnergyworld, ONGC successfully drilled the first geothermal well to a depth of 405 metres in 2025 despite extremely challenging terrain, harsh weather conditions and technical complexities, making it the deepest geothermal well drilled in Ladakh so far. A test well drilled in Puga Valley has already tapped high-pressure steam and hot fluids, generating temperatures exceeding 200 degrees Celsius at a depth of around 400 metres. Geothermometric studies and analysis of geothermal samples have indicated subsurface temperatures exceeding 240 degrees Celsius, considered adequate for power generation. The proposed pilot plant is expected to operate at a turbine inlet temperature of around 200 degrees Celsius and generate about 1 MW of electricity. The successful drilling of the first geothermal well to 405 metres in 2025 was a meaningful achievement given the operating environment, but it was always understood as an exploratory precursor rather than a production depth. Geothermal wells drilled for power generation typically require substantially greater depth to access steam reservoirs with sufficient pressure and volume for continuous turbine operation.
As reported by ETEnergyworld, 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. The Puga Valley and Chumathang regions lie within the Himalayan geothermal belt, where tectonic plate collisions generate intense underground heat. Both Puga Valley and Chumathang are situated along the Himalayan geothermal belt, where tectonic plate collisions create intense underground heat. The geothermal energy project, alongside solar energy initiatives, aims to reduce Ladakh's reliance on conventional fuels, decrease carbon emissions, and position the region as a renewable energy hub, in line with Prime Minister Narendra Modi's vision. The geothermal initiative, alongside Ladakh's expanding solar energy programme, is expected to reduce dependence on conventional fuels, cut carbon emissions and strengthen the Union Territory's position as a renewable energy hub. Geothermal energy is classified as renewable because the Earth's internal heat is continuously replenished on geological timescales. Environmental safety depends on operational practices, particularly fluid containment and reinjection protocols, which are critical at ecologically sensitive sites like Puga Valley.
According to ETEnergyworld, ONGC had sought an extension, citing delays caused by harsh weather conditions and difficult terrain. Considering the strategic importance of the project, Saxena approved the extension of the agreement for another five years, taking the agreement through to 2031. The Lt Governor emphasized that "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." As reported by ETEnergyworld, sustainably harnessing geothermal energy will strengthen Ladakh's energy security and contribute significantly to the vision of making the region carbon-neutral and environmentally sustainable. The broader ambition extends well beyond a single 1 MWe pilot, with the Geological Survey of India having identified multiple prospective zones, many of which remain at early or pre-exploration stages.
