Ladakh’s Geothermal Leap: ONGC Pact Extension Pushes India’s First Hot-Rock Power Project Forward

Ladakh’s clean-energy story has received a major boost with the extension of the memorandum of understanding between the Union Territory administration, the Ladakh Autonomous Hill Development Council Leh, and ONGC Energy Centre for India’s first geothermal power project at Puga Valley. The renewed agreement gives the project another five-year runway, allowing ONGC to continue drilling, testing and preparing the ground for commercial-scale geothermal development in one of India’s most promising underground heat zones. Reports say Lieutenant Governor Vinai Kumar Saxena approved the extension after the earlier tripartite MoU, signed on 6 February 2021, expired on 5 February 2026.

The project is located in Puga Valley, a high-altitude geothermal field in Ladakh’s Changthang region, at over 14,000 feet. Unlike solar or wind power, geothermal energy does not depend on sunlight, cloud cover or wind speed. It taps heat stored beneath the Earth’s surface and converts it into usable energy through hot fluids and steam. For Ladakh, where winter conditions are severe and energy logistics are difficult, this makes geothermal power especially valuable. It can provide a steadier renewable-energy source while reducing dependence on transported fossil fuels.

Under the extended MoU, ONGC Energy Centre will deepen the existing geothermal well up to 1,000 metres during the 2026 working season and drill another 1,000-metre geothermal well in the next phase. The pilot geothermal plant is expected to have a targeted generation capacity of 1 MWe, with testing, evaluation and commissioning expected in FY 2026–27. ONGC will also prepare a detailed project report for larger commercial exploitation of Ladakh’s geothermal resources.

The scientific promise of Puga is significant. The area lies along the Himalayan geothermal belt, where tectonic activity has created unusually high underground heat. Reports based on the official release say the test well at Puga tapped high-pressure steam and hot fluids, with temperatures of more than 200°C at a depth of around 400 metres. Geothermometric studies and sample analysis have indicated subsurface temperatures exceeding 240°C, which are considered adequate for geothermal power generation.

This is why Puga Valley is not just another renewable-energy project. It could become a national template. A technical paper on the Puga geothermal field notes that the area has high-temperature conditions at shallow depths and is favourable for power production as well as other industrial uses of geothermal energy. The same study observed that Puga has perhaps the greatest geothermal potential in the Indian subcontinent, with independent studies indicating a strong probability that the field could sustain a 10–20 MWe power plant in the future.

The project has already passed through difficult terrain and engineering challenges. The official Ladakh administration had earlier stated that the 1 MW geothermal project at Puga was being implemented by ONGC and that drilling of 450 metres had been completed, with further drilling planned. That update also noted that two thermal wells were being constructed to tap geothermal energy and that the generated power would be integrated into the grid for domestic consumption in nearby villages.

For Ladakh, the benefits go beyond electricity. Remote villages in the Changthang region face harsh winters, difficult road access and high energy costs. A successful geothermal plant can support local power supply, reduce diesel dependence, and create a model for clean-energy development suited to cold desert conditions. The project also fits into Ladakh’s larger renewable-energy ambition, which includes major solar initiatives such as the proposed 11 GW solar project at Pang.

The Phase-II plan is equally important. After the Puga pilot, surveys and geothermal investigations are expected in the Chumathang area, followed by drilling and preparation of a DPR for commercial-scale geothermal development in Ladakh. Chumathang and Puga are both known for hot springs and geothermal manifestations, making them logical candidates for further scientific exploration.

The project also has a strategic dimension. Ladakh is a sensitive border region where reliable infrastructure matters. Clean, localised power generation can strengthen civilian resilience, support local livelihoods, and reduce the energy burden in remote high-altitude areas. If the pilot succeeds, India could finally move geothermal energy from academic potential to operating infrastructure.

There are challenges too. Geothermal drilling in Ladakh has to deal with short working seasons, freezing conditions, remote logistics and complex subsurface geology. Earlier technical studies on Puga noted difficulties such as limited fair-weather windows, restrictions on rig size, travel time, availability of raw material and the need for specialised pressure-control equipment. These are real engineering hurdles, but they also make the project more valuable if ONGC can prove the model.

The extended MoU therefore marks more than an administrative renewal. It gives India’s first geothermal power project the continuity it needs to move from exploration to commissioning. If Puga Valley delivers, Ladakh could become the birthplace of India’s geothermal power sector, adding a new pillar to the country’s renewable-energy mix alongside solar, wind, hydro and green hydrogen.