ONGC set to build India’s first geothermal power plant in Ladakh

Ladakh is set for a major clean energy expansion after Lt Governor Vinai Kumar Saxena approved a five-year extension of the memorandum of understanding (MoU) with the Oil and Natural Gas Corporation (ONGC) for the construction of India’s first geothermal power project in the Puga Valley.

The project will come up at an altitude of over 14,000 feet in eastern Ladakh and aims to commercially harness geothermal energy as a sustainable alternative source of power.

Officials said 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.

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, officials said.

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.

Geothermal energy is derived from heat stored beneath the Earth’s surface and is considered a renewable and low-carbon source of power.

“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”.

Officials said the 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 second phase of the project will involve surveys and geothermal investigations in the Chumathang area, followed by drilling activities and preparation of a DPR for commercial-scale geothermal development.

Officials said the Puga Valley and Chumathang regions lie within the Himalayan geothermal belt, known for intense underground heat generated by tectonic activity.

A test well drilled in the Puga Valley has already tapped high-pressure steam and hot fluids, producing temperatures exceeding 200 degree celsius at a depth of around 400 metres, officials said.

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.

“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. 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,” Saxena said.

Officials said ONGC successfully drilled the first geothermal well to a depth of 405 metres in 2025 despite challenging terrain and weather conditions, making it the deepest geothermal well drilled in Ladakh so far.

Geothermometric studies and analysis of geothermal samples have indicated subsurface temperatures exceeding 240 degree celsius, considered suitable for power generation.

The proposed pilot plant is expected to operate at a turbine inlet temperature of around 200 degree celsius and generate about 1 MW of electricity, officials added.