India’s First Geothermal Power Project in Ladakh

Ladakh has approved a five-year extension of the Memorandum of Understanding (MoU) with Oil and Natural Gas Corporation (ONGC) for the development of the Puga Geothermal Power Project, India’s first geothermal power project, at Puga Valley in eastern Ladakh. The earlier tripartite MoU signed in February 2021 had expired in February 2026.

The extended agreement between the Ladakh Administration, the Ladakh Autonomous Hill Development Council (LAHDC), Leh, and the ONGC Energy Centre aims to establish a pilot geothermal power plant and lay the foundation for large-scale geothermal energy development in India.

About Puga Geothermal Power Project

The Puga Geothermal Power Project is India’s first geothermal power project being developed at Puga Valley in Ladakh to harness underground geothermal heat for electricity generation.

• The project is being developed by Oil and Natural Gas Corporation (ONGC) through the ONGC Energy Centre in collaboration with the Ladakh Administration and the Ladakh Autonomous Hill Development Council (LAHDC), Leh.
• A five-year extension of the tripartite Memorandum of Understanding (MoU) was approved in 2026 after the earlier agreement signed in February 2021 expired.
• The revised MoU includes the following provisions:
  • Establishment of a 1 MW pilot geothermal power plant in Puga Valley.
  • Preparation of a Detailed Project Report (DPR) for commercial-scale geothermal development.
  • Deepening of the existing geothermal well to 1,000 metres.
  • Drilling of another 1,000-metre geothermal well in the next phase.
  • Testing and commissioning of the pilot plant expected during FY 2026–27.
  • Expansion of geothermal surveys and investigations to the Chumathang region under Phase II.
• The project site is located at an altitude of over 14,000 feet in eastern Ladakh.

Why is Puga Valley Suitable for Geothermal Power Generation?

Puga Valley and Chumathang lie within the Himalayan geothermal belt where tectonic plate collision generates intense underground heat. Several scientific studies have established the viability of geothermal power generation in the region:

• A geothermal well drilled to 405 metres in 2025 became the deepest geothermal well drilled in Ladakh.
• Geothermometric studies revealed subsurface temperatures above 240°C.
• Test wells generated high-pressure steam and geothermal fluids at shallow depths.
• Temperatures exceeding 200°C were observed at around 400 metres depth.

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About Geothermal Energy

Geothermal energy refers to the heat energy extracted from beneath the Earth’s crust. This heat originates from the Earth’s core and heats underground rocks and water reservoirs. The naturally occurring steam and hot fluids can be used to generate electricity or for direct heating purposes.

Unlike solar and wind energy, geothermal energy is available continuously throughout the year, making it a reliable source of baseload renewable power.

Major Types of Geothermal Power Plants

• Dry Steam Plant: Uses natural steam directly from underground reservoirs to run turbines.
• Flash Steam Plant: Uses high-pressure hot water that converts into steam when pressure is reduced.
• Binary Cycle Plant: Uses geothermal heat to warm a secondary fluid with a lower boiling point, which then drives the turbine. This technology is suitable for moderate-temperature geothermal resources.

India’s Geothermal Energy Potential

India possesses considerable geothermal potential due to its diverse geological and tectonic settings. The Geological Survey of India (GSI) has identified several geothermal provinces across the country.

Major Geothermal Provinces in India

• Himalayan Geothermal Province: This is India’s most promising geothermal region extending across Ladakh, Himachal Pradesh, and Uttarakhand. It lies along the collision zone of the Indian and Eurasian tectonic plates. Important geothermal sites include: Puga Valley, Chumathang, Manikaran, Tapovan and Badrinath. Temperatures in some areas exceed 240°C, making them suitable for electricity generation.
• Cambay Graben, Gujarat: Contains moderate-temperature geothermal reservoirs suitable mainly for direct-use applications.
• SONATA Lineament: The Son-Narmada-Tapi tectonic belt passes through Madhya Pradesh, Chhattisgarh, and Maharashtra and contains several geothermal springs.
• Godavari Basin: Located in Telangana and Andhra Pradesh with low-to-medium temperature geothermal resources.
• Mahanadi Basin: Located in Odisha and suitable mainly for heating and industrial applications.
• Andaman and Nicobar Islands: Part of a tectonically active volcanic arc with high geothermal gradients and strong future potential.

Significance of the Puga Thermal Power Project

• India’s First Geothermal Power Plant: The project marks the beginning of commercial geothermal energy development in India.
• Reliable Baseload Renewable Energy: Unlike solar and wind energy, geothermal power is available continuously and can provide stable electricity supply.
• Energy Security for Ladakh: Remote Himalayan regions face difficulties in conventional power supply. Geothermal energy can reduce dependence on diesel generators and imported fuels.
• Carbon Neutrality and Climate Goals: The project supports India’s renewable energy transition and aligns with the vision of making Ladakh a carbon-neutral region.
• Development of Renewable Energy Hub: Combined with solar energy projects, geothermal power can transform Ladakh into a major clean energy hub.