Puga valley, a place located at 14,000 feet above sea level in southeastern Ladakh’s Chanthang is known for its hot springs and underground heat reserves. This place is completely redefining the geothermal story of the country.
In July 2026, the ONGC Energy Centre commissioned the country’s first two geothermal wells in the Puga valley. For a nation of 1.4 billion people that has long looked to the sun and wind for its renewable ambitions, the heat of the Earth itself is now entering daily conversations.
The two wells, each 1,000 metres deep, will support reservoir evaluation. They also pave the way for India’s first one-megawatt demonstration geothermal power project, marking the country’s entry into geothermal power generation.
Though the scale is modest, what it implies is more important.
The concept of Geothermal Energy
India is moving from resource assessment to field demonstration, and Puga valley is where that shift becomes visible.
Geothermal energy is steady, low-carbon and not affected by weather. Unlike solar and wind, it is available throughout the year.
This matters for a large, densely populated country that wants to add reliable, home-grown sources to its renewable energy mix. That is why regions like Ladakh, Himachal Pradesh and Chhattisgarh become important.
Science states why the Earth’s interior is hot because it is driven by the radioactive decay of elements like “uranium, thorium and potassium”, along with residual heat from the planet’s formation. In geologically active regions, faults and fractures let hot material travel closer to the surface, creating reservoirs of hot water and steam trapped within permeable rock.
Deep wells bring these resources up. The steam drives a turbine connected to a generator, a process resembling conventional thermal power, except that naturally occurring underground heat replaces fuel combustion. The used water is condensed and reinjected into the reservoir, supporting replenishment and continued production.
Importance of Puga
What makes Ladakh’s milestone critical is the policy framework behind it.
In September 2025, the government notified the National Policy on Geothermal Energy. The policy aims to establish geothermal energy as a major renewable pillar enabling systematic exploration and deployment of the country’s resources.
While prioritising research, drilling, reservoir management and direct-use applications, and supports Ground Source Heat Pumps for heating and cooling.
A clear regulatory framework encourages both public and private sector participation. It facilitates repurposing abandoned oil and gas wells, builds toward a national geothermal data repository, and supports pilot projects and Centres of Excellence.
Alongside this, MNRE is implementing the Renewable Energy Research and Technology Development Programme through research institutions and industry partners, aiming at indigenous, cost-effective technologies.
Internationally, geothermal energy has been identified as a key area of cooperation with Australia and Iceland, and as a focus area in an MoU with the Kingdom of Saudi Arabia.
The Future
The Geological Survey of India has mapped 381 hot springs and identified 10 geothermal provinces, from the Himalayan province to the Andaman and Nicobar Islands, the West Coast and the South Indian Cratonic regions.
India’s theoretical geothermal prospect stands at nearly 10.6 GW, and 42 sites have been recognised as promising for power generation and direct heat use.
Technology could widen this further. Enhanced Geothermal Systems and Advanced Geothermal Systems will expand exploration opportunities, so suitable projects can arise anywhere geothermal resources exist. Inactive oil and gas wells could be repurposed, subject to technical and operational feasibility, building on existing drilling expertise, well data and infrastructure.
Beyond electricity, geothermal heat supports district heating, agriculture, aquaculture, and space heating and cooling. Possibilities include geo-tourism too. For a high-altitude region like Ladakh, such direct uses are worth watching closely.
Other projects are already adding experience. Gujarat’s Gandhinagar has demonstrated electricity generation of 50 to 90 kilowatts from fluid at 70 to 80°C.
Ankleshwar in Gujarat is evaluating retrofitted oil and gas wells, Tawang in Anuranchal Pradesh is studying five geothermal sites, Hyderabad is developing a geothermal cooling system, and a pilot study is modelling shallow systems with Borehole Heat Exchangers.
An honest account must note that commercial-scale power generation is yet to be established. What exists today is a foundation: expanding well fields, demonstration activities and research initiatives strengthening the ecosystem.
The world offers proof of concept, with global installed capacity reaching 15.67 GW by the end of 2025, led by Indonesia, the US, the Philippines, Türkiye and New Zealand, together holding around 67%. India, by comparison, is only at the starting line.
The government’s larger purpose is clear. India is driving towards Net Zero by 2070, and the policy seeks to make geothermal energy a key part of the nation’s renewable energy story.
The aim is energy security and sustainable growth, through a steady, indigenous pillar of the energy transition.
From the cold, thin air of Puga Valley, that aim feels both distant and tangible. The wells are only 1,000 metres deep, and the demonstration plant is only one megawatt. But every large energy system begins with a first well.
If policy, research, partnerships and patient field work continue to align, the heat beneath Ladakh may help power the journey to 2070.
COURTESY – PIB SRINAGAR
