ONGC Completes Two Deep Geothermal Wells at Puga, Advancing India’s First Demonstration-Scale Geothermal Power Project

What Happened ?

key details

Project Milestone:

• Successfully completed GT#02 and GT#03 deep geothermal wells.
• Marks a major milestone for India’s first demonstration-scale geothermal power project.
• Project located at Puga, Ladakh.
• Commemorative plaque unveiled by the Hon’ble Lieutenant Governor of Ladakh. 

Strategic Importance:

The Puga project is expected to:

• Provide reliable round-the-clock renewable energy.
• Improve electricity access in remote Himalayan regions.
• Reduce dependence on conventional fossil fuels.
• Enhance power reliability during extreme winter conditions.
• Diversify India’s renewable energy portfolio.

Broader Applications:

Beyond electricity generation, geothermal energy from the project has the potential to support:

• Space heating.
• Greenhouse cultivation.
• Year-round agriculture.
• Food processing.
• Geotourism.
• Sustainable livelihood development.

These applications could contribute significantly to Ladakh’s socio-economic development and its aspiration to become a carbon-neutral region. 

Collaborative Framework:

The project is being implemented jointly by:

• ONGC Energy Centre.
• Union Territory Administration of Ladakh.
• Ladakh Autonomous Hill Development Council (LAHDC-Leh).

The collaboration operates under a five-year partnership renewed in June 2026. 

National Significance:

The geothermal initiative supports:

• India’s clean energy transition.
• Greater technological self-reliance.
• Long-term energy security.
• National Net Zero objectives.
• Development of indigenous geothermal capabilities.

Risk Analysis

Summary:

• The completion of the geothermal wells represents a significant project milestone; however, the long-term success of the initiative will depend on demonstration-scale power generation, operational performance and future commercialization.

Key Risks:

• Commercial viability will be established only after successful demonstration-scale operations.
• Geothermal resource performance must meet long-term operational expectations.
• Additional infrastructure and system integration may be required before full-scale deployment.
• Project timelines could be influenced by technical and environmental factors associated with geothermal development.

Worst Case:

• If the demonstration project fails to achieve targeted operational performance or commercial scalability, broader deployment of geothermal energy in India could be delayed.

Risk Level: Medium

Company Commentary

• ONGC stated that the completion of GT#02 and GT#03 reaffirms its commitment to innovation, energy security and sustainable energy development.
  
• Director (Technology and Field Services) Shri Vikram Saxena said the milestone demonstrates ONGC’s continued focus on advancing clean-energy technologies while supporting Ladakh’s sustainable development and India’s long-term Net Zero goals.
  
• The Hon’ble Lieutenant Governor of Ladakh also highlighted the project’s national and regional importance and commended the ONGC Energy Centre team for achieving the milestone.