With local socio-political-religious groups up in arms against power privatization in Ladakh, the Union Territory (UT) administration on Thursday (May 7, 2026) said local stakeholders will be involved in any decision to set up a power company in the region and assured that there are no plans to set up any solar power plant in the ecologically sensitive Changtang area.
“It is unfortunate that without seeking an explanation from the UT administration, baseless rumors of privatization of the power department are being spread in the region bordering China and Pakistan. We believe in dialogue and democratic process. Any step will be taken in a transparent manner and stakeholders will be on board,” said Ashish Kundra, chief secretary, Ladakh.
Mr. Kundra’s statement came in the wake of displeasure expressed by the Leh Apex Body (LAB) and the Kargil Democratic Alliance, an amalgam of socio-political and religious groups, over the proposed formation of a joint venture between the Ladakh Power Development Department (LPDD) (49%) and the Rural Electrification Corporation (51%) for the power sector in Ladakh.
However, Mr. Kundra clarified that setting up a corporation was a requirement under the Electricity Act, 2003. “It has already been done in J&K. Every state in the country has set up corporations. We need to see if we can set up corporations with companies that are already working in Ladakh like National Hydroelectric Power Corporation Limited (NHPC) or REC Power Development and Consultancy Limited, in which we are still ready to invest the best we are ready to do. Ladakh,” he said.
He said Ladakh was buying electricity from J&K at ₹10 per unit, the highest in the country. Ladakh must emphasize on revenue generation. Currently, the fee collected by the energy department goes to the Centre. However, the collection of fees will remain with the corporation for the future of the region in Ladakh,” he added.
He said the corporation will also have the flexibility to buy in the spot market of power exchanges. He also clarified that the current employees of the energy department will remain civil servants and only future recruitments will take place in the corporation. “Any new generation of workers will be 90% local,” he added.
Mr. Kundra expressed his willingness to hold a dialogue on the issue and said that the UT administration would not take any action to harm the interests of the land or culture of Ladakh.
While setting up the solar power plants, Mr. Kundra said there is no plan to disturb the Changtang area, which is home to pashmina goat herders. “We will not disturb the traditional employment regime. We will identify the land which is barren and where no agriculture is done for such plants,” he added.
Published – 08 May 2026 04:48 IST
