Facing opposition, Ladakh administration says ‘stakeholders will be onboard on setting up a power corporation’

With local socio-political-religious groups up in arms against privatisation of electricity in Ladakh, the Union Territory (UT) administration on Thursday (May 7, 2026) said local stakeholders will be onboard on any decision to set up a power corporation in the region and assured there were no plans to set up any solar power plant in the ecologically-sensitive area of Changtang. 

“It’s unfortunate that without seeking clarification from the UT administration that baseless rumours about privatisation of the electricity department are being spread in a region bordered by China and Pakistan. We believe in dialogue and democratic process. Any move will be made in a transparent way and stakeholders will be onboard,” said Ashish Kundra, Chief Secretary of Ladakh.

Mr. Kundra’s statement came in the wake of resentment shown by the Leh Apex Body (LAB) and the Kargil Democratic Alliance, amalgams 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.

Mr. Kundra, however, clarified that setting up a corporation was a requirement under the Electricity Act, 2003. “It has been done in J&K already. Every State in the country has set up corporations. We need to see if we can set up corporations with companies already working in Ladakh like National Hydroelectric Power Corporation Limited NHPC) or REC Power Development and Consultancy Limited and are ready to invest. We are still in the process of exploring what is the best for Ladakh,” he said.

He said Ladakh was buying electricity from J&K at ₹10 per unit, highest in the country. Ladakh needs to put thrust on revenue generation. At present, the fee collected by the power department goes to the Centre. However, with a corporation the fee collection will stay in Ladakh for the region’s future,” he added.

He said a corporation will also have a flexibility to buy from the spot market of the power exchange. He also clarified that the current employees of the power department will remain as government employees and only the future recruitments will be of the corporation. “Any new employment generation will be filled 90% by locals,” he added.

Expressing willingness to hold dialogue on the issue, Mr. Kundra said the UT administration will not take any measures that hurt the interests of Ladakh’s land or culture.

On setting up solar electricity plants, Mr. Kundra said there was no plan to disturb the Changtang region, which is home to pashmina goat herders. “We will not disturb the traditional employment mode. We will identify land that is barren and where no farming is done for such plants,” he added.