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Ladakh Admin Denies Power Privatisation Rumours

  • Umar Raina
  • Comments 0
  • 08 May 2026

Leh, May 7:- Chief Secretary of Ladakh, Ashish Kundra on Wednesday strongly refuted rumours regarding the alleged privatization of the Power Department in Ladakh calling the reports baseless propaganda spread without verification.

 

Addressing a press conference in Leh, Kundra said several organizations in Leh and Kargil had created unnecessary confusion among the public by claiming that the administration was planning to privatize the power sector. He expressed regret that such claims were circulated without seeking clarification from the administration.

 

Kundra clarified that discussions were only at a preliminary stage regarding the possible formation of a power corporation under provisions of the Electricity Act, similar to models already functioning in other parts of the country including Jammu & Kashmir.

 

 

He explained that two options were being explored either creating Ladakh’s own power corporation or forming a joint venture with central public sector undertakings such as REC PDCL and Power Grid Corporation. According to him the purpose of these discussions is to improve infrastructure, attract investment, reduce power purchase costs, and strengthen electricity distribution across Ladakh.

 

The Chief Secretary stated that currently Ladakh purchases electricity at nearly Rs 10 per unit from Jammu & Kashmir whereas power through the exchange market could be procured at significantly lower rates. He added that forming a corporation could help Ladakh retain its own power revenues for infrastructure development instead of sending collections directly to the central pool.

 

Kundra assured employees that no existing government staff would lose their jobs or benefits if a corporation is formed. He said all present employees would continue as government employees on deemed deputation, with salaries and pensions protected by the administration.

 

He further said that future recruitments under any proposed corporation would prioritize locals adding that around 90 percent of new appointments would be reserved for Ladakh residents under existing recruitment rules.

 

The Chief Secretary emphasized that no memorandum of understanding (MoU) has been signed so far and even draft documents received from REC PDCL were yet to be examined by the administration. He accused some groups of creating panic by portraying the proposal as a finalized privatization move.

 

Kundra also said the administration would never take any decision harmful to the people, land, or culture of Ladakh. He urged the public and employee unions not to fall for rumours and instead approach the administration directly for clarification.

 

Speaking on the region’s growing energy demands, especially during winters, Kundra noted that Ladakh’s current hydro generation capacity drops significantly during colder months while electricity consumption rises sharply due to heating requirements. He said additional investment is necessary for transmission lines, substations renewable energy projects, and improved power infrastructure in remote areas.

 

The press conference was also attended by senior officials of the Power Development Department, who reiterated that discussions remain at an exploratory stage and no final decision has been taken regarding the proposed corporation.

 

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