The Puga Project is an advanced low-risk project in the Puga Valley in northern India, 140 kilometres from the tourist town Leh which is the capital of the Himalayas. The project will be developed in a joint venture between Panax and Geosyndicate Power Private to supply power to the town of Leh.

The 60 megawatt project, which will be developed in stages, is part of the Himalayan geothermal province, a belt of high-heat flows which extends east into Tibet.

A United Nations Development Programme in the mid 1970s identified a large shallow geothermal reservoir less than 400 metres below the surface with temperatures exceeding 140°C. Panax and Geosyndicate Power Private are targeting a deeper geothermal reservoir at a depth of about 2,000 metres with temperatures exceeding 260°C. This high-quality reservoir was identified in a survey conducted by the National Geophysical Research Institute of India.

Leh relies on diesel power which is costly, unreliable and does not meet local electricity demand. A 100 kilometre transmission line is being constructed from Puga to Leh. This would significantly benefit the Puga Project, bringing it within 30 kilometres of a transmission line.

Financial analysis shows this project is commercially robust with attractive internal rates of return, without accounting for carbon benefits. Power would be sold at US$110 per megawatt hour.

Location Himalayan region, northern India
Equity 49% - Panax as Operator
Key features
  • 60 megawatt project
  • High geothermal gradients and temperatures in extreme high heat flow zone
  • Commercially attractive power tariffs of US$110 per megawatt hour
  • Geothermal field close to transmission line
  • Good local infrastructure

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