The Ladakh administration on Thursday affirmed that local stakeholders will be consulted before any decision on establishing a power corporation in the Union Territory, responding to growing opposition from socio-political and religious groups against perceived privatization of the electricity sector. Chief Secretary Ashish Kundra dismissed rumors of privatization as baseless and emphasized that any move would follow transparency and democratic consultation, particularly in a region bordering China and Pakistan.

The proposed structure involves a joint venture between the Ladakh Power Development Department (49%) and the Rural Electrification Corporation (51%), a model implemented in Jammu and Kashmir and other states under the Electricity Act, 2003. Kundra clarified that while the corporation would allow greater financial autonomy — including retaining user fees locally and purchasing power from spot markets — existing power department employees will remain government staff, with future hires under the corporation filled 90% by local residents.

Kundra also addressed environmental and cultural concerns, confirming no solar power projects are planned in the ecologically fragile Changtang region, home to pashmina herders. The administration will identify only barren, non-agricultural land for renewable energy installations. He reiterated that no decision will be taken that compromises Ladakh’s land, culture or employment practices.

The administration has invited dialogue with opposition groups, including the Leh Apex Body and Kargil Democratic Alliance, and pledged no unilateral actions. The court or relevant authorities will review the proposal further, with consultations expected to begin within the week.