Why Leh and Kargil bodies are opposing proposal to privatise power in Ladakh
Reasons cited by Apex Body Leh and the Kargil Democratic Alliance include employment, fear of rising bills, and national security.
The Apex Body Leh (LAB) and the Kargil Democratic Alliance (KDA) have objected to the Ladakh administration’s proposal to “privatise the power sector in the region”.
The twin bodies from Leh and Kargil, which have launched a joint struggle for Ladakh’s statehood and the sixth schedule, say that the proposal, if implemented, will worsen the unemployment problem, lead to an increase in power tariff, and compromise national and strategic security interests.
“(We) express our strong objection and grave concern regarding the proposed formation of a Joint Venture between the Ladakh Power Development Department (LPDD) (49%) and the Rural Electrification Corporation (REC) (51%) for the power sector in Ladakh,” reads the joint letter written by LAB and KDA to Lt Governor Vinai Kumar Saxena.
“Any such move, particularly in a sector as critical and sensitive as power, cannot and must not be undertaken without comprehensive public consultation and explicit safeguards for the people of Ladakh,” it reads.
While listing concerns about the proposed plan, the twin bodies say that it is also against the “national and strategic security interests” of the country.
“Ladakh is a strategically vital border region with immense national security significance. Power infrastructure here is not just an economic asset but a critical component of defence preparedness and civilian stability,” the letter reads. “Excessive reliance on profit-oriented or external entities in such a sensitive sector could compromise long-term strategic priorities. Retaining strong public control and oversight over power infrastructure is essential to safeguard national interests and ensure uninterrupted service in critical situations.”
The letter says that the “corporatisation” of the power sector would impact employment in the Ladakh region.”Ladakh is already facing rising unemployment among its youth since becoming a Union Territory, largely due to limited recruitment opportunities. The proposed model is likely to worsen this situation,” it reads. “Recruitment in entities like the Rural Electrification Corporation is conducted at the national level, often through the Graduate Aptitude Test in Engineering (GATE), without any preference for local candidates. As a result, Ladakhi youth are effectively excluded from technical and permanent roles.”
The letter adds, “There is no guaranteed mechanism for job creation based on Domicile Certificate or Ladakh Resident Certificate. In the absence of binding local hiring provisions, outside workforce is likely to be engaged.” It further says that the proposed plan will marginalise the local contractors.
Stating that any structural transformation in a strategically sensitive border region with unique geographical, climatic, and socio-economic realities must be undertaken with extreme caution, transparency, and full participation of the people, the letter says that it would also burden the people with higher power tariffs.
“Electricity in Ladakh is not merely a utility – it is a necessity for survival, particularly during harsh winters when reliable heating and energy supply are critical,” says the letter. “Any shift toward a profit-driven or commercially oriented model raises serious concerns about tariff escalation. Increased electricity costs would directly burden households, the tourism industry, and small businesses, all of which are already operating under challenging geographical and economic conditions.”
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The Apex Body Leh (LAB) and the Kargil Democratic Alliance (KDA) have objected to the Ladakh administration’s proposal to “privatise the power sector in the region”.
The twin bodies from Leh and Kargil, which have launched a joint struggle for Ladakh’s statehood and the sixth schedule, say that the proposal, if implemented, will worsen the unemployment problem, lead to an increase in power tariff, and compromise national and strategic security interests.
“(We) express our strong objection and grave concern regarding the proposed formation of a Joint Venture between the Ladakh Power Development Department (LPDD) (49%) and the Rural Electrification Corporation (REC) (51%) for the power sector in Ladakh,” reads the joint letter written by LAB and KDA to Lt Governor Vinai Kumar Saxena.
“Any such move, particularly in a sector as critical and sensitive as power, cannot and must not be undertaken without comprehensive public consultation and explicit safeguards for the people of Ladakh,” it reads.
While listing concerns about the proposed plan, the twin bodies say that it is also against the “national and strategic security interests” of the country.
“Ladakh is a strategically vital border region with immense national security significance. Power infrastructure here is not just an economic asset but a critical component of defence preparedness and civilian stability,” the letter reads. “Excessive reliance on profit-oriented or external entities in such a sensitive sector could compromise long-term strategic priorities. Retaining strong public control and oversight over power infrastructure is essential to safeguard national interests and ensure uninterrupted service in critical situations.”
The letter says that the “corporatisation” of the power sector would impact employment in the Ladakh region.”Ladakh is already facing rising unemployment among its youth since becoming a Union Territory, largely due to limited recruitment opportunities. The proposed model is likely to worsen this situation,” it reads. “Recruitment in entities like the Rural Electrification Corporation is conducted at the national level, often through the Graduate Aptitude Test in Engineering (GATE), without any preference for local candidates. As a result, Ladakhi youth are effectively excluded from technical and permanent roles.”
The letter adds, “There is no guaranteed mechanism for job creation based on Domicile Certificate or Ladakh Resident Certificate. In the absence of binding local hiring provisions, outside workforce is likely to be engaged.” It further says that the proposed plan will marginalise the local contractors.
Stating that any structural transformation in a strategically sensitive border region with unique geographical, climatic, and socio-economic realities must be undertaken with extreme caution, transparency, and full participation of the people, the letter says that it would also burden the people with higher power tariffs.
“Electricity in Ladakh is not merely a utility – it is a necessity for survival, particularly during harsh winters when reliable heating and energy supply are critical,” says the letter. “Any shift toward a profit-driven or commercially oriented model raises serious concerns about tariff escalation. Increased electricity costs would directly burden households, the tourism industry, and small businesses, all of which are already operating under challenging geographical and economic conditions.”
