The Puga valley lies at a distance of about 22 km to the east of the Salt Lake Valley across the Polokonka La pass (5,350 m). It is well-known for its borax and sulphur deposits and hot water springs. The deposits, however, are of little commercial value at present due to the inaccessibility of this valley and the short working season. Hundreds of people suffering from sickness like rheumatism and skin diseases come for a bath in the hot water springs of the Puga Valley.

This charming valley is famous for its hot water springs. People from far and near come here to take bath in these springs, which are believed to cure many bone and joint ailments and skin diseases. This valley also has borax and sulphur deposits, which are of little commercial value at present due to the inaccessibility of this valley and the short working season.