Presently, 11 Pumped Storage Projects (PSPs) with an aggregate installed capacity of 15,870 MW are under construction Table- I. In addition, 6 PSPs with an aggregate installed capacity of 8,140 MW have been concurred/appraised by the Central Electricity Authority (CEA) and are yet to be taken up for construction Table-II.

The measures taken in respect of timely environmental and statutory clearances for Pumped Storage Projects (PSPs) include:

1. Ministry of Environment, Forest & Climate Change (MoEF&CC), vide its notification dated 18.05.2023, has enabled appraisal of PSPs under B2 category subject to certain conditions.

2. The MoEF&CC on 14.08.2023, has issued specific Terms of Reference (TOR) for the proposals involving off stream PSPs wherein collection of baseline data for one season (other than monsoon) is prescribed for off stream closed loop PSPs and collection of baseline data for two seasons (pre-monsoon & post-monsoon) is prescribed for off stream open loop PSPs.
3. The MOEF&CC on 20.08.2024, has extended the provisions relating to survey in the forest areas for mining projects to other development projects including hydel/PSPs.

4. MOEF&CC vide letter dated 10.09.2025 has enhanced the number of boreholes for undertaking survey and explorations in the forest area for mining and developmental projects including hydel / PSPs.
5. Central Electricity Authority (CEA) has revised Guidelines for formulation and concurrence of Detailed Project Report (DPR) of PSPs. Under the revised guidelines, the timeline for concurrence of DPR has been reduced from 90 days to 50 days for all type of PSPs. Further, the clearance of Inter-State Aspects is not required for PSPs.
6. The Government of India, vide Gazette notification dated 01.08.2025, has revised the capital expenditure limit for schemes related to setting up hydro generating stations to ₹3,000 crore, requiring the concurrence of the CEA. Further, the Government has exempted off-stream closed-loop pumped storage schemes, irrespective of the quantum of capital expenditure, from the requirement of concurrence by the CEA. However, Developers may seek technical guidance from the CEA for projects under exempted category.

Pumped Storage Projects (PSPs) support the integration of renewable energy by storing surplus energy during off-peak periods and supplying power during peak demand. They provide long-duration energy storage, balancing power and ancillary grid services such as frequency regulation, voltage support and black start capability, thereby supporting grid stability, reliability and higher renewable energy penetration.

Central Government has taken a number of measures to encourage greater private sector participation in the development of PSPs as listed below:

1. Ministry of Power has notified Guidelines to promote development of Pumped    Storage Projects in the country on 10.04.2023.
2. Budgetary Support to Cost of Enabling Infrastructure, i.e., roads/bridges, railway sidings, ropeways, communication infrastructure and transmission line from power house to nearest pooling point.
3. To provide a transparent, fair, standardized procurement framework based on open competitive bidding with appropriate risk-sharing between various stakeholders, MoP vide Gazette notification dated 06.02.2025, has notified tariff based competitive bidding (TBCB) guidelines for procurement of storage capacity/stored energy from pumped storage plants.

4. The Central Electricity Regulatory Commission (CERC), vide its Notification dated 26.06.2025, has provided for 100% waiver of Inter-State Transmission System (ISTS) charges for Pumped Storage Projects (PSPs) for a period of 25 years from the Commercial Operation Date (COD), in respect of projects for which the construction work is awarded on or before 30.06.2028.

TABLE-I

LIST OF UNDER CONTRUCTION PUMPED STORAGE PROJECTS

Sl.No.	Name of the Project (Executing Agency)	State/UT	Capacity (MW)	Target for Commissioning
1	Upper Sileru PSP (APGENCO)	Andhra Pradesh	1350	Feb'29
2	Sharavathy PSP (KPCL)	Karnataka	2000	May'32
3	Kundah PSP (Phase-I,II&III) (TANGEDCO)	Tamil Nadu	500	Feb’27
4	MP30GandhiSagarPSP(Greenko MP01 IREP Private Limited)	Madhya Pradesh	1920	Dec'26
5	Chitravathi PSP (Adani Renewable Energy Forty-Two Limited)	Andhra Pradesh	500	Feb'27
6	Bhivpuri PSP (Tata Power Company Limited)	Maharashtra	1000	Feb'29
7	Saundatti PSP(GreenkoKA01IREPPrivateLimited)	Karnataka	1600	Dec'27
8	BhavaliPSP(JSW Energy PSP Two Limited)	Maharashtra	1500	Dec'28
9	Gandikota PSP(Adani Renewable Energy Fifty-One Limited)	Andhra Pradesh	1000	Mar'29
10	Tarali PSP(Adani Renewable Energy One Limited)	Maharashtra	1500	Jun'29
11	Saidongar-1KarjatPSP (Torrent Energy Storage Solutions)	Maharashtra	3000	Dec'29
		TOTAL	15,870

 

TABLE-II

LIST OF  PSP SCONCURRED/APPRAISED BY CEA AND ARE YET TO BE TAKEN UP FOR CONSTRUCTION

Sl.No.	Name of the project (Executing Agency)	State/UT	Capacity (MW)	Date of Concurrence/ Appraisal
1	ChichlikPSP*  (Avaada Water Battery Pvt.Ltd.)	Uttar Pradesh	1560	08.07.2026
2	Pane PSP (JSW Neo Energy Ltd)	Maharashtra	1500	09.10.2025
3	Shirawta PSP (TataPower Company Ltd)	Maharashtra	1800	01.09.2025
4	Kandhaura PSP (JSWEnergyPSPSix Ltd)	Uttar Pradesh	1680	13.06.2025
5	Upper Indravati PSP (Odisha Hydro Power Corporation Ltd.)	Odisha	600	19.08.2024
6	Turga PSP (West Bengal State Electricity Distribution Company Ltd.)	West Bengal	1000	05.10.2016
		TOTAL	8,140

*Appraised

This information was given by The Minister of State in the Ministry of Power, Shri Shripad Naik, in a written reply in the Rajya Sabha today.

 

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