11 Pumped Storage Projects with 15,870 MW Capacity Under Construction, Centre Informs
In a written reply in the Rajya Sabha, Minister of State for Power Shripad Naik said the Centre has introduced a series of policy and regulatory measures to expedite environmental and statutory clearances and encourage investment in pumped storage projects, which are considered critical for integrating renewable energy into the power grid.
Among the projects under construction are the 3,000 MW Saidongar-I Karjat PSP in Maharashtra, the 2,000 MW Sharavathy PSP in Karnataka, the 1,920 MW Gandhi Sagar PSP in Madhya Pradesh, the 1,600 MW Saundatti PSP in Karnataka and multiple projects in Andhra Pradesh, Maharashtra and Tamil Nadu. These projects are scheduled for phased commissioning between 2026 and 2032.
The six projects that have received CEA concurrence or appraisal include the 1,800 MW Shirawta PSP and the 1,500 MW Pane PSP in Maharashtra, the 1,680 MW Kandhaura PSP and the 1,560 MW Chichlik PSP in Uttar Pradesh, the 600 MW Upper Indravati PSP in Odisha and the 1,000 MW Turga PSP in West Bengal.
To accelerate project implementation, the Ministry of Environment, Forest and Climate Change (MoEFCC) has introduced several reforms, including allowing eligible pumped storage projects to be appraised under the B2 environmental clearance category, issuing simplified Terms of Reference for off-stream projects, permitting surveys in forest areas for hydropower and pumped storage projects, and easing exploration requirements.
The CEA has also revised its guidelines for preparing and approving detailed project reports (DPRs), reducing the concurrence timeline from 90 days to 50 days. In addition, inter-state clearance is no longer required for pumped storage projects.
The government has further relaxed approval requirements by exempting off-stream closed-loop pumped storage schemes from mandatory CEA concurrence, irrespective of project cost. For other hydropower projects, the capital expenditure threshold requiring CEA concurrence has been increased to Rs 3,000 crore.
To promote greater private sector participation, the Ministry of Power has issued guidelines for pumped storage development, announced budgetary support for enabling infrastructure such as roads, bridges and transmission lines, and notified tariff-based competitive bidding (TBCB) guidelines for the procurement of storage capacity and stored energy from pumped storage plants.
The Central Electricity Regulatory Commission (CERC) has also approved a 100 per cent waiver of Inter-State Transmission System (ISTS) charges for pumped storage projects for 25 years from the date of commercial operation, provided construction contracts are awarded on or before June 30, 2028.
The ministry said pumped storage projects play a vital role in supporting renewable energy integration by storing surplus electricity during off-peak periods and supplying power during peak demand. They also provide long-duration energy storage and essential grid support services, including frequency regulation, voltage support and black-start capability, thereby improving grid stability and enabling higher penetration of renewable energy.
Published on:
21 July 2026
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