Parliament Question: Pumped Storage Projects

GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.3204 ANSWERED ON 06.08.2026 PUMPED STORAGE PROJECTS

3204. SHRI HASMUKHBHAI SOMABHAI PATEL:

SHRI VIVEK THAKUR:

Will the Minister of POWER

be pleased to state:

(a) the present status of Pumped Storage Projects (PSPs) under construction at various stages of approval across the country;

(b) the measures taken to facilitate timely environmental and statutory clearances for such projects;

(c) the role envisaged for Pumped Storage in integrating renewable energy and managing peak demand; and

(d) the steps taken to encourage greater participation of the private sector in the development of PSPs? A N S W E R THE MINISTER OF STATE IN THE MINISTRY OF POWER (SHRI SHRIPAD NAIK)

(a) : Presently, 11 PSPs with an aggregate installed capacity of 15,870 MW are under construction in the country (Annexure-I). Further, 6 PSPs with total installed capacity of 8,140 MW have been concurred/appraised by Central Electricity Authority (CEA) and are yet to be taken up for construction (Annexure- II), and 1 PSP with an installed capacity of 640 MW is under examination in CEA (Annexure-III).

(b) : The measures taken to facilitate timely environmental and statutory

clearances for such projects are as under:

(i) 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.

(ii) 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.

……..2.- 2 -

(iii) 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.

(iv) 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.

(v) 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 PSPs. Further, the clearance of Inter-State Aspects is not required for PSPs.

(vi) 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.

(c) : 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.

(d) : Central Government has taken a number of measures to encourage greater

private sector participation in the development of PSPs as listed below:

(i) Ministry of Power has notified Guidelines to promote development of Pumped Storage Projects in the country on 10.04.2023.

(ii) Budgetary Support towards Cost of Enabling Infrastructure, i.e., roads/bridges, railway sidings, ropeways, communication infrastructure and transmission line from power house to nearest pooling point.

(iii) 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.

(iv) 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 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.

**********ANNEXURE-I ANNEXURE REFERRED IN REPLY TO PART (a) OF UNSTARRED QUESTION NO.

3204 ANSWERED IN THE LOK SABHA ON 06.08.2026 ************* LIST OF PSPs IN UNDER CONSTRUCTION Sl. Name of the Project State / UT Capacity Target for No. (Executing Agency) (MW) 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) Tamil Nadu 500 Feb'27

(TANGEDCO) 4 MP30 Gandhi Sagar PSP Madhya Pradesh 1920 Dec'26 (Greenko MP01 IREP Private Limited) 5 Chitravathi PSP (Adani Andhra Pradesh 500 Feb'27 Renewable Energy Forty-Two Limited) 6 Bhivpuri PSP (Tata Power Maharashtra 1000 Feb'29 Company Limited) 7 Saundatti PSP (Greenko KA01 Karnataka 1600 Dec'27 IREP Private Limited) 8 Bhavali PSP (JSW Energy PSP Maharashtra 1500 Dec'28 Two Limited) 9 Gandikota PSP (Adani Andhra Pradesh 1000 Mar'29 Renewable Energy Fifty-One Limited) 10 Tarali PSP (Adani Renewable Maharashtra 1500 Jun'29 Energy One Limited) 11 Saidongar-1 Karjat PSP Maharashtra 3000 Dec'29 (Torrent Energy Storage Solutions) TOTAL 15,870 **************ANNEXURE-II ANNEXURE REFERRED IN REPLY TO PART (a) OF UNSTARRED QUESTION NO. 3204 ANSWERED IN THE LOK SABHA ON 06.08.2026 ************* List of PSPs concurred/ appraised by CEA and are yet to be taken up for construction Name of the project State/UT Capacity Date of Sl.

(Executing Agency) (MW) Concurrence/ No.

Appraisal Chichlik PSP* Uttar Pradesh 1560 08.07.2026 1 (Avaada Water Battery Pvt. Ltd.) 2 Pane PSP Maharashtra 1500 09.10.2025 (JSW Neo Energy Ltd) 3 Shirawta PSP (Tata 1800 01.09.2025 Power Company Ltd) Maharashtra 4 Kandhaura PSP Uttar 1680 13.06.2025 (JSW Energy PSP Six Ltd) Pradesh 5 Upper Indravati PSP (Odisha Odisha 600 19.08.2024 Hydro Power Corporation Ltd.) 6 Turga PSP West Bengal 1000 05.10.2016 (West Bengal State Electricity Distribution Company Ltd.) TOTAL 8,140 * Appraised ************ANNEXURE-III ANNEXURE REFERRED IN REPLY TO PART (a) OF UNSTARRED QUESTION NO. 3204 ANSWERED IN THE LOK SABHA ON 06.08.2026 ************* List of PSPs Under Examination in CEA Name of the project Capacity State/UT S. No. (Executing Agency) (MW) Indirasagar Omkareshwar Madhya Pradesh 640 1 (NHDC Limited) ***************