Status on Pumped Storage Projects in India
The Ministry of Power provided a comprehensive update on the status of Pumped Storage Projects (PSPs) in India, detailing both under-construction and approved projects along with significant regulatory measures implemented to facilitate their development.
Project Implementation Status
Currently, 11 PSPs with an aggregate installed capacity of 15,870 MW are under construction across various states. The largest project is the 3,000 MW Saidongar-1 Karjat PSP in Maharashtra being developed by Torrent Energy Storage Solutions, targeting commissioning in December 2029. Other major projects include the 2,000 MW Sharavathy PSP in Karnataka (KPCL) targeting May 2032, and the 1,920 MW MP30 GandhiSagar PSP in Madhya Pradesh (Greenko MP01 IREP Private Limited) targeting December 2026. Multiple projects are concentrated in Maharashtra and Andhra Pradesh, with commissioning timelines spanning from February 2027 to May 2032.
Additionally, 6 PSPs with a total capacity of 8,140 MW have been concurred or appraised by the Central Electricity Authority (CEA) but are yet to commence construction. These include the 1,560 MW Chichlik PSP in Uttar Pradesh (Avaada Water Battery Pvt. Ltd.) appraised on July 8, 2026, and the 1,800 MW Shirawta PSP in Maharashtra (Tata Power Company Ltd) concurred on September 1, 2025. The oldest project in this category is the 1,000 MW Turga PSP in West Bengal (West Bengal State Electricity Distribution Company Ltd.) which received concurrence back on October 5, 2016.
Regulatory Streamlining Measures
The government has implemented multiple measures to expedite environmental and statutory clearances for PSPs. The Ministry of Environment, Forest & Climate Change enabled appraisal of PSPs under B2 category subject to certain conditions through its notification dated May 18, 2023. Specific Terms of Reference were issued on August 14, 2023, prescribing baseline data collection requirements: one season (other than monsoon) for off-stream closed-loop PSPs and two seasons (pre-monsoon & post-monsoon) for off-stream open loop PSPs.
Further facilitations include extended provisions for survey in forest areas for developmental projects including hydel/PSPs (August 20, 2024) and enhanced number of boreholes for undertaking survey and explorations in forest areas (September 10, 2025). The CEA has revised Guidelines for formulation and concurrence of Detailed Project Reports, reducing the timeline for concurrence from 90 days to 50 days for all types of PSPs and eliminating the requirement for Inter-State Aspects clearance.
Financial and Incentive Framework
The Government of India revised the capital expenditure limit for schemes related to setting up hydro generating stations to ₹3,000 crore, requiring CEA concurrence, through a Gazette notification dated August 1, 2025. Notably, off-stream closed-loop pumped storage schemes have been exempted from CEA concurrence requirements irrespective of capital expenditure, though developers may seek technical guidance from CEA for exempted projects.
To encourage private sector participation, the Ministry of Power notified Guidelines to promote PSP development on April 10, 2023, which includes budgetary support for enabling infrastructure such as roads/bridges, railway sidings, ropeways, communication infrastructure and transmission lines. Tariff based competitive bidding guidelines for procurement of storage capacity/stored energy from PSPs were notified on February 6, 2025. Additionally, CERC provided 100% waiver of Inter-State Transmission System charges for PSPs for 25 years from Commercial Operation Date for projects awarded on or before June 30, 2028.
Functional Role of PSPs
Pumped Storage Projects support renewable energy integration 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 including frequency regulation, voltage support and black start capability, thereby supporting grid stability, reliability and higher renewable energy penetration.