Odisha Clears 600 MW Upper Indravati Pumped Storage Project

The Odisha Cabinet has approved a total investment of INR 4,708.64 crore for the development of the 600 MW Upper Indravati Pumped Storage Project (PSP) at Ranibahal in Kalahandi district, marking a major step towards expanding the state's energy storage infrastructure.

The approval was granted at a Cabinet meeting chaired by Chief Minister Mohan Charan Majhi. The project is targeted for commissioning in the financial year 2030-31 and is expected to strengthen grid stability and improve the integration of renewable energy into Odisha's electricity network.

Chief Secretary Anu Garg said that the project would involve a total expenditure of INR 4,708.64 crore, including INR 3,371.88 crore towards construction. Megha Engineering & Infrastructures Ltd. (MEIL) has been selected for executing the project.

The Odisha Hydro Power Corporation Ltd. (OHPC) will implement the project. The overall project cost also covers expenditure on consultancy, land acquisition, forest clearances and interest during construction.

The project will have an installed capacity of 600 MW, comprising four units of 150 MW each. According to OHPC's project details, it is expected to generate approximately 1,040 million units (MU) of electricity annually during peak-demand periods, while requiring around 1,283 MU of electricity annually for pumping operations.

The proposed facility will use the existing Upper Indravati reservoir as its upper reservoir, while a new lower reservoir and an underground powerhouse will be developed. The project will require approximately 151.916 hectares of land.

The project is designed to function as a grid-scale energy storage facility by using surplus electricity available during off-peak hours to pump water from the lower reservoir to the upper reservoir. When electricity demand increases, the stored water will be released to generate power through turbines.

This operating arrangement will enable the state to store electricity when demand is relatively low and supply it during peak consumption periods. The facility is also expected to provide operational flexibility to the electricity grid through frequency response, load management, spinning reserves and black-start capabilities.

The project will be financed through an 80:20 debt-equity structure. OHPC will contribute 20 percent equity from its internal reserves in phases, while the remaining 80 percent will be financed through phased loans from the state government at an interest rate linked to the Reserve Bank of India's repo rate.

The development comes as Odisha looks to expand its energy storage capacity to support the increasing deployment of renewable energy sources. Pumped storage projects can help address fluctuations in solar and wind generation by shifting electricity availability from periods of surplus generation to periods of higher demand.

With the Upper Indravati project, Odisha is moving towards establishing large-scale storage infrastructure to support power supply reliability and the integration of renewable energy into its electricity system.