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GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.2030
ANSWERED ON 30.07.2026
SETTING UP OF PUMPED STORAGE PROJECTS IN MADHYA PRADESH
†2030. SHRI BUNTY VIVEK SAHU:
Will the Minister of POWER
be pleased to state:
(a) whether the Government has made any assessment of the possibilities of
setting up of Pumped Storage Projects (PSPs) in the Chhindwara district of
Madhya Pradesh for the integration of renewable energy and management of
peak electricity demand keeping in view its geographical suitability and if so,
the details thereof;
(b) whether any special positive steps are taken in collaboration with the private
and public sectors to encourage the establishment of such projects to promote
green energy through proper utilization of water resources in the district and if
so, the details thereof; and
(c) the budgetary or technical assistance being provided by the Government for
the speedy implementation of proposed PSPs in the State including
Chhindwara?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a): As per information available in Central Electricity Authority (CEA), one
Pumped Storage Project (PSP) namely Satpura-2 with installed capacity of 1000
MW has been identified in Chhindwara, Madhya Pradesh.
(b): The Government has taken several policy measures to promote the
development of Pumped Storage Projects (PSPs) across the country, including
in Madhya Pradesh, through participation of Central and State Public Sector
Undertakings as well as private developers. These measures include:
(i) Ministry of Power has notified guidelines to promote development of
Pumped Storage Projects in the country on 10.04.2023.
(ii) 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.
(iii) 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.(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 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.
(v) 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.
(vi) 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 PSPs. Further, the clearance of Inter-State
Aspects is not required for PSPs.
(vii) 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.
(viii) 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.
(ix) 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.
(x) 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.
(c) : The Government facilitates the timely implementation of Pumped Storage
Projects (PSPs), including those in Madhya Pradesh, by providing technical
support through the Central Electricity Authority (CEA), including appraisal of
Detailed Project Reports (DPRs), issuance of technical guidelines and
monitoring of project implementation. In addition, the Government provides
Budgetary Support, under the Scheme, to eligible PSPs towards the cost of
enabling infrastructure, including roads and bridges, railway sidings, ropeways,
communication infrastructure, and the transmission line from the powerhouse
to the nearest pooling point.
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