**Summary: Hydro Pumped Storage Project (PSP) Development Initiatives**
The Government of India, through the Ministry of Power, has undertaken several initiatives to promote the development of Hydro Pumped Storage Projects (PSPs). These initiatives include:
* **Financial Support:** Budgetary support is provided for enabling infrastructure costs, such as roads, bridges, communication infrastructure, and transmission lines.
* **Streamlined Guidelines:** The Ministry of Power issued guidelines in April 2023 to facilitate PSP development, addressing site allocation, exemptions, environmental clearances, and utilization of exhausted coal mines.
* **Transmission Charge Waiver:** Inter-State Transmission System (ISTS) charges are waived for PSPs awarded construction by June 30, 2028.
* **Expedited Project Approval:** The Central Electricity Authority (CEA) has revised guidelines, reducing the Detailed Project Report (DPR) concurrence timeline from 90 to 50 days.
* **Monitoring Portal:** The CEA has launched the Jal Vidyut DPR portal for real-time tracking of Survey and Investigation (SI) activities for hydro and pumped storage projects.
* **Transparent Procurement:** The Ministry of Power has notified Tariff-Based Competitive Bidding (TBCB) guidelines for procuring storage capacity from pumped storage plants, ensuring a fair and standardized procurement framework.
* **Environmental Appraisal:** The Ministry of Environment, Forest & Climate Change (MoEFCC) has categorized PSPs under the B2 category for environmental appraisal, subject to certain conditions (May 18, 2023). Specific Terms of Reference (TOR) have been issued for off-stream PSPs, prescribing baseline data collection requirements (August 14, 2023). Provisions for drilling investigations in forest areas have been extended to PSPs at par with mining activities (August 2024).
**Current Status (as of June 30, 2025):**
* **Commissioned:** 10 PSPs with a total installed capacity of 6.2 GW.
* **Under Construction:** 8 PSPs with a total capacity of 8.5 GW.
* **CEA Concurred:** 5 PSPs with a total capacity of 5.8 GW.
* **Survey/Investigation (DPR Preparation):** 46 PSPs with a total capacity of 64.8 GW.
This information was provided by the Minister of State for Power, Shri Shripad Yesso Naik, in a written reply in the Rajya Sabha. (Release ID: 2149363)
Key Entities Referenced
Ministry of Power: The Indian governmental ministry responsible for power generation and distribution.
Hydro Pumped Storage Projects (PSPs): A type of hydroelectric energy storage system.
Central Electricity Authority (CEA): Statutory body which advises the Government of India on policy matters and formulates efficient, economical and environment friendly development of the power system in the country
Inter State Transmission System (ISTS): The transmission system for transporting electricity between states in India.
Detailed Project Reports (DPR): Comprehensive reports outlining the technical and financial aspects of projects, required for approval and implementation.
Ministry of Environment, Forest Climate Change (MoEFCC): The Indian government ministry responsible for environmental protection and conservation.
Shri Shripad Yesso Naik: Minister of State for Power in the Government of India.
Rajya Sabha: The Upper House of the Parliament of India.
Ministry of Power
PROGRESS OF HYDRO PUMPED STORAGE
PROJECTS (PSP)
Posted On: 28 JUL 2025 5:38PM by PIB Delhi
The Government of India has taken various initiatives to promote development of hydro pumped storage
projects (PSPs), viz :-
i. Budgetary support towards cost of enabling infrastructure, i.e. roads, bridges, ropeways, railway siding,
communication infrastructure and transmission line from power house to the nearest pooling point,
including upgradation of pooling substations of State or Central Transmission Utility.
ii. The Ministry of Power in April, 2023 issued guidelines to promote development of PSPs. These
guidelines provide various methods of allotment of PSP sites, exemption from free power
obligation/Local Area Development Fund, rationalization of Environmental Clearance process and
utilization of exhausted coal mines etc.
iii. Waiver of Inter State Transmission System (ISTS) charges for PSPs for which construction work is
awarded on or before 30.06.2028.
iv. Central Electricity Authority (CEA) has published revised Guidelines for formulation and concurrence
of Detailed Project Reports (DPR) of PSPs. Under the revised guidelines, the timeline for concurrence
of DPR has been reduced from 90 days to 50 days for all type of PSPs.
v. CEA has launched the “Jal Vidyut DPR” portal for monitoring Survey and Investigation (S&I) activities
of HEPs and PSPs. The portal enables real-time tracking of workflows and pending tasks across
appraising agencies and developers, helping to identify and address delays effectively.
vi. To provide a transparent, fair, standardized procurement framework based on open competitive bidding
with appropriate risk-sharing between various stakeholders, Ministry of Power has notified TBCB
guidelines for procurement of storage capacity/ stored energy from pumped storage plants.
vii. Ministry of Environment, Forest & Climate Change (MoEF&CC), on 18.05.2023, has notified to
appraise PSPs under B2 category subject to certain conditions.
viii. The MoEF&CC, on 14.08.2023, issued specific TOR for the proposals involving off steam PSPs
wherein collection of baseline data for one season (other than monsoon) is prescribed for off steam
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, in August 2024, has allowed the provisions for drilling investigations in forest area
extended to PSPs at par with mining activities.As on 30.06.2025, the status of hydro pumped storage projects (PSPs) is as under:
i. 10 number of PSPs with aggregate installed capacity of 6.2 GW have been commissioned.
ii. 8 number of PSPs with aggregate capacity of 8.5 GW are under construction.
iii. 5 number of PSPs with aggregate capacity of 5.8 GW have been concurred by CEA.
iv. 46 number of PSPs with aggregate capacity of 64.8 GW are under Survey & Investigation for
preparation of DPRs.
This information was given by the Minister of State for Power, Shri Shripad Yesso Naik, in a written reply in
the Rajya Sabha today.
*****
SK
(Release ID: 2149363)