STATUS ON PUMPED STORAGE PROJECTS - 20th July 2026 - Ministry of Power - Gazette Notification PDF
Issued by Ministry of Power
Read or download the official PDF of this gazette notification issued by the Ministry of Power on 20th July 2026. Classified under Press Release.
Executive Summary & Key Takeaways
Executive Summary This report details the status of Pumped Storage Projects (PSPs) in India as of July 2026, highlighting 11 projects currently under construction (15,870 MW) and 6 awaiting construction (8,140 MW). It outlines significant regulatory reforms by the Ministry of Power, MoEF&CC, and CEA intended to streamline environmental clearances and provide financial incentives. A critical deadline is noted: construction must be awarded by June 30, 2028, to qualify for a 25-year waiver of Inter-State Transmission System (ISTS) charges.
Key Points / Main Content
Project Status and Capacity
- Active Projects: 11 PSPs are under construction with a total capacity of 15,870 MW; the largest is the Saidongar-1 Karjat PSP (3,000 MW) targeted for December 2029.
- Pending Projects: 6 PSPs totaling 8,140 MW have received CEA concurrence or appraisal but are yet to begin construction.
Environmental and Statutory Clearance Reforms
- Simplified Appraisals: PSPs can now be appraised under the B2 category subject to specific conditions.
- Baseline Data Requirements: Off-stream closed-loop PSPs require one season of baseline data (excluding monsoon), while off-stream open-loop PSPs require two seasons (pre- and post-monsoon).
- Forest Area Surveys: Provisions for mining project surveys have been extended to PSPs, including an enhanced number of boreholes for exploration.
Regulatory and Administrative Streamlining
- DPR Concurrence: The timeline for the Central Electricity Authority (CEA) to concur with Detailed Project Reports (DPR) has been reduced from 90 days to 50 days.
- Exemptions: PSPs no longer require clearance for Inter-State Aspects. Off-stream closed-loop schemes are exempt from CEA concurrence regardless of capital expenditure.
- CapEx Limits: The capital expenditure limit requiring CEA concurrence for other hydro schemes has been raised to ₹3,000 crore.
Financial Incentives and Private Participation
- Infrastructure Support: Budgetary support is provided for enabling infrastructure such as roads, bridges, transmission lines, and communication systems.
- ISTS Waiver: A 100% waiver of Inter-State Transmission System charges is available for 25 years for projects awarded on or before June 30, 2028.
- Competitive Bidding: New guidelines for tariff-based competitive bidding (TBCB) were notified in February 2025 to standardize the procurement of storage capacity.
Impact Analysis
Project Developers Impact Developers benefit from significantly reduced administrative timelines, lower exploration restrictions in forest areas, and major cost savings through infrastructure subsidies and transmission charge waivers. Action Required Developers must ensure construction contracts are awarded by June 30, 2028, to secure the ISTS waiver and adhere to the new seasonal baseline data collection requirements for environmental clearances.
Central Electricity Authority (CEA) Impact The CEA’s workload is redirected toward larger projects (above ₹3,000 crore) and technical guidance, as they are now exempt from overseeing Inter-State Aspects and closed-loop schemes. Action Required The CEA must adhere to the accelerated 50-day timeline for DPR concurrence and provide technical guidance for projects in the exempted category upon request.
State Power Utilities and Private Executing Agencies Impact Agencies (such as APGENCO, KPCL, and Tata Power) are responsible for meeting specific commissioning targets ranging from 2026 to 2032 to support grid stability and renewable energy integration. Action Required Executing agencies must align project timelines with the target commissioning dates specified in the status report (e.g., Gandhi Sagar PSP by Dec '26).