Rajya Sabha updated on Pumped Storage Projects
Six Pumped Storage Projects (PSPs) with an aggregate installed capacity of 8,140 MW have been concurred and appraised by the Central Electricity Authority (CEA) and are yet to be taken up for construction, the Minister of State in the Ministry of Power, Shripad Naik, said in a written reply to the Rajya Sabha on 20 July.
Eleven PSPs with an aggregate installed capacity of 15,870 MW are under construction, he told the House, adding that measures have been taken in respect of timely environmental and statutory clearances for PSPs.
The measures for PSPs include:
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.
The MoEF&CC on 14 Aug 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.
The MOEF&CC on 20 Aug 2024, has extended the provisions relating to survey in the forest areas for mining projects to other development projects including hydel/PSPs.
MOEF&CC vide letter dated 10 Sept 2025 has enhanced the number of boreholes for undertaking survey and explorations in the forest area for mining and developmental projects including hydel / PSPs.
The 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 all type of PSPs. Further, the clearance of Inter-State Aspects is not required for PSPs.
The Government, vide Gazette notification dated 1 Aug 2025, has revised the capital expenditure limit for schemes related to setting up hydro generating stations to Rs.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. However, Developers may seek technical guidance from the CEA for projects under exempted category.
The PSPs support the integration of renewable energy 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 such as frequency regulation, voltage support and black start capability, thereby supporting grid stability, reliability and higher renewable energy penetration. Fiinews.com
