The Odisha Hydro Power Corporation has awarded a letter of intent to Megha Engineering & Infrastructures Ltd for construction of the 600 megawatt (MW) Upper Indravati Pumped Storage Project at Ranibahal in Kalahandi district. The project, estimated at around Rs 31.6 billion (bn), received final approval from the Central Electricity Authority in August 2024 and the LoI covers the engineering, procurement and construction contract to begin on-site development. The facility is targeted for commissioning by 2030.

Designed as a four-unit pumped storage facility, it will have four generating units of 150 MW each and an underground powerhouse housing four reversible pump-turbines. The layout includes an underground transformer hall, step-up transformers and a gas-insulated switchyard to manage transmission interfaces. The reversible turbine technology will enable the project to store surplus electricity during off-peak hours and to generate power during periods of high demand, thereby enhancing grid stability.

The Upper Indravati PSP is one of three major pumped storage projects being developed by OHPC with a combined planned capacity of 1,700 MW; the other two projects are the 500 MW Balimela PSP and the 600 MW Upper Kolab PSP at Bariniput. The Energy department has said the project has a target to generate 918.97 million units (mn) of electricity per year. An environmental impact study by WAPCOS Ltd, a central government undertaking, indicates the scheme will require around 151.93 hectare of land, comprising 107.6 hectare of forest land and 44.33 hectare of non-forest land, including government and private holdings.

Officials said the project is expected to play a critical role in improving grid flexibility as the state scales up renewable energy capacity. Pumped storage plants are increasingly being viewed as essential infrastructure for balancing intermittent solar and wind generation by storing excess power and supplying it during peak demand. The Energy department described the Upper Indravati PSP as a landmark initiative that will strengthen Odisha's clean energy ecosystem, improve power reliability and support the state's long-term transition towards a sustainable and resilient electricity system.