Odisha Unveils Policy to Attract Investment in Pumped Storage
POWER & RENEWABLE ENERGY

Odisha Unveils Policy to Attract Investment in Pumped Storage

The Odisha government, after identifying 45 potential sites for Pumped Storage Projects (PSPs) earlier this year, has introduced a policy framework to monitor and regulate PSPs in the state. The policy is designed to attract investment from public and private developers and aligns with the PSP Policy 2025 and the Renewable Energy Policy 2022.
The Energy Department’s latest Operational Guidelines to Odisha PSP Policy identify potential locations for off-the-river closed-loop PSPs. With many sites still unregistered or unsurveyed by state and central agencies, and with the growing importance of long-duration energy storage, private developers have approached the state for site allocations. The government has now decided to allocate some sites to developers while safeguarding state interests.
The guidelines apply to all developers, including Central Public Sector Undertakings (CPSUs), State Public Sector Undertakings (SPSUs), private developers, joint ventures of CPSUs/SPSUs, government departments, and the nodal agency involved in PSP development.
The policy highlights that “discarded mines, including coal mines in Odisha, could serve as hydro storage sites, acting as natural enablers for PSP development.” The state will collaborate with the Ministry of Coal, Ministry of Mines, and respective state governments to identify and develop exhausted mines as prospective PSP sites.

Under the new framework, private developers can propose off-stream PSP projects. Key responsibilities include:
  • Developers: Identify sites not already registered as state-identified projects by the nodal agency.
  • Nodal Agency: Notify the opening of the window for receiving applications for self-identified off-stream PSPs, one month after publication of the guidelines. The initial window will last three weeks, extendable with government approval.
  • State and Central PSUs: Continue to identify feasible sites and undertake pre-feasibility assessments for notification as state-identified projects.
State-identified projects may be allocated on a nomination basis or through a Memorandum of Understanding (MoU) to CPSUs, SPSUs, or joint ventures, following evaluation of technical and financial capabilities.
All PSPs will be developed under a Build-Own-Operate-Transfer (BOOT) model. The initial concession period is 40 years, extendable by up to 30 years with state government approval. Upon completion, project assets will transfer to the state or a designated SPSU free of encumbrances. For captive PSPs, the transfer does not apply as long as the project maintains Captive Generating Plant (CGP) status.
Financial requirements mandate that developers have a minimum net worth of 20 per cent of the estimated project cost and submit audited accounts for the past five years. Proposals are invited from SPSUs, CPSUs, joint ventures, and private developers to develop these projects.

The Odisha government, after identifying 45 potential sites for Pumped Storage Projects (PSPs) earlier this year, has introduced a policy framework to monitor and regulate PSPs in the state. The policy is designed to attract investment from public and private developers and aligns with the PSP Policy 2025 and the Renewable Energy Policy 2022.The Energy Department’s latest Operational Guidelines to Odisha PSP Policy identify potential locations for off-the-river closed-loop PSPs. With many sites still unregistered or unsurveyed by state and central agencies, and with the growing importance of long-duration energy storage, private developers have approached the state for site allocations. The government has now decided to allocate some sites to developers while safeguarding state interests.The guidelines apply to all developers, including Central Public Sector Undertakings (CPSUs), State Public Sector Undertakings (SPSUs), private developers, joint ventures of CPSUs/SPSUs, government departments, and the nodal agency involved in PSP development.The policy highlights that “discarded mines, including coal mines in Odisha, could serve as hydro storage sites, acting as natural enablers for PSP development.” The state will collaborate with the Ministry of Coal, Ministry of Mines, and respective state governments to identify and develop exhausted mines as prospective PSP sites.Under the new framework, private developers can propose off-stream PSP projects. Key responsibilities include:Developers: Identify sites not already registered as state-identified projects by the nodal agency.Nodal Agency: Notify the opening of the window for receiving applications for self-identified off-stream PSPs, one month after publication of the guidelines. The initial window will last three weeks, extendable with government approval.State and Central PSUs: Continue to identify feasible sites and undertake pre-feasibility assessments for notification as state-identified projects.State-identified projects may be allocated on a nomination basis or through a Memorandum of Understanding (MoU) to CPSUs, SPSUs, or joint ventures, following evaluation of technical and financial capabilities.All PSPs will be developed under a Build-Own-Operate-Transfer (BOOT) model. The initial concession period is 40 years, extendable by up to 30 years with state government approval. Upon completion, project assets will transfer to the state or a designated SPSU free of encumbrances. For captive PSPs, the transfer does not apply as long as the project maintains Captive Generating Plant (CGP) status.Financial requirements mandate that developers have a minimum net worth of 20 per cent of the estimated project cost and submit audited accounts for the past five years. Proposals are invited from SPSUs, CPSUs, joint ventures, and private developers to develop these projects. 

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement