The government issued final guidelines to encourage the development of non-polluting and environmentally friendly pumped storage projects in the country. According to a power ministry notification, the guidelines were finalised after receiving suggestions from stakeholders. According to the guidelines, state governments may award project sites to developers in a variety of ways, including competitive bidding, tariff-based competitive bidding, and nomination to CPSUs and state PSUs. Pumped Storage Projects (PSPs), according to the ministry, provide the necessary scale of storage and have a long service life of more than 40-50 years, resulting in a low cost of delivered energy over the life of the projects. PSPs are also non-polluting and better for the environment. PSPs account for more than 95% of the installed global energy storage capacity. It is estimated that pumped hydro projects around the world store up to 9,000 gigatonne hours (GWh) of electricity, it said. Developers must begin construction work within two years of the project's allotment date, or else the state will cancel the allotment of the project site. However, the notification stated that a one-year relaxation may be granted on a conditional basis, and that no upfront premium will be charged for project allocation. States may exempt off-the-river PSPs from paying stamp duty and registration fees when purchasing land. Government land, if available, may be provided at a concessional rate to the developers on an annual lease rent basis, it added. PSPs may be supported through concessional climate finance. Sovereign green bonds issued as part of the government's overall market borrowings for green infrastructure may be used in the development of PSPs that use renewable energy for charging, it said. The Central Electricity Authority (CEA) estimates that the potential for on-river pumped storage in India is 103 GW. Also Read Environment Ministry gives preliminary approval for Wayanad Tunnel Network Planning Group suggests four infra projects under PM GatiShakti