Govt issues guidelines for development of pumped storage projects

12 Apr 2023 CW Team

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

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

Infrastructure Urban

04 May 2026

Jyoti Structures FY26 profit rises 56.5%

Jyoti Structures (JSL) recently reported strong financial results for the quarter and year ended 31 March 2026, driven by disciplined execution, cost management and steady progress across its order book.For Q4 FY2025-26, total income rose 44.2 per cent to Rs 2.41 billion from Rs 1.67 billion in Q4 FY2024-25. EBITDA increased 58.6 per cent to Rs 237 million, while EBITDA margin improved by 89 basis points to 9.84 per cent. Profit before tax grew 53.3 per cent to Rs 188.5 million, and net profit rose 51.9 per cent to Rs 181.4 million.For FY2025-26, total income grew 53.1 per cent to Rs 7.72 bill..

Infrastructure Energy

04 May 2026

Cat BEPU to Power Doppstadt Separator at IFAT 2026

Caterpillar’s Cat Battery Electric Power Unit (BEPU) has been selected by Doppstadt to power its SWS 6 Spiral Shaft Separator, which will be showcased for the first time at IFAT 2026 in Munich, Germany, from 4–7 May.The compact plug-and-play BEPU is designed to replace a diesel engine within the same space, using the same mounting locations and relative machine position. It integrates the battery, motor, inverter, onboard charging, cooling and controls, enabling OEMs to electrify existing chassis platforms without extensive redesign.Caterpillar and Cat dealer Zeppelin Power Systems have be..

Infrastructure Urban

04 May 2026

VECV sales rise 6.9% in April 2026

VE Commercial Vehicles, a joint venture between Volvo Group and Eicher Motors, recorded sales of 7,318 units in April 2026, compared to 6,846 units in April 2025, registering 6.9 per cent growth. The total included 7,159 units under the Eicher brand and 159 units under the Volvo brand.Eicher branded trucks and buses reported sales of 7,159 units during the month, up 6.6 per cent from 6,717 units in April 2025. In the domestic commercial vehicle market, Eicher sales rose 8.6 per cent to 6,797 units from 6,257 units a year earlier.Exports declined 21.3 per cent, with VECV recording 362 units in ..