The government has issued final guidelines to encourage the development of pumped storage projects in the country. 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) 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.