Centre Pushes Faster PSP Development At Pinnapuram Meeting

20 Nov 2025 CW Team

Shri Manohar Lal emphasised that PSPs are crucial for storing surplus green power and supplying electricity during non-solar hours. Addressing concerns regarding evaporation losses at PSP reservoirs, he suggested deploying floating solar projects as an effective mitigation measure. He also stressed the vital role of State Governments in PSP development—particularly in timely site and water allocation, and faster clearances. The Minister urged Members to work with States to consider removing charges such as green-energy cess, water tax and reservoir lease fees to accelerate PSP deployment.

Members were informed that India has identified a nationwide PSP potential of approximately 224 GW. Of this, ten PSPs totalling around 7 GW have already been commissioned; another ten projects with a combined capacity of roughly 12 GW are under construction; and fifty-six PSPs with around 78 GW capacity are at various stages of planning and development.

Officials highlighted several policy measures introduced to fast-track PSP development, including Guidelines for PSP development specifying modalities for site allotment and exemptions from free-power and Local Area Development Fund obligations. A full waiver of Inter-State Transmission System charges for 25 years has been granted for projects awarded on or before 30 June 2028. Further policy support includes budgetary allocations for enabling infrastructure, Renewable Consumption Obligations for energy-storage systems and Tariff-Based Competitive Bidding guidelines for procuring stored energy from PSPs. Off-stream closed-loop PSPs have been exempted from the requirement of CEA concurrence, and the capital-expenditure threshold for CEA approval has been revised to Rs 30 billion from earlier limits of Rs 25 billion and Rs 10 billion depending on the route of project award.

Members of the Committee welcomed the Ministry’s comprehensive push, noting that steps such as easing technical appraisal requirements for closed-loop PSPs, budgetary support for enabling infrastructure and waivers on ISTS charges have strengthened confidence among developers and States. They also discussed environmental aspects of PSPs and other renewable sources, observing that PSPs offer relatively lower ecological impact.

Minister of State Shri Shripad Yesso Naik highlighted that the commissioning of all eight units of the 1,680 MW Pinnapuram PSP, alongside the 500 MW Tehri PSP during 2025–26, marks a major achievement reflecting strong coordination between the Centre, State Governments, CPSUs and the private sector.

The Ministry of Power convened a meeting of its Consultative Committee of Members of Parliament at Pinnapuram in Kurnool district, Andhra Pradesh, focusing on the growing importance of Pumped Storage Projects (PSPs). The session was chaired by Union Minister of Power Shri Manohar Lal, and attended by Minister of State for Power Shri Shripad Yesso Naik, MPs from both Houses, and senior officials from the Ministry of Power, the Central Electricity Authority (CEA) and Central Public Sector Undertakings. Shri Manohar Lal emphasised that PSPs are crucial for storing surplus green power and supplying electricity during non-solar hours. Addressing concerns regarding evaporation losses at PSP reservoirs, he suggested deploying floating solar projects as an effective mitigation measure. He also stressed the vital role of State Governments in PSP development—particularly in timely site and water allocation, and faster clearances. The Minister urged Members to work with States to consider removing charges such as green-energy cess, water tax and reservoir lease fees to accelerate PSP deployment. Members were informed that India has identified a nationwide PSP potential of approximately 224 GW. Of this, ten PSPs totalling around 7 GW have already been commissioned; another ten projects with a combined capacity of roughly 12 GW are under construction; and fifty-six PSPs with around 78 GW capacity are at various stages of planning and development. Officials highlighted several policy measures introduced to fast-track PSP development, including Guidelines for PSP development specifying modalities for site allotment and exemptions from free-power and Local Area Development Fund obligations. A full waiver of Inter-State Transmission System charges for 25 years has been granted for projects awarded on or before 30 June 2028. Further policy support includes budgetary allocations for enabling infrastructure, Renewable Consumption Obligations for energy-storage systems and Tariff-Based Competitive Bidding guidelines for procuring stored energy from PSPs. Off-stream closed-loop PSPs have been exempted from the requirement of CEA concurrence, and the capital-expenditure threshold for CEA approval has been revised to Rs 30 billion from earlier limits of Rs 25 billion and Rs 10 billion depending on the route of project award. Members of the Committee welcomed the Ministry’s comprehensive push, noting that steps such as easing technical appraisal requirements for closed-loop PSPs, budgetary support for enabling infrastructure and waivers on ISTS charges have strengthened confidence among developers and States. They also discussed environmental aspects of PSPs and other renewable sources, observing that PSPs offer relatively lower ecological impact. Minister of State Shri Shripad Yesso Naik highlighted that the commissioning of all eight units of the 1,680 MW Pinnapuram PSP, alongside the 500 MW Tehri PSP during 2025–26, marks a major achievement reflecting strong coordination between the Centre, State Governments, CPSUs and the private sector.

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