Centre Pushes Faster PSP Development At Pinnapuram Meeting
ECONOMY & POLICY

Centre Pushes Faster PSP Development At Pinnapuram Meeting

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.

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.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code