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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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.

Infrastructure Urban

17 Jul 2026

Jaisalmer Station Redeveloped Under Amrit Bharat Scheme

Jaisalmer Railway Station in Rajasthan has been redeveloped under the Amrit Bharat Station Scheme, with work completed in July 2026 at an estimated cost of around Rs 1,400 million (mn). The redevelopment marries local architectural elements such as yellow sandstone and traditional Rajasthani motifs with modern passenger facilities. Project planners sought to balance conservation of historic character with requirements of a contemporary transit hub. The project aims to preserve built heritage while improving the travel experience for visitors and residents. The Amrit Bharat Station Scheme is an..

Infrastructure Urban

17 Jul 2026

Railways Tightens Contractor Rules And Opens Wagon Design To Industry

Indian Railways announced reforms to improve project execution, encourage private sector innovation in freight transportation and make logistics more efficient. Measures form part of a plan to implement 52 reforms and tighten contractor eligibility for railway projects. Contractors must provide an upfront performance security of 10 per cent before work begins rather than face deductions from running bills, and those with pending litigation exceeding 50 per cent of net worth will be barred from bidding; professional indemnity and all-risk insurance have been introduced to strengthen project man..

Infrastructure Urban

17 Jul 2026

VMRDA Region Gets New Development Blueprint

The state government approved the revised Master Plan-2041 for the Visakhapatnam Metropolitan Region Development Authority through government order GO-144 on July eight, granting statutory status under the AP Metropolitan Region and Urban Development Authorities Act of 2016. The updated plan replaces the 2021 plan after a detailed review of current needs and infrastructure requirements. It followed public consultations and assessments. Public participation formed a key element of the revision process. Authorities initially received 3,722 objections and suggestions, which were consolidated into..