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
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement