Odisha approves Rs 4,708 crore pumped storage project in Kalahandi
The 600 MW Upper Indravati facility is expected to be commissioned by the 2030-31 financial year.
The Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, on Monday approved the 600 MW Upper Indravati Pumped Storage Project (PSP) at Ranibahal in Kalahandi district. According to reports from Pragativadi and The Times of India, the total implementation cost for the project is Rs 4,708.64 crore.
The project will be executed through the Odisha Hydro Power Corporation Limited (OHPC). Following a tendering process, the cabinet selected Megha Engineering & Infrastructures Ltd (MEIL) as the engineering, procurement, and construction (EPC) contractor. MEIL will carry out the work at a price of Rs 3,372.88 crore, excluding GST.
The funding will follow an 80:20 debt-to-equity ratio. OHPC will provide the 20 per cent equity from its internal reserves in phases, while the state government will provide the remaining 80 per cent as a soft loan linked to the RBI repo rate.
Chief Secretary Anu Garg stated that the facility will act as a grid-scale energy storage system. It is designed to take extra electricity during periods of low demand and produce power when demand is high. The 600 MW facility is expected to generate about 1,040 million units (MU) of peak energy annually, requiring 1,283 MU of off-peak pumping energy.
The project aims to support the state power grid by managing load variations and providing frequency response. It is scheduled to be commissioned by the 2030-31 financial year.