Odisha approves Rs 4,708 crore pumped storage project in Kalahandi
The 600 MW Upper Indravati facility at Ranibahal is expected to be commissioned by the 2030-31 financial year.
The Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, has approved the Rs 4,708.64 crore Upper Indravati Pumped Storage Project (PSP) at Ranibahal in Kalahandi district, according to reports by Pragativadi, Urban Acres, and Hindustan Times.
The 600 MW facility will be executed by the Odisha Hydro Power Corporation Limited (OHPC). Following a tendering process, Megha Engineering & Infrastructures Ltd (MEIL) has been selected as the Engineering, Procurement, and Construction (EPC) contractor.
Chief Secretary Anu Garg said the project will serve as a grid-scale energy storage system that absorbs surplus electricity during off-peak hours and generates power during peak demand. The project is targeted for commissioning by the 2030-31 financial year.
The total implementation cost includes GST, consultancy expenses, land acquisition, forest clearances, and Interest During Construction (IDC). MEIL will execute the project at a price of Rs 3,372.88 crore, excluding GST.
The project 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 at an interest rate equal to the RBI repo rate.
The facility is expected to generate approximately 1,040 million units (MU) of electrical peak energy annually, requiring 1,283 MU of off-peak pumping energy each year.