- The state government of Odisha has approved the ₹4,708.64 crore Upper Indravati Pumped Storage Project.
- The proposed facility will have an installed capacity of 600 MW.
- The project will be developed by Odisha Hydro Power Corporation Ltd. (OHPC), a state government undertaking.
- It is expected to generate approximately 1,040 million units of electricity annually during peak-demand periods.
- The project will store surplus electricity and release it when demand rises, helping improve grid flexibility.
- Commissioning is targeted for the financial year 2030-31.
The Indian state government of Odisha has approved a total project cost of ₹4,708.64 crore for the 600 MW Upper Indravati Pumped Storage Project at Ranibahal in Kalahandi district. The decision was taken at a meeting chaired by Chief Minister Mohan Charan Majhi. The project will be implemented by Odisha Hydro Power Corporation Ltd. (OHPC), with Megha Engineering & Infrastructures Ltd. selected as the engineering, procurement and construction (EPC) contractor. The approved cost includes construction, consultancy, land acquisition, forest clearance and interest during construction.
The facility will operate as a grid-scale energy storage system using pumped-storage technology. During periods of lower electricity demand, surplus power will be used to pump water to an upper reservoir. When demand increases, the stored water will be released to generate electricity. Once operational, the 600 MW facility is expected to generate approximately 1,040 million units of electricity annually during peak-demand periods. Its pumping operations are expected to consume around 1,283 million units of off-peak electricity annually. This distinction is important because pumped storage shifts electricity availability across different periods rather than creating a new primary source of energy.
The project is expected to support Odisha's electricity grid by providing frequency response, managing fluctuations in demand and maintaining spinning reserves. It will also offer black-start capability, which can help restore power supply following a major grid disruption. These services will become increasingly important as the state integrates more variable renewable energy, particularly solar and wind power, into its electricity system. Energy storage can help balance differences between the timing of renewable electricity generation and consumer demand.
The project will follow an 80:20 debt-equity financing structure. OHPC will contribute 20% of the project cost through its internal reserves, while the remaining 80% will be provided through phased state government loans linked to the Reserve Bank of India's repo rate. The facility is targeted for commissioning in the financial year 2030-31. Its development represents a major investment in Odisha's power infrastructure and its ability to manage future electricity requirements.
For businesses, the project points to growing investment in large-scale energy storage and grid infrastructure. Improved power system flexibility can support industries with high electricity requirements and help manage the variability associated with renewable energy procurement. It also creates potential demand for engineering, construction, equipment and energy management services.
The development aligns with Cognitud's focus on energy transition, climate action and sustainable infrastructure. As organisations assess renewable energy adoption and electricity-related emissions, Cognitud can help evaluate energy strategies, identify decarbonization priorities and incorporate sustainability considerations into operational and infrastructure planning.
