Lok Sabha Question No. 1998 (UNSTARRED), answered on 2025-12-11
Subject: Comissioning of Pumped Storage Projects
Ministry: POWER
Asked by: Shri Pradeep Kumar Singh

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO. 1998 ANSWERED ON 11.12.2025

## COMISSIONING OF PUMPED STORAGE PROJECTS

1998.  SHRI PRADEEP KUMAR SINGH:

Will the Minister of POWER be pleased to state:

- (a) the manner in which the Government is ensuring timely commissioning of Pumped Storage Projects (PSP) like in Pinnapuram and Tehri and coordinating land and water allocation issues with concerned States;
- (b) the reasons behind States being urged to waive local charges for pumped storage projects and the expected financial impact of the same;
- (c) the  manner  in  which  the  Renewable  Consumption  Obligation  (RCO)  for energy storage would differ from previous voluntary obligations; and
- (d) whether the tariff based competitive bidding guidelines for pumped storage project energy procurement have been finalised, if so, the details thereof and the manner in which these would ensure optimal pricing?

## A N S W E R

THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

- (a):  The  Government  has  adopted  the  following  measures  to  ensure  time-bound completion of Pumped Storage Projects (PSPs):
- i. The Ministry of Power in April, 2023 issued guidelines to promote development of  PSPs. These guidelines provide various methods of allotment of PSP sites, exemption  from  free  power  obligation/Local  Area  Development  Fund  and utilization of exhausted coal mines etc.
- ii. Central Electricity Authority (CEA) has revised  Guidelines for formulation and concurrence  of  Detailed  Project  Reports  (DPR)  of  PSPs.  Under  the  revised guidelines, the timeline for concurrence of DPR has been reduced from 90 days to 50 days for all type of PSPs. Further, CEA has also stipulated that clearance of Inter-State Aspects is not required for PSPs.
- iii. CEA  has  launched  the  'Jal  Vidyut  DPR'  portal  for  monitoring  Survey  and Investigation  (S&I)  activities  of  HEPs  and  PSPs.  The  portal  enables  real-time
- tracking  of  workflows  and  pending  tasks  across  appraising  agencies  and developers, helping to identify and address delays effectively. iv. Ministry of Environment, Forest & Climate Change (MoEF&CC), on 18.05.2023, has notified to appraise PSPs under B2 category subject to certain conditions. v. The MoEF&CC, on 14.08.2023, issued specific Terms of Reference (TOR) for the proposals involving off stream PSPs wherein collection of baseline data for one season (other than monsoon) is prescribed for off stream closed loop PSPs and collection of baseline data for two seasons (pre-monsoon & post-monsoon) is prescribed for off stream open loop PSPs. vi. The MOEF&CC, in August 2024, has extended the provisions relating to survey in the forest areas for mining projects to other development projects including hydel/PSPs. vii. MOEF&CC  vide letter dated 10.09.2025 has enhanced the number of boreholes for undertaking survey and explorations in the forest area for mining and developmental projects including hydel. viii. The  Government of India, vide  notification  dated  01.08.2025,  has  revised  the capital  expenditure  limit  for  schemes  related  to  setting  up  hydro  generating stations  to  ₹3,000  crore,  requiring  the  concurrence  of  the  CEA.  Further,  the Government  has  exempted  off-stream  closed-loop  pumped  storage  schemes, irrespective  of  the  quantum  of  capital  expenditure,  from  the  requirement  of concurrence  by  the  CEA.  However,  Developers  may  seek  technical  guidance from the CEA for projects under exempted category. The issues related to land and water allocation are taken up by the developers with the concerned State Government in accordance with the respective State policies. (b): States have been urged to waive any local levies/charges, no duty on energy stored for PSPs keeping in view that PSPs do not generate energy but shift the time of energy availability. In fact, they consume more energy. PSPs are also important from the point of view of grid stability  in terms of providing greater inertia and balancing power. (c):  The  Renewable Consumption Obligation (RCO) notification dated 20.10.2023 was superseded by the revised RCO Gazette Notification dated 27.09.2025, issued by  the  Ministry  of  Power  under  the  Energy  Conservation  Act,  2001.There  is  no obligation  for  energy  storage  under  the  Renewable  Consumption  Obligation notification dated 27.09.2025. It provides that Designated consumers may fulfil the specified Renewable Consumption Obligation through consumption of renewable electricity, either directly or through an energy storage system. (d): Ministry of Power vide Resolution dated 06.02.2025, issued the 'Tariff Based Competitive  Bidding  Guidelines  for  Procurement  of  Storage  Capacity/  Stored at

Energy from Pumped Storage Plants' available https://powermin.gov.in/sites/default/files/webform/notices/Guideline\_for\_procurem ent\_of\_storage\_capacity\_stored\_energy\_from\_pumped\_storage\_plants\_0.pdf

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