India is making significant strides in advancing hydro pumped storage projects (PSPs), with a robust framework of incentives, regulatory streamlining, and digital monitoring now in place. These efforts aim to enhance the nation’s energy storage capacity critical for grid stability and renewable integration.
As of June 30, 2025, the country has commissioned 10 PSPs with a combined capacity of 6.2 GW. An additional 8 PSPs (8.5 GW) are currently under construction, while 5 projects (5.8 GW) have received concurrence from the Central Electricity Authority (CEA). Moreover, 46 projects totaling 64.8 GW are under active Survey & Investigation for Detailed Project Reports (DPRs).
The Ministry of Power has issued comprehensive guidelines promoting PSP development. These include exemptions from free power obligations, simplified environmental clearance norms, and waiver of inter-state transmission system charges for projects awarded before June 2028. The timeline for DPR approvals has been cut from 90 to 50 days, enhancing project turnaround.
To bolster transparency, the CEA has launched the “Jal Vidyut DPR” portal for real-time tracking of S&I activities, minimizing administrative bottlenecks. Procurement of storage capacity from PSPs will now follow a standardized competitive bidding framework, as per new TBCB guidelines.
The Ministry of Environment has also eased norms by classifying PSPs under the B2 appraisal category and streamlining baseline data requirements. In a further boost, forest area drilling investigations for PSPs have been equated with mining operations.
These initiatives position India as a proactive player in large-scale energy storage, supporting the global transition to clean energy.
