The Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, has approved a total investment of Rs. 4,708.64 crore for the 600 MW Upper Indravati Pumped Storage Project at Ranibahal in Kalahandi district. The project is aimed at strengthening the state’s energy storage capacity, improving grid stability and supporting the integration of renewable energy into the power network. The facility is targeted for commissioning in the financial year 2030-31.
The project will be implemented through Odisha Hydro Power Corporation Limited (OHPC), with Megha Engineering & Infrastructures Limited (MEIL) selected as the Engineering, Procurement and Construction (EPC) contractor following a tendering process. The approved project cost includes Rs. 3,371.88 crore towards construction, while the overall expenditure covers consultancy, land acquisition, forest clearances, interest during construction and other associated costs.
The project will have an installed capacity of 600 MW, comprising four units of 150 MW each. Once operational, it is expected to generate approximately 1,040 million units (MU) of electricity annually during peak demand periods, against an estimated annual pumping energy requirement of 1,283 MU during off-peak hours.
The pumped storage facility will utilise the existing Indravati reservoir as its upper reservoir, while a new lower reservoir and an underground powerhouse will be developed near Ranibahal. During periods of surplus electricity demand, water will be pumped from the lower reservoir to the upper reservoir. The stored water will subsequently be released to generate electricity during peak consumption periods, making the facility a grid-scale energy storage system.
The project will be financed through an 80:20 debt-equity structure. OHPC will contribute 20 per cent of the project cost through its internal reserves in phases, while the remaining 80 per cent will be funded through a phased state government loan carrying interest linked to the Reserve Bank of India’s repo rate.
In addition to meeting peak power requirements, the project is expected to support grid management through frequency response, load variation management, spinning reserves and black-start capabilities. These functions will become increasingly important as the share of variable renewable energy sources, particularly solar and wind power, grows in the state’s electricity mix.
The Upper Indravati Pumped Storage Project is expected to strengthen Odisha’s power infrastructure by providing a large-scale storage facility to balance electricity supply and demand. It will also support the state’s efforts to improve the reliability and flexibility of its electricity network while facilitating greater renewable energy integration.