Odisha has approved a ₹4,708.64 crore investment for the 600 MW Upper Indravati Pumped Storage Project in Kalahandi district, marking a significant step in expanding the state’s energy storage infrastructure. The project is expected to strengthen grid stability, support renewable energy integration and improve the reliability of electricity supply during peak-demand periods.
The approval was granted at a Cabinet meeting chaired by Chief Minister Shri Mohan Charan Majhi on November 9, 2026. Located at Ranibahal in Kalahandi, the project will be implemented by Odisha Hydro Power Corporation Limited (OHPC), with Megha Engineering & Infrastructures Ltd (MEIL) selected to execute the project.
Upper Indravati Project to Feature 600 MW Installed Capacity
The Upper Indravati Pumped Storage Project will have an installed capacity of 600 MW, comprising four generating units of 150 MW each. According to project details, the facility is expected to generate approximately 1,040 million units (MU) of electricity annually during peak-demand periods, while requiring around 1,283 MU annually for pumping operations.
The project will use the existing Upper Indravati reservoir as its upper reservoir, while a new lower reservoir and an underground powerhouse will be developed. The proposed development will require approximately 151.916 hectares of land.
With a targeted commissioning timeline of FY 2030-31, the project is expected to add a major energy storage asset to Odisha’s power infrastructure.
How the Pumped Storage Project Will Support Grid Stability
The project will operate as a grid-scale energy storage facility, using surplus electricity available during off-peak hours to pump water from the lower reservoir to the upper reservoir.
When electricity demand rises, the stored water will be released through turbines to generate power and supply electricity to the grid. This arrangement will allow Odisha to shift electricity availability from periods of surplus generation to periods of higher consumption.
Beyond peak-hour power generation, the facility is expected to provide important grid-support services, including frequency response, load management, spinning reserves and black-start capabilities.
These functions will become increasingly important as the share of renewable energy in the electricity mix expands. Since solar and wind generation can fluctuate depending on weather conditions and the time of day, large-scale storage facilities can help balance variations in electricity supply and demand.
Odisha Outlines Financing Structure for the Project
The total project investment of ₹4,708.64 crore includes construction expenditure, consultancy, land acquisition, forest clearances and interest during construction.
The project will follow an 80:20 debt-equity financing structure. OHPC will contribute 20% of the equity through its internal reserves in phases, while the remaining 80% will be provided by the state government through phased soft loans at an interest rate linked to the Reserve Bank of India’s repo rate.
Strengthening Odisha’s Renewable Energy Infrastructure
The approval of the Upper Indravati Pumped Storage Project comes as Odisha looks to expand its energy storage capabilities alongside the growing deployment of renewable energy.
Large-scale pumped storage facilities can play an important role in managing fluctuations in solar and wind power generation, providing additional flexibility to electricity networks and supporting reliable power supply during periods of high demand.
With 600 MW of planned capacity and an annual peak-period generation estimate of 1,040 million units, the Upper Indravati project represents a significant addition to Odisha’s energy infrastructure.
Targeted for commissioning in FY 2030-31, the project is expected to strengthen the state’s ability to manage renewable energy integration while supporting a more flexible and reliable power grid.
