Bhubaneswar, Nov 10 (UDN): In a major boost to Odisha’s renewable energy and power infrastructure, the State Cabinet has approved a ₹4,708.64-crore investment for the proposed 600 MW Upper Indravati Pumped Storage Project at Ranibahal in Kalahandi district.
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The decision, taken at a Cabinet meeting chaired by Chief Minister Mohan Charan Majhi on Monday, includes approval of the project cost, selection of the Engineering, Procurement and Construction (EPC) contractor and the proposed financial structure.
The project will be implemented by the Odisha Hydro Power Corporation (OHPC), with Megha Engineering & Infrastructures Ltd (MEIL) selected as the EPC contractor. The company has quoted ₹3,372.88 crore, excluding GST, for executing the project.
The overall project cost of ₹4,708.64 crore, inclusive of GST, also covers consultancy charges, land acquisition, forest clearances and interest during construction (IDC).
80:20 debt-equity financing model
The project will be funded through an 80:20 debt-equity structure. OHPC will contribute 20 per cent of the project cost as equity from its internal reserves in phases, while the remaining 80 per cent will be financed through phased loans from the State Government.
The government loan will carry an interest rate linked to the Reserve Bank of India’s (RBI) repo rate, according to the approved financial framework.
1,040 million units of peak power annually
Once operational, the 600 MW pumped storage facility is expected to generate approximately 1,040 million units (MU) of electricity annually during peak-demand periods. Its estimated annual electricity requirement for pumping water during off-peak hours is around 1,283 MU.
The project is scheduled to be commissioned in the financial year 2030-31.
Pumped storage projects function as large-scale energy storage systems. They use surplus electricity during periods of low demand to pump water to an upper reservoir and release it through turbines to generate electricity when demand rises.
Boost to renewable energy and grid stability
The Upper Indravati project is expected to play an important role in strengthening Odisha’s electricity infrastructure by providing flexible power storage and generation capacity.
Apart from meeting peak-hour electricity demand, the facility will support grid stability through frequency regulation, load balancing, spinning reserves and black-start capabilities.
The project is particularly significant as Odisha and the country expand their renewable energy capacity. Since solar and wind power generation fluctuate depending on weather conditions, large-scale storage facilities are expected to help balance electricity supply and demand.
With the proposed investment, Odisha aims to strengthen its power storage capacity, improve grid reliability and prepare its electricity network to accommodate a growing share of renewable energy.
