Govt Commissioned 10 PSPs Totaling 6.2 GW Till June 30, 2025, Says Minister

The Indian Government has taken various initiatives to promote the development of hydro pumped storage projects (PSPs) through Budgetary support. Additionally, the private sector participation in this segment has also gained momentum, with self-identified PSPs now totaling more than 200GW and increasing almost monthly.

Data from the Minister of State for Power, Shripad Yesso Naik, submitted to the Rajya Sabha as of June 30, 2025, breaks down the current state of PSP development as follows:

1. 10 PSPs with an aggregate installed capacity of 6.2 GW have been commissioned. 
2. 8 PSPs with an aggregate capacity of 8.5 GW are under construction. 
3. 5 PSPs with an aggregate capacity of 5.8 GW have been approved by the CEA. 
4. 46 PSPs with an aggregate capacity of 64.8 GW are under Survey & Investigation for preparation of DPRs.

The Case of Adani Green

Private companies are showing increasing interest in developing Pumped Storage Projects (PSPs) in India. With the rise in self-identified PSPs, this trend is expected to grow further in the coming years. In one notable case, Adani Green Energy recently cancelled two PSP projects—a 1,200 MW project at Kurukutti and a 1,000 MW project at Karrivalasa—in Andhra Pradesh due to local issues.

These projects were previously approved by the government under a notification dated April 17, 2023. The order brought already allotted PSP projects, including Kurukutti and Karrivalasa, under the Andhra Pradesh Pumped Storage Power Promotion Policy 2022. However, the Andhra Pradesh government has now cancelled this approval following a request from Adani Green. In its request, the company cited local issues and sought either a refund of the facilitation charges paid or an adjustment of the amount against the allotment fees for its 1,000 MW Pedakota and 600 MW Raiwada PSP projects.

The proposal was presented by Adani Green Energy at the State Investment Promotion Board (SIPB) meeting held on July 17, 2025. The SIPB subsequently approved the cancellation of both the Kurukutti and Karrivalasa projects in Parvathipuram Manyam District, acknowledging the developer’s request and citing local challenges. The Andhra Pradesh government attributed the cancellation to difficulties in carrying out the project surveys.

In its notification, the state noted: “The Vice Chairman and Managing Director (VC & MD) of NREDCAP, the nodal agency for promoting renewable energy in Andhra Pradesh, has recommended the cancellation of the Kurukutti and Karrivalasa PSP projects due to challenges in conducting investigations caused by border disputes. The agency also stated that there was no fault on the part of the developer, i.e., Adani Green Energy Limited.”