The Odisha government has approved the financial framework and estimated project cost for the 600 MW Upper Indravati Pumped Storage Project in Kalahandi district, marking a major step towards strengthening the state’s energy storage capacity and improving grid stability. The project will be developed at Ranibahal with an estimated investment of Rs 4,708.64 crore.
The approval was granted during a high-level cabinet meeting chaired by Chief Minister Mohan Charan Majhi. The project is expected to become Odisha’s first pumped storage initiative of this scale and will play an important role in supporting the state’s growing electricity requirements and renewable energy integration.
The Upper Indravati Pumped Storage Project is designed to operate as a large-scale energy storage facility. It will store surplus electricity available in the grid during off-peak hours and use the stored energy to generate power during periods of high electricity demand. According to the project details, the facility is expected to generate approximately 1,040 million units of peak electricity, helping improve power availability when consumption is high.
The Odisha Hydro Power Corporation Limited (OHPC) has been assigned responsibility for executing the project. Megha Engineering & Infrastructures Ltd. (MEIL) has been selected as the engineering, procurement and construction (EPC) contractor for the development. The construction contract has been valued at Rs 3,372.88 crore, excluding Goods and Services Tax (GST).
The state government has set the target of commissioning the project by the financial year 2030-31. Once operational, the facility is expected to provide additional flexibility to the state’s electricity network by balancing power demand and supply. It will also support the integration of renewable energy sources, particularly solar and wind power, whose generation can vary depending on weather conditions and time of day.
Pumped storage projects are increasingly becoming important for electricity systems as renewable energy capacity expands. These facilities help store electricity when supply exceeds demand and release it when additional power is required. This capability can reduce pressure on conventional power generation and improve the reliability of electricity networks.
The project is also expected to contribute to the economic and industrial development of Kalahandi and surrounding areas by supporting a more dependable electricity supply. With this approval, Odisha has taken another step towards developing energy storage infrastructure and strengthening its long-term power sector capabilities.
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