The Odisha cabinet has approved the Rs 4,708.64 crore Upper Indravati Pumped Storage Project in Kalahandi district, clearing the financial framework for the 600 MW facility and setting a commissioning target of 2030-31. The project will be developed by Odisha Hydro Power Corporation Ltd (OHPC) at Ranibahal.
The decision was taken by the cabinet chaired by Chief Minister Mohan Charan Majhi. Chief Secretary Anu Garg said the project would be executed through OHPC, with Megha Engineering & Infrastructures Ltd (MEIL) selected as the engineering, procurement and construction contractor after a tendering process.
The approved project cost includes GST as well as consultancy expenses, land acquisition, forest clearance and interest during construction. The cabinet has fixed an 80:20 debt-equity structure for the project. OHPC will contribute the 20% equity component from its internal reserves in phases, while the state government will fund the remaining 80% through a soft loan linked to the Reserve Bank of India’s repo rate.
The Upper Indravati project is designed to operate as a large-scale electricity storage facility. During periods of lower electricity demand, surplus power will be used to pump water to a higher reservoir. The stored water will then be released to generate electricity when demand peaks.
According to the project details approved by the cabinet, the facility is expected to generate around 1,040 million units of electricity annually during peak hours. Its pumping operations will require approximately 1,283 million units of off-peak electricity. The difference reflects the energy requirement of moving water uphill for later power generation.
The project is also intended to support grid management as Odisha increases the integration of intermittent renewable energy. Its planned functions include providing frequency response, managing fluctuations in electricity demand, maintaining spinning reserves and supporting black-start capability, which helps restart parts of the power system after a major outage.
The approval brings the project past the cabinet-level financial and execution decision, while the stated commissioning schedule remains 2030-31. OHPC is expected to provide its equity contribution in phases, and MEIL will undertake the EPC work under the approved framework.
