Odisha has secured final approval from the Central Electricity Authority (CEA) for the 600 MW Upper Indravati Hydro Power (UIHP) project.
Developed by the Odisha Hydro Power Corporation (OHPC), the project is set to be a cornerstone in the state’s renewable energy expansion, with an estimated capital outlay of ₹3,160 crore. The UIHP project marks a major milestone in Odisha’s long-term strategy to harness hydroelectric power through pumped storage systems—a sustainable model that offers both energy storage and peak demand balancing. Located just 500 metres from the existing Upper Indravati Power House at Mukhiguda in the Kalahandi district, the proposed plant will utilise the existing Indravati reservoir as the upper storage basin. A new lower reservoir will be constructed near Ranibahal village, completing the closed-loop system designed for efficient energy regeneration.
Officials from the state’s energy department confirmed that the CEA clearance, received recently, paves the way for critical groundwork to commence. The project forms part of a larger renewable portfolio by OHPC, which includes two additional pumped storage projects: the 500 MW Balimela Pumped Storage Project and the 600 MW Upper Kolab Pumped Storage Project at Bariniput, both of which are currently in the Detailed Project Report (DPR) stage. Once operational, these three projects are expected to collectively enhance Odisha’s installed hydropower capacity from 2,100 MW to an impressive 3,800 MW. This leap positions the state as a regional leader in sustainable energy generation, aligned with India’s national commitments to reduce reliance on fossil fuels and transition toward net-zero emissions.
Unlike conventional hydroelectric plants, pumped storage systems allow reversible operation. During off-peak hours, excess power from the grid will be used to pump water from the lower reservoir to the upper reservoir. This water can then be released during peak demand to generate electricity, effectively transforming the facility into a massive natural battery. The UIHP project will feature an underground powerhouse fitted with four reversible turbine-generator units, each with a 150 MW capacity. According to project engineers, this subterranean setup—also housing a transformer gallery and GIS-based switchyard—minimises surface disruption and reduces land usage, aligning with eco-sensitive design principles.
Land acquisition remains a critical component of the project’s next phase. As per the DPR, approximately 152 hectares will be required, including 107.5 hectares of forest land, 24 hectares of government land, and 20.5 hectares of privately owned parcels. Officials have completed land demarcation and tree enumeration, and a proposal for forest clearance has been submitted for approval. Private land in Thuamul Rampur and Jaypatna tehsils is to be acquired through direct negotiation, which is often seen as a more socially responsible and conflict-averse approach compared to forced acquisition. With growing concerns around displacement and ecological degradation in large infrastructure projects, OHPC has emphasised its commitment to environmental and social safeguards. A comprehensive Environmental Impact Assessment (EIA) has been conducted to evaluate biodiversity loss, water resource implications, and socio-economic impact. Public hearings, a statutory requirement under the EIA process, are expected to be conducted in the coming months to ensure that community voices are incorporated into the project’s final design.
Senior officials overseeing the project noted that the facility will help manage seasonal energy volatility, especially in the face of increasing grid instability due to rising solar and wind power shares. By offering a large-scale storage solution, the pumped storage model ensures a resilient and flexible electricity supply—an asset as India’s energy consumption continues to rise. Once commissioned, electricity from the UIHP project will be evacuated through a 400 kV double-circuit transmission line connected to the Theruvali grid substation. This linkage will reinforce Odisha’s grid strength and support power export to neighbouring states during surplus generation periods.
To ensure timely and professional execution, the state has engaged Water and Power Consultancy Services (WAPCOS), a Government of India enterprise, as the project management consultant. The tendering process for construction contractors is expected to be floated shortly, with a focus on bringing in firms experienced in subterranean civil works and turbine technology. Experts in the renewable energy sector have welcomed Odisha’s move, noting that pumped storage is among the most effective solutions for grid-scale energy storage. Unlike battery systems, which have a limited lifespan and involve complex recycling processes, hydro-based storage remains efficient over several decades and offers better cost-performance ratios in the long run.
However, environmentalists have called for continued vigilance to ensure that biodiversity and water resource management remain at the heart of project execution. The proposed forest land diversion and construction near fragile ecological zones will require careful planning and community engagement to mitigate long-term impacts. Nonetheless, as India grapples with the twin challenges of climate change and energy poverty, projects like UIHP reflect a shift toward infrastructure that is not just high-performing but also sustainable and inclusive. Odisha’s decision to expand its pumped storage capabilities demonstrates a mature, forward-thinking energy strategy—one that balances ecological responsibility with economic growth.
As work progresses, the success of the Upper Indravati Hydro Power project could serve as a model for other Indian states seeking to integrate large-scale renewable infrastructure without compromising environmental and community interests. In the broader context of national climate goals, the project is a critical step toward a greener, more resilient energy future.
Odisha Hydropower Gets Boost with 600 MW Project
