The Odisha Cabinet has officially approved the construction, financial framework, and executing contractor for the 600 MW Upper Indravati Pumped Storage Project (PSP). The major infrastructure initiative will be located at Ranibahal in the Kalahandi District.
The total project implementation cost is set at ₹4708.64 Crore, which includes GST, consultancy expenses, land acquisition, forest clearances, and Interest During Construction (IDC). The state will execute the project through the Odisha Hydro Power Corporation Limited (OHPC). Following the completion of the tendering process, the Cabinet approved the selection of M/s Megha Engineering & Infrastructures Ltd. (MEIL) as the Engineering, Procurement, and Construction (EPC) contractor. MEIL will execute the project at a price of ₹3372.88 Crore (excluding GST, which will be paid extra).
To fund the ₹4708.64 Crore initiative, the project will rely on an 80:20 debt-to-equity ratio. OHPC will provide the 20% equity portion from its internal reserves in a phased manner. The remaining 80% will be funded by the State Government as a soft loan, disbursed in phases aligned with project requirements, carrying an interest rate equal to the RBI repo rate.
The 600 MW capacity facility is designed to generate approximately 1040 Million Units (MU) of electrical peak energy annually. To achieve this, the system will require 1283 MU of off-peak pumping energy each year. The project is slated for commissioning by the 2030-31 financial year.
Once operational, the Upper Indravati PSP will function as a massive grid-scale energy storage system. It will absorb surplus electricity during off-peak hours and generate power during peak demand periods. This infrastructure is expected to provide critical support to the state power grid against the intermittent nature of renewable energy generation, offering instant frequency response, load variation mitigation, spinning reserves, and crucial black-start capabilities.
