Bhubaneswar: The Odisha Cabinet on Monday approved the project cost, selection of EPC contractor and financial framework for the proposed 600 MW Upper Indravati Pumped Storage Project at Ranibahal in Kalahandi district, with the total investment pegged at Rs 4,708.64 crore, including GST.
The project will be implemented through Odisha Hydro Power Corporation (OHPC), with Megha Engineering & Infrastructures Ltd (MEIL) selected as the Engineering, Procurement and Construction (EPC) contractor at a bid price of Rs 3,372.88 crore, excluding GST.
According to an official press release, the overall project cost includes expenditure on consultancy, land acquisition, forest clearances and IDC (Interest During Construction).
The project will be financed through an 80:20 debt-equity structure. OHPC will contribute 20 per cent equity from its internal reserves in phases, while the remaining 80 per cent will be funded through a phased State Government loan carrying an interest rate at par with the RBI repo rate.
Once operational, the 600 MW facility is expected to generate approximately 1,040 million units (MU) of annual peak electricity, against an estimated annual consumption of 1,283 MU for off-peak pumping operations.
The project is scheduled for commissioning in the financial year 2030-31.
The pumped storage facility is envisaged as a major grid-scale energy storage system, capable of absorbing surplus electricity during off-peak hours and supplying power during periods of high demand.
It is also expected to strengthen grid stability through frequency response, load variation management, spinning reserves and black-start capabilities, particularly in view of the growing integration of intermittent renewable energy sources.
