MoP issues guidelines to promote development of PSPs

The Ministry of Power (MoP) has issued guidelines to promote the development of pumped storage projects (PSPs) across the country.

As per the guideline, the state governments may allot project sites to developers either on nomination basis to central public sector undertakings (PSUs) and state PSUs, through competitive bidding,  tariff-based competitive bidding, or as self-identified off-stream PSPs. Developers will start construction work within a period of two years from the date of allotment of the project, failing which allotment of the project site shall be cancelled by the state. However, relaxation of one year may be granted to those projects where delay in start of construction is attributable to pending environment clearance and forest clearance, provided that the applications are submitted to concerned authorities within timelines agreed at the time of award of the project. To ensure the viability of the PSPs, states will ensure that no upfront premium is charged for project allocation. Further, no water cess shall be levied on PSPs.

Click here to read the guideline