State to Gain Capacity to Stabilise National Grid Through Pumped Storage Projects: CM Devendra Fadnavis

Mumbai, April 2026 : The state will develop the capacity to keep the national grid stable through pumped storage projects, Chief Minister Devendra Fadnavis said, as a Memorandum of Understanding (MoU) worth around ₹5,200 crore was signed for three pumped storage hydropower projects. The agreement was signed between the Water Resources Department and Tatysaheb Kore Warana Navshakti Nirman Sanstha Limited in the presence of the Chief Minister.

He said the agreement would prove to be an important milestone in increasing Maharashtra’s energy capacity. Through this, large-scale energy storage will be possible at a lower cost, enabling the state to contribute to stabilising the national grid.

The programme was held at the official residence ‘Varsha’, and was attended by Water Resources Minister Girish Mahajan, Additional Chief Secretary (Water Resources) Deepak Kapoor, Secretary Sanjay Belsare, MLA Dr. Vinay Kore, Chairman of Navshakti Nirman Sanstha Namdev H. Patil, Additional Chief Secretary to the Chief Minister Lokesh Chandra, and Principal Secretary Dr. Shrikar Pardeshi, among others.

Under the initiative, three projects will be set up by the institution — two Kumbhi off-stream closed loop pumped storage projects in Kolhapur/Sindhudurg districts, and one Kadvi off-stream closed loop pumped storage project in Shahuwadi. These projects will attract an investment of around ₹5,199 crore and create a total installed capacity of 1,100 MW. They are also expected to generate employment for about 1,100 people.

Maharashtra’s Strength Lies in Pumped Storage Projects

Chief Minister Fadnavis said that Maharashtra has already crossed a capacity of 80,000 MW in pumped storage hydropower projects and has made significant progress in the renewable energy sector. In this context, pumped storage projects (PSP) will prove highly useful in meeting future energy needs.

He noted that while states like Rajasthan and Gujarat are leading in solar energy due to their vast desert areas, Maharashtra’s real strength lies in pumped storage projects. The agreement will boost the state’s energy infrastructure and enable it to meet rising electricity demand in the future.

He further pointed out that a large number of data centres are being established in the state, and electricity demand is expected to grow rapidly in the next three to four years. Renewable energy-based power will be widely used in these data centres, making such projects a necessity of the time.

Support as ‘Anchor Projects’

Welcoming the entry of the cooperative sector into energy generation, the Chief Minister said that the Warana group has performed well in various sectors and will play an important role in the energy sector as well. The state government is considering extending support to these projects as ‘anchor projects’, including a positive approach towards power purchase agreements (PPA) and financial assistance.

He also said that the Water Resources Department has done commendable work in this sector. As per directions from the Central government, a separate mechanism will be established in the state for projects up to ₹3,000 crore, and the state government will expedite the process.

Clean and Sustainable Power Generation

Water Resources Minister Girish Mahajan said that earlier, citizens had to face significant load shedding during April and May. However, the situation has improved considerably in recent years due to changes in the energy sector.

He added that pumped storage projects enable pollution-free and sustainable electricity generation, and the state has the potential to reach nearly 1 lakh MW capacity in the future. These projects will help ensure 24-hour power supply, and the government is expediting all necessary procedures.

First Cooperative Sector Project to Be Fast-Tracked

MLA Vinay Kore said that pumped storage projects are crucial for achieving energy independence for Maharashtra and offer a major opportunity to effectively utilise the natural resources of the Sahyadri region. While solar energy will become cheaper and more abundant, managing it will require such storage projects, and Maharashtra has taken a timely step in this direction.

He added that apart from power generation, these projects can also help divert rainwater that flows into the sea during monsoons to drought-prone areas, offering indirect benefits. Being the first such project in the cooperative sector, it is expected to be completed at a faster pace.

Additional Chief Secretary Deepak Kapoor provided details of the agreement, stating that Maharashtra has so far created 80,515 MW of power generation capacity. A policy for implementing pumped storage projects up to ₹3,000 crore will be formulated soon as per Central government directives.

Project Details

1. Kumbhi Off-Stream Closed Loop Project (Part A), Kolhapur/Sindhudurg
   Capacity: 600 MW | Investment: ₹2,784 crore | Employment: 600
2. Kumbhi Off-Stream Closed Loop Project (Part B), Kolhapur/Sindhudurg
   Capacity: 300 MW | Investment: ₹1,434 crore | Employment: 300
3. Kadvi Off-Stream Closed Loop Project, Shahuwadi, Kolhapur
   Capacity: 200 MW | Investment: ₹981 crore | Employment: 200

Total:
Capacity: 1,100 MW | Investment: ₹5,199 crore | Employment: 1,100

So far, 59 projects with a total expected capacity of 81,215 MW are planned, attracting investments of ₹4.28 lakh crore and generating employment for 1.31 lakh people.

For these projects, an estimated 19.29 TMC of water will be required for initial storage, and 3.24 TMC annually for replenishment. The state is expected to earn approximately ₹1,762.21 crore as revenue from initial water use and ₹128.32 crore annually for replenishment.