Power ministry plans tax breaks for pumped storage hydro projects
To promote pumped storage hydro-power projects in India, the Ministry of Power has proposed giving incentives such as tax breaks, easy environment clearance and providing land at concessional rates.
The ministry has released draft guidelines on pumped storage projects (PSPs) to seek comments from states and state-run companies as well as private firms within a fortnight till March 2, 2023.
Keeping in view the immense utility of the PSPs in grid stabilisation as well as meeting the peaking power demand, a need for formulating separate guidelines to promote PSPs was felt to set the direction of its development, the minsitry said in the guidelines.
The Central Electricity Authority (CEA) estimates regarding on-river pumped storage potential is 103 GW in India. Apart from this, a large number of off-river pumped storage potential is also available, the ministry added.
As of now, eight projects (4,745.60 MW) are presently operational, four projects (2,780 MW) are under construction, and