The Odisha Cabinet, chaired on August 12, 2026, approved amendments to the state’s Pumped Storage Project (PSP) Policy to accelerate clean energy investments and simplify project development. The revised policy is aimed at improving investment facilitation, reducing procedural delays, and providing greater flexibility to developers from both the public and private sectors.

A key change is the extension of the registration window for PSP developers. The period to identify suitable sites and submit applications has been increased from three weeks to three months. This will provide developers more time to conduct feasibility studies, assess project requirements, and prepare the necessary documents.

The amended policy also introduces revised provisions for the Right of First Refusal (RoFR). Captive users will have an RoFR capped at 25%, while Independent Power Producers (IPPs) will receive an RoFR of up to 50%. The state government will take decisions on power procurement within 60 days, based on tariff viability, supporting faster and more transparent project development.

The policy provides additional flexibility to Central Public Sector Undertakings (CPSUs) and State Public Sector Undertakings (SPSUs). PSP sites identified by these entities can now be developed through a Memorandum of Understanding (MoU) or nomination basis. Such sites will be treated at par with sites identified by the state government, encouraging greater participation from public sector entities.

The revised policy has also clarified the registration fee structure. Developers will be required to pay ₹10,000 per MW, subject to a maximum of ₹1 crore per project. Provisions have also been included to address changes in project capacity during the development stage.

For captive industries, incentives will follow an “either-or” approach, applying either to renewable-based input energy or to renewable energy consumed under the policy framework.

The Cabinet further clarified that the amendments will automatically be incorporated into the existing PSP Operational Guidelines, eliminating the need for separate procedural notifications.

With these changes, Odisha aims to create a more predictable investment environment for pumped storage projects. The reforms are expected to support faster development of hydro-based energy storage capacity, strengthen grid stability, and help the state meet its growing renewable energy and clean power objectives.