NHDC to construct 525 MW pumped storage power project in Khandwa, MP

The Ministry of Power on Friday announced the Narmada Hydroelectric Development Corporation Ltd (NHDC Ltd.) will construct a 525 MW pumped storage project near the Indira Sagar Dam in Khandwa, Madhya Pradesh. The project will use the existing reservoirs of Indira Sagar and Omkareshwar, which are part of the Indira Sagar Project.

The power ministry said the project is being executed to meet the increasing peak-hour demand for energy in Madhya Pradesh. The pumped storage project will generate renewable energy that can be used to meet the state's energy needs during peak energy hours, the ministry added.

The project is expected to generate 1.2 billion units of energy during peak hours and is estimated to cost Rs 4,200 crore (approximately $550 million). NHDC Limited has been allotted this project by the Department of New & Renewable Energy, Government of Madhya Pradesh.

There is a potential for 11.2 GW of pumped storage projects in the state of Madhya Pradesh, the ministry said. Currently, two power stations of NHDC Limited, Indira Sagar power station of 1000 MW capacity and Omkareshwar power station of 520 MW capacity are in operation in the Khandwa district. The entirety of the power produced by these stations is supplied to Madhya Pradesh.

NHDC also plans the production of green energy in Madhya Pradesh with the construction of solar power projects, the ministry said. Construction of an eight MW solar project in  Sanchi and 88 MW floating solar project on Omkareshwar reservoir is currently in progress.

NHDC Ltd is a joint venture of NHPC Ltd and the Government of Madhya Pradesh.