Gandhisagar Pumped Hydro Project: ₹11,500 Crore Plan for 1,920 MW Storage Capacity

The news

The Madhya Pradesh Cabinet, led by Chief Minister Dr. Mohan Yadav, is set to approve the ₹11,500 crore Gandhisagar Pumped Hydro Storage Project during a meeting in Mandsaur district on 18 November 2026. The project, with a planned capacity of 1,920 MW, is being developed by the Greenko Group in Rampura tehsil of Neemuch district over approximately 414 hectares. It is expected to generate 3,580 million units of electricity annually and provide around 4,000 construction jobs and about 200 permanent on-site positions, according to the state government.

The project uses the existing Gandhisagar reservoir as a lower reservoir, while a new upper reservoir has been built. Surplus solar or wind energy from the grid will pump water from the lower to the upper reservoir; during peak demand hours, the water will be released back down, driving nine turbines to generate electricity for up to six continuous hours. The estimated round-trip efficiency is about 80%, and the rated head in turbine mode is approximately 122 metres. The first turbine set is scheduled to begin operation in December 2026, with full operation targeted for June 2027. The power generated will be sold to NTPC, SECI, and power distribution companies in Madhya Pradesh and other states, which officials said would help lower peak-hour electricity tariffs and reduce financial burdens on discoms.

How does pumped hydro storage work?

Pumped hydro storage uses the difference in elevation between two reservoirs to store and generate electricity. During periods of low demand or surplus renewable energy, water is pumped from a lower reservoir to an upper reservoir. When demand peaks, the water is released back down through turbines, generating electricity. The Gandhisagar project uses the existing reservoir as the lower basin and a newly built upper reservoir, with a round-trip efficiency of about 80%, meaning not all input energy is recovered.

What are the project's benefits and challenges?

The government claims the project will provide around 4,000 construction jobs and 200 permanent operations and maintenance jobs. It is expected to supply affordable peak-hour power to discoms, reducing their financial burden. However, the existing Gandhisagar reservoir also supports a 115 MW hydroelectric station, fisheries, drinking water supply, and irrigation, requiring coordination among competing uses. The project's environmental impact on the Gandhisagar Wildlife Sanctuary, which has been developed as a second cheetah habitat after Kuno and supports vultures and crocodile breeding in the Chambal River, will also need assessment.

What is the next step for the project?

The first turbine set is scheduled to begin operation in December 2026, and full operation is targeted for June 2027. Timely commissioning, grid connectivity through a 765/400 kV substation about 60 km away in Mandsaur district, and transparent monitoring of generation, costs, and employment will be critical. Water management and environmental safeguards must be assessed alongside other uses of the reservoir.