Rs 7,376 cr Kamalapadu PSP gets state govt nod
Picture for representational purpose only
Vijayawada: The state government accorded administrative approval for the execution of the Kamalapadu Pumped Storage Hydro Electric Project in Anantapur district with a total installed capacity of 950 MW, at an estimated cost of Rs 7,376.74 crore.
The approval includes clearance of the project’s Detailed Project Report (DPR), enabling Andhra Pradesh Power Generation Corporation Limited (APGenco) to proceed with execution without obtaining separate Techno-Economic Concurrence (TEC) from the Central Electricity Authority (CEA). The decision follows guidelines issued by the ministry of power on August 1, 2025, and subsequent communication from the CEA dated August 7, 2025.
The Kamalapadu project comprises three units of 238 MW each and two units of 118 MW each, aggregating to 950 MW. The estimated project cost of Rs 7,376.74 crore includes Goods and Services Tax (GST), Interest During Construction (IDC), financing charges, and escalation costs.
The managing director of APGenco had sought government approval for the DPR and administrative sanction in line with the revised central policy framework, which permits DPR approval to substitute TEC for pumped storage projects to accelerate capacity addition.
Officials said the project is strategically significant for Andhra Pradesh’s power sector, particularly in enhancing grid flexibility and supporting large-scale integration of renewable energy.
Pumped storage projects play a key role in balancing supply and demand by storing surplus power during off-peak periods and supplying electricity during peak demand.
With the approval in place, APGenco is expected to initiate further steps for project execution, including tendering and construction activities. The Kamalapadu project is part of the state’s broader push to expand clean energy capacity and improve power reliability amid growing demand.
