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Maharashtra Government Signs Revised MoU with NTPC to Boost Hydro Capacity to 2,600 MW

The Maharashtra government signed a revised MoU with NTPC to expand the combined capacity of the Amba and Kumbhe pumped storage hydro projects from 1,800 MW to 2,600 MW. The expansion adds 800 MW based on NTPC's geological surveys and Central Electricity Authority recommendations. This is the 60th MoU under the state's PPP policy for pumped storage projects, aiming for 82,015 MW total generation. The state offers fiscal benefits like transmission charge exemptions and land lease subsidies to attract Rs 4.28 lakh crore investment.

Key Points: Maha Govt, NTPC Sign MoU to Expand Raigad Hydro Capacity

  • Revised MoU signed between Maharashtra govt and NTPC
  • Amba and Kumbhe hydro capacity increased by 800 MW
  • Total capacity to reach 2,600 MW
  • Part of state's push to become India's "Pumped Storage Hub"
3 min read

Maha govt signs revised MoU with NTPC to expand Raigad hydro capacity

Maharashtra govt signs revised MoU with NTPC to expand Amba & Kumbhe hydro projects from 1,800 MW to 2,600 MW, boosting green energy and grid stability.

"The expansion of the Amba and Kumbhe projects is a testament to the technical viability of Maharashtra's water resources - Deepak Kapoor"

Mumbai, April 29

A revised Memorandum of Understanding was signed on Wednesday between the Maharashtra State Water Resources Department and NTPC Limited in the presence of Chief Minister Devendra Fadnavis, which will pave the way for increasing the combined capacity of the Amba and Kumbhe Pumped Storage Hydroelectric Projects from 1,800 megawatts to 2,600 megawatts.

The signing ceremony was attended by Revenue Minister Chandrashekhar Bawankule, Water Resources Minister Girish Mahajan, and senior officials, including Additional Chief Secretary (Water Resources) Deepak Kapoor and NTPC's Regional Executive Director (Western Region) E Satya Phani Kumar.

Following detailed surveys conducted by NTPC Limited, it was found that the geological and technical parameters of the sites enabled an additional 800 megawatts of power generation.

Acting on recommendations from the Central Electricity Authority, the original MoU was updated to reflect the enhanced capacities: Amba Pumped Storage Project 800 megawatts to 1,500 megawatts (+700 megawatts); Kumbhe Pumped Storage Project 1,000 megawatts to 1,100 megawatts (+100 megawatts), with the total capacity earlier at 1,800 megawatts.

Additional Chief Secretary Deepak Kapoor noted that this marks the 60th MoU signed by the state under its Public-Private Partnership policy for Pumped Storage Projects, which was issued on December 20, 2023.

"The state's broader vision for hydroelectric power is ambitious, with total expected generation of 82,015 megawatts across 60 MoUs. The projected investment is worth Rs 4.28 lakh crore, with estimated job creation for 1.31 lakh people," Kapoor said.

He stated that the expansion of the Amba and Kumbhe projects is a testament to the technical viability of Maharashtra's water resources, adding that the 800 megawatt addition will significantly contribute to the state's grid stability and green energy goals.

The Maharashtra government has recently shifted its energy strategy to prioritise Pumped Hydro Storage, aiming to become India's "Pumped Storage Hub".

The policy framework is primarily governed by the Maharashtra Renewable Energy and Energy Storage Policy (2025-26 to 2035-36), notified on March 18, 2026. The policy reflects the state's urgent need to manage the massive influx of intermittent solar and wind power while supporting the rapid expansion of energy-intensive industries such as data centres.

To attract the estimated Rs 4.28 lakh crore in investment, the policy offers several fiscal and operational benefits. Projects are exempt from transmission and wheeling charges, provided the energy is consumed within Maharashtra.

The policy offers exemption from electricity duty and cross-subsidy surcharges for energy used for "pumping" (charging), and waiver of non-agricultural tax and premiums for land used for these projects.

In addition, the state cabinet has approved a system for "bulk water entitlement", reserving specific volumes from reservoirs for Pumped Hydro Storage projects. Further, government land can be leased at a nominal rate of Rs 1 per annum for 30 years in specific cases. For private land, lease rates are set at 6 per cent of the land value or Rs 1.25 lakh per hectare.

- IANS

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Reader Comments

J
James A
Impressive numbers: 60 MoUs, Rs 4.28 lakh crore investment, 1.31 lakh jobs. But will these jobs actually go to locals? And will the project costs escalate like other big infrastructure projects in India? I remain cautiously optimistic.
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Priya S
Waiver of electricity duty and cross-subsidy surcharges? That's a huge relief for these projects. Also Rs 1 per annum lease for govt land is practically free. The intent is clear - Maharashtra wants to become the pumped storage hub of India. But environmental impact studies are a must before we damage our rivers.
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Vikram M
The original MoU was for 1800 MW and now they found 800 MW more? Either the initial survey was poorly done or NTPC just wants to inflate the project size. I hope there's proper transparency in how these 'geological and technical parameters' are assessed. But overall, pumped storage is the way forward.
S
Sarah B
Glad to see the state focusing on grid stability. With data centres and EV charging stations coming up massively, our electricity demand is going to skyrocket. This 2600 MW pumped storage will be a life saver during peak hours. 👏
A
Ananya R
What about the local farmers who depend on these reservoirs for irrigation? The 'bulk water entitlement' system sounds good on paper, but who will ensure that water for farming is not compromised? Hope the government has a clear plan for water allocation.

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