Adani Group stocks are likely to remain in focus after the Andhra Pradesh government approved allocation of a 2,250 MW pumped storage project in YSR Kadapa district to Adani Hydro Energy Eleven Ltd under the state’s Integrated Clean Energy Policy 2024.
According to a government order issued by the Energy Department on Tuesday, the approved project is the Gandikota 2 Pumped Storage Project (PSP), which will be developed at the Lord Balaji Donthi Kona PSP Park in Kadapa district.
The proposal was cleared by the State Investment Promotion Board (SIPB), chaired by Chief Minister N Chandrababu Naidu, following recommendations from the State Investment Promotion Committee.
The project is expected to become one of India’s largest pumped storage facilities and will support renewable energy balancing by storing excess solar and wind power during low demand periods and supplying electricity during peak consumption hours.
The Andhra Pradesh government has also approved allocation of 29.2 MCM of water for one time initial filling and 2.2 MCM annually towards evaporation losses from the existing Gandikota reservoir, subject to applicable guidelines.
The project will be eligible for incentives under the Andhra Pradesh Integrated Clean Energy Policy 2024, which aims to attract investments of nearly Rs 10 lakh crore and create around 7.5 lakh jobs in the clean energy sector.
According to the government order, Andhra Pradesh Transmission Corporation Limited (APTRANSCO) will facilitate power evacuation from the project to the nearest central transmission utility substations, while Adani Hydro Energy Eleven Ltd will develop the required evacuation infrastructure.
The project is scheduled to be completed within 72 months. The generated power can be supplied both within Andhra Pradesh and outside the state.
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