MoP issues draft guidelines to promote development of PSPs in the country

The MoP has issued draft guidelines to promote the development of pum­ped storage projects (PSPs) in the country. As per the draft guidelines, the allotment of project sites by state governments to developers may be done on a nomination basis or through tariff-based competitive bidding. Deve­lopers will begin construction within a period of two years from the date of allotment of the project, failing which, allotment of the project site will be cancelled by the state. Further, in order to ensure the viability of PSPs, states will ensure that no upfront premium is charged for project allocation. Additionally, there will be no need to create a local area development fund.