VIJAYAWADA: The Government of Andhra Pradesh has approved the allocation of the 2,250 MW Gandikota-2 Pumped Storage Project (PSP) in Kadapa district to Adani Hydro Energy Eleven Ltd.
The (AHE11L), further strengthening the State’s position as India’s emerging clean energy and energy storage hub.
The project, to be developed by the Adani Group under the Andhra Pradesh Integrated Clean Energy Policy 2024, is expected to become one of the largest pumped storage projects in the country and a key pillar of Andhra Pradesh’s next-generation power infrastructure strategy.
The approval was accorded following clearance by the State Investment Promotion Board (SIPB), chaired by Chief Minister N. Chandrababu Naidu.
The Gandikota-2 PSP will be developed at the Lord Balaji Donthi Kona PSP Park in Kadapa district.
The project is expected to significantly strengthen Andhra Pradesh’s renewable energy balancing and storage capabilities while supporting the State’s rapidly growing ecosystem of green hydrogen, electric mobility, and AI-driven data centres.
The Gandikota-2 PSP is scheduled to be completed within 72 months.
Industry experts view large-scale storage assets such as Gandikota-2 as critical enablers for India’s future energy economy and for supporting energy-intensive digital infrastructure such as hyperscale data centres.
As part of the approvals, the Government has sanctioned allocation of 29.20 MCM of water for one-time initial filling and 2.20 MCM annually towards evaporation losses from the existing Gandikota reservoir, subject to prevailing guidelines.
The project will also be eligible for incentives under the Clean Energy Policy 2024.