India’s state-run hydropower company NHPC is set to invest around INR40bn ($481m) in the proposed 750MW Kuppa pumped hydro storage project, located at Chhota Udaipur, Gujarat.

NHPC has signed an MoU with Gujarat Power Corporation Limited (GPCL), a power generation company promoted by the Government of Gujarat.

Through the MoU, NHPC and Gujarat’s state government plan to develop and use pumped hydro storage projects as an effective solution for energy storage.

It also contributes to the national objective of clean and green energy, which includes achieving 500GW of renewable energy capacity by 2030 and a ‘Net Zero’ target by 2070.

Also, the proposed pumped hydro storage project in Gujarat is expected to create significant employment opportunities and boost the local economy.

NHPC is one of India’s leading hydropower companies, with a total installed capacity of 7,097.2MW of renewable energy, including wind and solar.

Currently, NHPC and its subsidiaries are engaged in the construction of 15 projects with an aggregate installed capacity of 10,449MW.

In a separate development, Ratle Hydro Electric Power Corporation Limited (RHPCL) has signed a Power Purchase Agreement (PPA) for the 850MW Ratle hydroelectric project in Jammu & Kashmir.

RHPCL, a joint venture between NHPC and Jammu and Kashmir State Power Development Corporation (JKSPDC) has the PPA with Rajasthan Urja Vikas and IT Services Limited.

Under the terms of the agreement, RHPCL will offtake power generated from the Commercial Operation Date (COD) of the project for a tenure of 40 years.

The power will be allocated as notified by the Government of India’s Ministry of Power.