Narmada Hydroelectric Development Corporation Ltd. (NHDC Ltd.) is going to construct a 525 MW Pumped Storage Project near Indira Sagar Dam, Khandwa, Madhya Pradesh using the existing reservoirs Indira Sagar and Omkareshwar of the Indira Sagar Project. The project is being undertaken, keeping in view the need for increasing peak hour demand of the state. With the increased renewable energy generated through this Pumped Storage Project, the energy needs of the state can be met during peak energy hours (morning and evening). The project will generate 1,226.93 million units of energy during peak hours.
The project is estimated to cost Rs. 4,200 crores. The Department of New & Renewable Energy, Government of Madhya Pradesh has allotted this project to NHDC Limited.
There is a potential for 11.2 GW of Pumped Storage Projects in the state of Madhya Pradesh. At present, two power stations of NHDC Limited, namely Indira Sagar Power Station (1000 MW) and Omkareshwar Power Station (520 MW) are in operation in the Khandwa district. 100 percent of the power produced by these power stations are supplied to the state of Madhya Pradesh.
NHDC plans to make the state a green state through the production of green energy with the construction of solar power projects. Construction of 8 MW solar project in the historic city of Sanchi and of 88 MW floating Solar Project on Omkareshwar Reservoir is in progress.