The Government of Andhra Pradesh has approved allocation of the 2,250 MW Gandikota-2 Pumped Storage Project (PSP) in YSR Kadapa district to Adani Hydro Energy Eleven Ltd. (AHE11L). The project, to be developed by the Adani Group under the Andhra Pradesh Integrated Clean Energy Policy 2024, is set to be one of the largest pumped storage facilities in India and a key component of the State's next-generation power infrastructure strategy.
The approval follows clearance from the State Investment Promotion Board (SIPB), chaired by Chief Minister N. Chandrababu Naidu.
The Gandikota-2 PSP will be located within the Lord Balaji Donthi Kona PSP Park in YSR Kadapa district. The project is expected to significantly enhance Andhra Pradesh's renewable energy balancing and storage capabilities, while supporting the State's expanding ecosystem in green hydrogen, advanced manufacturing, electric mobility, and AI-driven data centres.
Globally, pumped storage is increasingly seen as the backbone of renewable-heavy power systems, enabling reliable, round-the-clock clean energy by storing surplus solar and wind power during off-peak periods and releasing it during peak demand.
India is witnessing rapid growth in pumped storage capacity as it accelerates large-scale renewable integration. Government data shows Andhra Pradesh has emerged as a leading destination for such projects, with a substantial pipeline under development.
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The Adani Group has been expanding its pumped storage portfolio nationwide as part of its broader energy transition strategy, with projects across multiple states including Andhra Pradesh, Maharashtra, and Uttar Pradesh.
Andhra Pradesh has already become a key hub for the Group's clean energy investments, spanning pumped storage and renewable infrastructure. Experts view large-scale storage assets like Gandikota-2 as critical to India's future energy ecosystem, particularly for powering energy-intensive digital infrastructure such as hyperscale data centres.
Under the allocation, the State has sanctioned 29.20 MCM of water for one-time initial filling and 2.20 MCM annually to offset evaporation losses from the Gandikota reservoir, subject to applicable guidelines.
The project will also be eligible for incentives under the Andhra Pradesh Integrated Clean Energy Policy 2024, which targets investments of nearly Rs 10 lakh crore and aims to generate around 7.5 lakh jobs across the clean energy value chain.
The State government reiterated that policy stability, fast-track approvals, robust transmission planning, and an integrated industrial and clean energy strategy continue to attract major investments.
The Gandikota-2 PSP is slated for completion within 72 months.
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