The board of directors of Tata Power approved an investment of Rs 11,871 crore for an 1,800 MW pumped storage hydro project located at Shirwata in Maharashtra.
The initiative will add to the company's overall existing generation capacity, which currently stands at 16.9 GW operating at optimum capacity utilization levels. Construction and capacity addition for the project are scheduled to be completed within 51 months, according to a regulatory filing to the stock exchanges.
The project will be funded through a financial structure comprising 75 percent debt and 25 percent equity.
Regarding the strategic rationale behind the capital allocation, the company noted that the "Pumped Storage Hydro Project (PSP) will be instrumental in Renewable Energy Round the Clock (RE-RTC) applications, facilitating energy shifting, and contributing to decarbonize the hard to abate industries".