A recent news article has raised credible concerns about the techno-economic clearance granted by the Central Electricity Authority (CEA) for a large Pumped Storage Project (PSP) located within a protected area in the dense Western Ghats of Karnataka. The article, titled "Where is the hurry for the 2,000 MW Sharavati PSP in Western Ghats?", questions the rationale behind this fast-tracked approval for such a massive project in an ecologically sensitive zone.
Environmentalists in Karnataka view this hurried approval as a stark example of the lack of due diligence on the part of multiple regulatory agencies when it comes to endorsing high-impact projects in eco-sensitive areas. Constitutionally mandated agencies like the CEA are expected to scrutinize proposals for such projects, particularly in protected areas, with a comprehensive view of societal welfare—not just through the lens of limited technical parameters.
There is also an undercurrent of corruption allegations tied to this project. Reports suggest that the construction contract may have already been awarded to a private contractor, with a significant advance payment made, even before obtaining essential environmental, wildlife, and forest clearances.
This Sharavati PSP proposal, along with 14 other PSP projects planned for the Western Ghats, has faced widespread criticism from environmentalists throughout the region. These critics see these projects as a violation of the authorities' Constitutional mandate to safeguard the environment. There are serious concerns that these projects will easily clear regulatory hurdles, only to wreak irreversible damage on the Western Ghats, which are recognized for their unique and critical biodiversity.
Many environmentalists have expressed shock that key issues—such as the project’s location within a wildlife sanctuary, the potential destruction of tropical evergreen forests, the low capacity utilization of the PSP, and the availability of more sustainable alternatives—were seemingly overlooked by the CEA when approving the project.
As an electrical engineer and power sector professional with nine years of experience at the CEA, I find it difficult to understand how this project could have been granted techno-economic clearance. Even from a purely economic standpoint, the approval of a PSP of this magnitude appears misguided. It seems evident that a thorough cost-benefit analysis of more credible alternatives, such as Battery Energy Storage Systems (BESS), was not carried out before the clearance was given. Furthermore, it’s clear that domain experts from civil society were not effectively consulted during the decision-making process.
In strategic policy matters like this, it is hard to see how the government’s actions align with the Prime Minister’s vision of “Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas” (Together with all, Development for all, Trust of all, Effort of all).
Larger national concerns also loom over this issue, with media reports indicating that the Ministry of Power is considering the construction of 115,000 MW of PSPs across the country. This scale of development could lead to incalculable ecological damage, which our already fragile ecosystems may not be able to withstand.
CEA should publish a policy paper justifying the need for PSPs, detailing the costs and benefits relative to alternatives like BESS
Given the lack of a diligently prepared national energy policy from bodies like NITI Aayog, unsubstantiated energy policies—such as the promotion of PSPs, Small Modular Reactors (SMRs), gas-based power plants, and large solar and wind farms—are likely to face increasing opposition from civil society groups. These projects, along with new coal mines and transmission lines, raise serious questions about their long-term environmental and economic impacts.
It is imperative that the Union government takes these concerns seriously and applies effective course corrections before public trust in the regulatory agencies erodes further. Unfortunately, none of the responsible agencies or ministries have provided satisfactory responses to the issues raised by civil society, and there is no clarity on why experts from these groups are consistently excluded from discussions on such critical matters.
As a first step, the CEA should publish a policy paper justifying the need for PSPs, detailing the costs and benefits relative to alternatives like BESS, and explaining how the national electricity supply-demand scenario could be addressed through demand-side management (DSM) and other measures. The paper should also discuss how PSPs can be justified in the context of India’s rapidly degrading forest and river ecosystems, which are already in an alarming state of decline.
Addressing the issues raised in representations to the Ministry of Environment, Forest, and Climate Change (MoEF&CC) about the Sharavati PSP, as well as the broader relevance of PSPs for India, would be a crucial step toward finding a more balanced and sustainable energy policy.
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*Power & Climate Policy Analyst, Karnataka. This article is based on the author’s representation to the Union Minister for Power
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