Odisha cabinet clears Rs 4,708 crore Upper Indravati pumped storage, paddy policy

The Odisha cabinet on Monday, 9 November 2026, approved the 600 MW Upper Indravati Pumped Storage Project at Ranibahal in Kalahandi district at a total cost of Rs 4,708.64 crore, along with the state's paddy procurement policy for the 2026-27 kharif season, which promises farmers Rs 3,100 per quintal. The decisions were among 13 proposals from 10 departments cleared at the cabinet's 49th meeting in Bhubaneswar, chaired by Chief Minister Mohan Charan Majhi. The state-owned Odisha Hydro Power Corporation (OHPC) will build the pumped storage plant, with Megha Engineering and Infrastructures Ltd (MEIL) as the engineering, procurement and construction (EPC) contractor, and commissioning is planned by 2030-31.

A pumped storage plant works like a giant rechargeable battery made of water. When electricity is cheap and plentiful, often in the middle of the day when solar plants produce the most, water is pumped from a lower reservoir to an upper one. When demand peaks in the evening, the water is released to flow back down through turbines, generating power. As India adds large amounts of solar and wind power, which do not produce steadily through the day, storage of this kind becomes essential to keep the grid stable.

For Odisha, the Upper Indravati project adds 600 MW of capacity that can be switched on when demand peaks. It also brings construction work and investment to Kalahandi district in the years up to its planned commissioning in 2030-31.

The paddy policy touches far more households. For farmers who sell to the state, the procurement price and the speed of payment decide what they earn from the season. A price of Rs 3,100 a quintal and payment within 24 to 48 hours give them a known rate and quick cash. The procurement window began on 1 November and runs until the end of March.

The lift irrigation tender for Nuapada district adds to the cabinet's focus on water. Lift irrigation pumps water from rivers to fields on higher ground that canals cannot reach.

Peepals calculation: the pumped storage project costs about Rs 7.85 crore per megawatt (4,708.64 / 600 ≈ 7.85). Buying the full target of 78 lakh tonnes of paddy, which is 7.8 crore quintals, at Rs 3,100 a quintal would mean payments of about Rs 24,180 crore to farmers (7.8 crore × 3,100). The rice target of 53 lakh tonnes is about 68% of the paddy target by weight (53 / 78 ≈ 0.68). Our calculation from the reported figures.

Short-term: Paddy farmers selling to the state between November 2026 and March 2027 are promised Rs 3,100 a quintal and quick payment; OHPC and MEIL can move ahead with the pumped storage project.

Long-term: The 600 MW plant, due by 2030-31, will help Odisha balance a grid with more solar and wind power, while the Nuapada lift schemes are meant to bring irrigation to more farmland.

Who is affected: Paddy farmers across Odisha, residents of Kalahandi and Nuapada districts, OHPC and electricity consumers in the state.

What to watch next: The start of construction on the Upper Indravati project and the pace of paddy purchases and payments through the season ending on 31 March 2027.

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