2025
Madhya Pradesh Pumped Hydro Storage (PHS) Project Scheme
Unlock Growth Opportunities with robust infrastructure, investor-friendly policies, and a thriving industrial ecosystem, MP offers a strategic gateway for businesses across diverse sectors.
Introduction
Introduction to the Scheme & How Sharda Associates Helps You
Madhya Pradesh is emerging as a leader in renewable energy with the launch of the Madhya Pradesh Pumped Hydro Storage (PHS) Project Scheme. This scheme aims to harness the state’s rich hydro resources to create large-scale energy storage capacity, supporting the integration of renewable energy into the grid and ensuring stable power supply.
At Sharda Associates provides specialized consultation to businesses and developers seeking to create or expand pumped hydro storage facilities. Our complete services include project feasibility assessment, financial planning, subsidy advice, land acquisition, licensing, and operational assistance. We advise clients through the entire process, assuring regulatory compliance, financial feasibility, and effective project implementation. Our team’s extensive industry experience helps to maximize subsidies and operational efficiency, ensuring that your project is both sustainable and lucrative. We offer bespoke solutions to match your individual objectives, with an emphasis on risk minimization and return maximization. Partner with us for a seamless, expert-driven pumped hydro storage project development.
Narendra Modi
Prime Minister India​
Dr. Mohan Yadav
Chief Minister Madhya Pradesh
Benefits
Key Incentives and Government Benefits:
The policy offers substantial incentives for companies setting up logistics and warehousing units in Madhya Pradesh. Below are the major benefits:
1. Electricity Duty Exemption
- Get 100% exemption for 10 years from commissioning, maximizing savings on your pumped hydro project.
2. Stamp Duty Reimbursement
- Get 65% off stamp duty on private land purchases, cutting costs for your pumped hydro project.
3. Wheeling Charges Waiver
- 50% waiver on wheeling charges for 5 years; no charges for supply to MPPMCL.
4. Government Land Subsidy
- Land is available for Mode-III projects at a 35% discount from the guideline cost, making them affordable.
3. Wheeling Charges Waiver
- 50% waiver on wheeling charges for 5 years; no charges for supply to MPPMCL.
4. Transport & Freight Assistance
- Land available at 35% of guideline rate for Mode-III projects.
5. Registration & Facilitation Fee Exemption
- Get a 20% discount on registration and facilitation fees, cutting costs for your pumped hydro project.
6. Rehabilitation & Resettlement Support
- Financial assistance for land acquisition and resettlement.
7. Carbon Credits
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8. Tax Benefits
- Enjoy a 10-year exemption from the Energy Development Cess, which promotes sustainable growth and lowers prices.
7. Carbon Credits
- Developers can claim carbon credits for reducing emissions.
8. Tax Benefits
- Exemption from energy development cess for 10 years.
How Sharda Associates Simplifies Your Investment Journey
Journey
Journey
How Sharda Associates Simplifies Your Investment Journey
bussiness
Eligible Investors & Investment Opportunities
The policy is open to domestic and international investors, focusing on:
• Renewable Energy Companies
Restructuring
Why Partner with Sharda Associates?
We are not just consultants; we are your strategic partners. Our team of seasoned Chartered Accountants and financial experts ensures that your investment aligns with the best opportunities Madhya Pradesh has to offer. We bring clarity to complex policies and help you maximize your benefits under state incentives.
Investment
Investment Opportunities:
- On-River and Off-River PHS Projects
- Hybrid Renewable Energy (Solar + PHS) Projects
- Captive PHS Projects for Industrial Use
- Power Exchange-Linked PHS Projects
- PPP-Based PHS Projects
- Grid Stability and Reliability
- Environmental and Economic Benefits
Highlights
Key Highlights of the Policy
- State’s Hydro Potential: Madhya Pradesh has an estimated on-river hydro potential of 7 GW.
- Modes of Project Development:
- Mode-I: Allotment to CPSUs and State PSUs on a nomination basis.
- Mode-II: Projects developed for power exchange or captive consumption.
- Mode-III: Projects developed for power procurement by MPPMCL through competitive bidding.
- Mode-IV: Self-identified off-stream projects.
- Right of First Refusal: MPPMCL has the right to purchase up to 100% of the capacity under Mode-I and 50% under Mode-IV.
- Single-Window Clearance: Fast-track approvals and simplified procedures.
- Green Energy Push: Priority for projects that use renewable sources for input power.
- Flexible Tariff Models: Tolling tariff and composite tariff models available.