Tata Power Approves ₹11,871 Crore Investment in 1,800 MW Pumped Storage Project in Maharashtra

Tata Power has approved an ₹11,871 crore investment in Maharashtra's 1,800 MW pumped storage project to strengthen renewable energy storage and generation capabilities.

Tata Power Approves ₹11,871 Crore Investment in 1,800 MW Pumped Storage Project in Maharashtra

Tata Power has approved a major investment of ₹11,871 crore ($1.25 billion) to develop a 1,800 megawatt (MW) pumped storage project at Shirwata in Maharashtra.

The company's board of directors has cleared the investment as part of its broader strategy to expand renewable energy infrastructure and strengthen India's energy storage capabilities.

The project is expected to be completed within 51 months. Once operational, it will support the integration of renewable energy into the electricity network by helping manage fluctuations in power generation and ensuring a more reliable electricity supply.

Tata Power's 1,800 MW Pumped Storage Project: Key Details

The proposed project at Shirwata will have an installed capacity of 1,800 MW and represents a significant addition to Tata Power's energy infrastructure portfolio.

The company plans to complete the development within 51 months, subject to the project schedule.

Here are the major details:

• Company: Tata Power

• Project location: Shirwata, Maharashtra

• Project type: Pumped storage hydropower

• Installed capacity: 1,800 MW

• Total investment: ₹11,871 crore ($1.25 billion)

• Expected completion: Within 51 months

• Funding structure: 75% debt and 25% equity

The project is expected to strengthen the company's position in India's growing energy storage market.

Project Financing: 75% Debt and 25% Equity

Tata Power plans to finance the ₹11,871 crore investment through a combination of debt and equity. According to the proposed funding structure, approximately 75% of the project cost will come from debt, while the remaining 25% will be funded through equity.

This financing arrangement will help the company distribute the investment requirements across different funding sources while supporting the development of the large-scale infrastructure project.

How the Pumped Storage Project Will Support Renewable Energy

Pumped storage hydropower is an important technology for managing electricity demand and improving the reliability of renewable energy systems.

These projects generally use two water reservoirs located at different elevations. During periods of surplus electricity, water is pumped from the lower reservoir to the upper reservoir. When electricity demand increases, the stored water is released through turbines to generate power.

Tata Power's proposed Shirwata project is expected to support round-the-clock renewable energy (RE-RTC) applications by enabling energy storage and shifting.

This capability can help address the intermittent nature of solar and wind power generation.

The project is also expected to contribute to the decarbonisation of hard-to-abate industries, which require reliable electricity and face challenges in reducing emissions.

Tata Power's Existing Generation Capacity Stands at 16.9 GW

The new investment builds on Tata Power's existing electricity generation portfolio. The company currently has an overall generation capacity of approximately 16.9 gigawatts (GW).

By developing the additional 1,800 MW pumped storage facility, Tata Power aims to strengthen its infrastructure and expand its capabilities in renewable energy integration and storage.

The investment also reflects the growing importance of energy storage solutions as India increases its renewable electricity capacity.

Tata Power Q2 FY27 Results: Net Profit Rises 48.58%

The investment announcement coincided with Tata Power's financial results for the second quarter of financial year 2026-27 (Q2 FY27).

The company reported a significant improvement in profitability, with its consolidated net profit increasing 48.58% year-on-year to ₹1,366.11 crore.

In the corresponding quarter of the previous financial year, Tata Power had reported a net profit of ₹919.44 crore. The latest performance indicates stronger profitability compared with the same period last year.

Revenue Increases 26.32% to ₹19,635.94 Crore

Tata Power also recorded healthy revenue growth during Q2 FY27. Its revenue increased by 26.32% year-on-year to ₹19,635.94 crore, compared with ₹15,544.91 crore in Q2 FY26.

The company also reported sequential growth in its financial performance:

These results highlight an improvement in both profitability and revenue during the reported quarter.

Tata Power Expands Investment Across Renewable Energy Infrastructure

The Shirwata pumped storage project forms part of Tata Power's wider capital investment strategy.

The company is directing investments towards several areas, including renewable energy capacity expansion, electricity transmission networks, energy storage systems and digital distribution infrastructure.

These developments are expected to support the changing requirements of India's electricity sector as renewable energy becomes a larger part of the country's power mix.

Large-scale storage projects such as Shirwata can play an important role in balancing electricity supply and demand while supporting the transition towards cleaner energy sources.

Conclusion

Tata Power's ₹11,871 crore investment in the 1,800 MW Shirwata pumped storage project marks a major step in strengthening India's renewable energy infrastructure. With completion targeted within 51 months, the project is expected to improve energy storage capabilities, support round-the-clock renewable power and contribute to industrial decarbonisation.