HyderabadThe Andhra Pradesh government has approved the establishment of the 2,250 MW Gandikota-2 pumped storage project in YSR Kadapa district by Adani Hydro Energy Eleven Ltd (AHE11L) of the Adani Group under the Andhra Pradesh Integrated Clean Energy Policy 2024, an official statement said on Wednesday.Andhra clear AHE11L storage projectThe approval was accorded following clearance by the State Investment Promotion Board (SIPB), chaired by chief minister N Chandrababu Naidu, at its recent meeting, the statement said.“The project is expected to become one of the largest pumped storage projects in the country and a key pillar of Andhra Pradesh’s next-generation power infrastructure strategy,” it added.The Gandikota-2 pumped storage project (PSP) will come up at the Lord Balaji Donthi Kona PSP park in the district. The project is being seen as a critical enabler for India’s future energy economy and for supporting energy-intensive digital infrastructure such as hyperscale data centres.As part of the approvals, the state government sanctioned allocation of 29.20 million cubic metres (MCM) of water for one-time initial filling and 2.20 MCM annually towards evaporation losses from the existing Gandikota reservoir, subject to prevailing guidelines.The project will also be eligible for incentives under the Andhra Pradesh Integrated Clean Energy Policy 2024, which targets investments worth nearly ₹10 lakh crore and aims to generate employment for approximately 7.5 lakh people across the clean energy value chain, the statement said. It added that the Gandikota-2 PSP is scheduled to be completed within 72 months.According to officials, pumped storage projects are increasingly being viewed globally as the backbone of renewable-heavy power systems, enabling stable, round-the-clock clean energy by storing surplus solar and wind power during off-peak hours and releasing it during peak demand periods.The Adani Group has also been expanding its national pumped storage portfolio as part of its broader renewable energy and energy transition strategy, with projects across multiple states, including Andhra Pradesh, Maharashtra and Uttar Pradesh.“Andhra Pradesh has already emerged as a major destination for Adani Group’s clean energy investments, including pumped storage and renewable energy infrastructure projects,” the statement added.