TNIDB invites bids for transaction advisor to develop 2,400 MW Aliyar Pumped Storage Project on PPP mode

Sources in TNGECL said Aliyar would be the first PSP to be developed under the PPP model in the State. “Bids for the project will be invited shortly,” the sources said.

Author :  DTNEXT Bureau
Update:2025-10-26 19:20 IST

 The Aliyar dam

CHENNAI: The Tamil Nadu Infrastructure Development Board (TNIDB) has invited proposals from empanelled consultants for the selection of a Transaction Advisor to assist in developing a 2,400 MW Pumped Storage Project (PSP) at Aliyar on a Public-Private Partnership (PPP) basis.

The project, to be implemented by the Tamil Nadu Green Energy Corporation Limited (TNGECL), aims to enhance renewable energy management through the development of large-scale energy storage infrastructure.

The Aliyar Pumped Storage Project, planned across the Aliyar River in the Bharathapuzha River basin, will utilise the hydraulic head available between the existing upper and lower Aliyar reservoirs. The facility is designed to meet peak power demand for six hours daily, with seven hours of off-peak pumping.

Sources in TNGECL said Aliyar would be the first PSP to be developed under the PPP model in the State. “Bids for the project will be invited shortly,” the sources said.

The next in line would be the 1,100 MW Vellimalai Pumped Storage Hydroelectric Project in Kanniyakumari, and tenders are expected to be floated soon, an official said.

The Vellimalai project envisages the construction of an upper dam on a rocky ridge near Maruvattar Kunnu in Thovalai, across a minor nallah (stream) draining into the Pazhayar River. The lower dam is proposed to be located upstream of the existing Mambazhathuraiyar reservoir at Villukuri in Kalkulam, across a nallah draining into the Valliyar River. The proposed PSP is expected to generate 1,100 MW of peak power for about six hours daily.

A senior official of Tangedco said pumped storage systems offer a more cost-effective and reliable energy storage solution compared to battery-based alternatives.

“The surplus renewable energy can be used to pump water from the lower reservoir to the upper one. When required, the stored water can be released from the upper reservoir to generate power,” the official explained.

The Aliyar and Vellimalai projects are among 15 pumped storage schemes identified by TNGECL for development across the State. Of these, the 1,000 MW Upper Bhavani PSP has already been allotted to NTECL on a joint venture basis, and work on the Detailed Project Report (DPR) is under way.

For the remaining 14 projects, with a combined potential of 13,500 MW, the state government has granted in-principle approval for implementation under the PPP model.

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