Pavan Korada 
New Delhi: Five pumped storage projects (PSPs), intended to bolster Andhra Pradesh’s position as a leader in India’s renewable energy sector, are facing accusations of violating laws designed to protect tribal communities and forest rights. There are growing concerns that tribal communities may face displacement and disenfranchisement, while the environment may suffer significant harm.
Allocations for these projects, with a combined capacity of 6,600 MW, were granted to private companies by the New and Renewable Energy Development Corporation of Andhra Pradesh Limited (NREDCAP), the state nodal agency, during the YSR Congress party government’s tenure between 2019 and 2024. However, strategically situated in the constitutionally protected “agency” areas of the north Andhra region – areas listed in the fifth schedule of the constitution – these are now the subject of scrutiny.
These projects include the Kurukutti PSP (1,200 MW) in Salur mandal and the Karrivalasa PSP (1,000 MW) in Pachipenta mandal – both in Parvathipuram Manyam district. The Pedakota PSP in the Ananthagiri mandal of the Alluri Sitarama Raju (ASR) district had its capacity increased from 1,500 MW to 1,800 MW in August 2024.
In the ASR district, Shirdi Sai Electricals has been allocated the Yerravaram PSP (1,200 MW) in Chintapalli and Koyyuru mandals, while the Aditya Birla Group has been allocated the Gujjili PSP (1,400 MW) in Ananthagiri mandal.
“We are shocked at the brazen manner in which these projects have been granted in open contempt of the law and various constitutional provisions applicable in the fifth schedule region. These include both the PESA [Andhra Pradesh Panchayats Extension to Scheduled Areas Rules] and the FRA [Forest Rights Act],” stated G. Rohit, state secretary of the Human Rights Forum (HRF) Andhra Pradesh, in a conversation with The Wire.
Specifically, Section 5 of the PESA mandates that before any land acquisition, the government must submit detailed project information to the Mandal Praja Parishad (MPP). This information is required to include a comprehensive project outline, detailing potential impacts, land acquisition specifics, information about possible new settlers and their societal impact, and proposed compensation for affected communities. The MPP is then legally obligated to consult with the affected gram panchayats (GPs) to gather their assessments and recommendations. Following this consultation, the MPP is to consolidate these recommendations and submit a final recommendation to the land acquisition officer, who is bound to either adhere to these recommendations or provide a detailed written justification for any divergence.
Furthermore, Section 6 of the FRA explicitly designates the gram sabha as the primary authority for initiating and overseeing the process of determining individual and community forest rights. This section mandates that the gram sabha must be involved from the very outset of any project that could potentially affect forest land or the rights of forest dwellers. Moreover, Section 4(d) of the FRA reinforces the Gram Sabha’s authority to regulate community forest resources and make decisions concerning wildlife and biodiversity protection, stipulating that all stakeholders must comply with these decisions.
HRF contends that this entire consultative process has been circumvented. “Regarding these PSPs, no information has been conveyed, no discussion has taken place, there has been no transparency, and adivasis in these areas have been deliberately kept in the dark,” Rohit alleged, emphasising the purported lack of consultation and consent from the tribal communities.
“Although leasing out land in the scheduled areas is governed by the Andhra Pradesh Land Transfer Regulation (LTR), the Supreme Court laid out in the Samata case of 1997 that private entities cannot undertake projects in the scheduled areas. Moreover, the government has not even bothered to hold a discussion and prior consultation on these projects in the Tribal Advisory Council (TAC) despite this being a statutory requirement,” Rohit added.
The sheer scale of land acquisition required for these five projects further exacerbates concerns about displacement and the potential loss of livelihoods for tribal communities. The total land slated for acquisition amounts to 2,260.85 acres, with the Yerravaram project requiring the largest portion at 735.63 acres, followed by Gujjili at 673.13 acres, Pedakota at 499.44 acres, Kurukutti at 422.99 acres, and Karrivalasa at 377.99 acres.
Beyond the issue of land acquisition, the projects’ reliance on local water sources has ignited serious concerns about water security and its potential impact on both the tribal communities that depend on these resources and downstream farmers.
“Adivasis in the scheduled areas are opposed to these projects because they rightly perceive them as being harmful to their livelihood and well-being. Each of these PSPs envisages an upper and lower reservoir, which in turn requires a fairly large amount of land,” Ramarao Dora, convenor, Andhra Pradesh tribal joint action committee (APAJAC) told The Wire, explaining the strong local opposition to the projects.
The water sourcing plans for each project vary. The Kurukutti and Karrivalasa PSPs are both slated to draw water from the Boduru Gedda river, which originates in Odisha and flows through Andhra Pradesh before joining the Suvarnamukhi river in the Nagavali river basin. These two projects will share a lower reservoir constructed on this river. The Yerravaram PSP, meanwhile, intends to source its water from a small, unnamed stream that flows between Yerravaram and Ganagula villages, eventually emptying into the Thandava reservoir.
The Gujjili PSP, initially conceived as an open-loop system drawing water from two minor streams that feed into the Sarda river, was subsequently redesigned as a closed-loop system in response to environmental concerns. It will now utilise water from the Konam reservoir, located 6.8 kilometers from the lower reservoir. The Konam reservoir, built on the Bodderu river, currently serves an irrigation area of 12,638 acres, and the Chitravathi balancing reservoir will function as the lower reservoir for this PSP.
Similarly, the Pedakota PSP’s water source was also altered due to environmental considerations. Initially designed as an open-loop system with its lower reservoir on the Bodderu river (a tributary of the Sarada river), it was revised to a closed-loop system, also intended to use the Konam reservoir as its water source, ostensibly to preserve the natural flow of the Bodderu river.
Despite the redesign of the Gujjili and Pedakota PSPs as closed-loop systems, environmental concerns persist. While the Pedakota project was redesigned as a closed-loop system, the expert appraisal committee (EAC) continues to consider it an open-loop project due to the location of its lower reservoir on the Bodderu river. The EAC has consequently recommended that the project proponents prepare a detailed project report (DPR) treating it as an open-loop system for the necessary approvals from the central electricity authority (CEA) and the central water commission (CWC).
“What is also alarming is that these projects involve drawing water from local sources that are used by Adivasis for their sustenance – for domestic needs and agriculture. It was clear to us that the streams and water bodies from which this withdrawal will take place are part of the catchment for various reservoirs. In effect, this will negatively impact water security of not just the Adivasis in the vicinity of the project areas, but also farmers in the plains,” Rohit said, underscoring the broader implications of the projects’ water demands.
Currently, the DPRs for all the five projects are in the finalisation stage. However, the Kurukutti and Karrivalasa projects are facing additional hurdles in the form of border disputes with the neighbouring state of Odisha, while work on the Yerravaram project has been temporarily halted due to strong local opposition.
The push to develop these pumped storage projects comes at a time when India, the world’s fourth-largest producer of renewable energy, is aggressively pursuing ambitious targets to expand its clean energy capacity. The country aims to reach 500 GW of renewable energy capacity by 2030 and is committed to meeting at least half of its energy needs through non-fossil fuel sources. Further reinforcing this commitment, at the CoP 26 summit in Glasgow in 2021, India pledged to achieve “Net Zero” emissions by 2070. Pumped storage projects are seen as a crucial technology for achieving these goals, offering a viable solution for storing excess energy generated from intermittent renewable sources like solar and wind power.
Andhra Pradesh, in particular, holds significant potential in this area, boasting the highest pumped storage potential in India. The state has identified 44 GW of potential pumped storage capacity and has already allocated 19.83 GW to developers across 38 projects to date. This aggressive push for PSP development is reflected in the Andhra Pradesh pumped storage power promotion policy, a government order passed in December 2022, designed to streamline and ease the approval process for these projects. The policy stipulates that any acquisition of forest land required for these projects will adhere to the guidelines established by the respective department or prevailing law, a provision that is now at the center of the ongoing controversy.
PSPs, also known as pumped hydro storage, are sophisticated hydroelectric energy storage systems that utilise two water reservoirs situated at different elevations. These systems are designed to address the inherent challenge of intermittency associated with renewable energy sources such as wind and solar power. They function by storing excess energy generated during off-peak hours and releasing it when electricity demand is high or when renewable generation dips.
The operational cycle involves using surplus electricity to pump water from a lower reservoir to an upper reservoir, effectively storing energy in the form of potential energy. When power is needed, the stored water is released and flows downhill through turbines, generating electricity in the process. Although this cycle inevitably involves some energy loss, PSPs offer a cost-effective and scalable method for maintaining grid stability and ensuring a reliable power supply. In India, PSPs are considered to play a vital role in integrating large-scale renewable energy into the national grid, thanks to their efficiency, scalability, and the country’s favourable geographical conditions for such projects.