EAC reclassifies Greenko and Panari pumped storage projects from closed-loop to open-loop
The Expert Appraisal Committee (EAC) for River Valley & Hydroelectric Projects has reclassified two proposed pumped storage projects (PSPs), the 2000 MW Nayagaon PSP by Greenko and the 1800 MW Panari PSP by Panari Energy Private Limited, from “closed-loop” to “open-loop” projects.
According to the EAC minutes, a closed-loop PSP is an off-stream system in which both reservoirs are located away from river systems and water is circulated cyclically. Open-loop PSPs, by contrast, involve reservoirs connected to natural streams or nallahs, potentially affecting river hydrology and ecology.
For the Nayagaon PSP in Chhatrapati Sambhajinagar district, Maharashtra, proposed by Greenko MH01 Irep Private Limited, the committee observed that while the upper reservoir was away from river systems, the lower reservoir was proposed across a seasonal nala connected to the Hivra Nadi.
Similarly, for the Panari PSP in Satna and Panna districts of Madhya Pradesh, proposed by Panari Energy Private Limited, the committee noted that the lower reservoir was proposed within an existing seasonal tributary linked to the Baghain Nadi.
Based on these findings, the EAC concluded that both projects should be treated as open-loop PSPs.
Regulatory impact
Following the reclassification, both projects will no longer qualify under the simplified Terms of Reference (ToR) applicable to closed-loop PSPs issued by the Ministry on August 14, 2023.
Instead, the projects will now be governed by the more stringent ToR framework for open-loop PSPs. This includes cumulative river basin impact studies, downstream flow assessments, aquatic ecology and fish migration studies, and mandatory public hearings with expanded scope.
The revised requirements also include submission of 10-year water availability data certified by the Central Water Commission (CWC) or State Water Resources Department, along with ecological flow management plans for downstream water release.
Fresh TOR process
The EAC also observed that the earlier ToRs issued to both projects in April 2020 had expired under the five-year validity rule notified through Gazette Notification S.O. 751(E) dated February 17, 2020.
As a result, the environmental clearance applications submitted in April 2026 were rejected, requiring both developers to submit fresh ToR applications under the revised open-loop classification.
Project-specific concerns
In the case of the Nayagaon PSP, the committee raised concerns regarding district jurisdiction. While the project proponent stated that the project is entirely located in Chhatrapati Sambhajinagar district, earlier online filings suggested possible overlap with Jalgaon district. The EAC directed the developer to obtain certification from both district administrations.
For the Panari PSP, the committee noted that the project falls within the National Tiger Conservation Authority (NTCA)-recognized North-Eastern Tiger Corridor connected to the Panna Tiger Reserve. Although wildlife clearance is currently pending before the National Board for Wildlife (NBWL), the open-loop classification is expected to increase scrutiny of ecological impacts in the corridor area.
Additional conditions
The EAC imposed several additional conditions while granting the revised open-loop ToRs for both projects.
These include environmental cost-benefit analysis covering biodiversity and forest loss, greenhouse gas emission estimates over the project lifecycle, conservation plans for natural streams and aquifers, and restrictions on muck disposal locations.
For the Nayagaon PSP, the committee also mandated a site inspection by an EAC Sub-Committee before any environmental clearance is granted.
Sector implications
The reclassification is expected to have wider implications for India’s pumped storage sector, where several developers have proposed closed-loop projects to simplify environmental approvals.
The EAC’s decision indicates that even seasonal nallahs and non-perennial streams may attract open-loop classification if reservoirs interact with natural drainage systems.
Both Greenko and Panari Energy Private Limited are now expected to revise their environmental impact assessment (EIA) and Environment Management Plan (EMP) reports and undertake fresh public hearings under the open-loop framework, which could extend project timelines.
The featured photograph is for representation only.
