The Narmada Hydroelectric Development Corporation (NHDC) will build a 525 MW pumped storage project near Indira Sagar Dam in Khandwa district of Madhya Pradesh using the existing reservoirs of Indira Sagar and Omkareshwar. The project is expected to cost Rs 4,200 crore.

The Department of New & Renewable Energy, Government of Madhya Pradesh, has awarded the project to NHDC.

The pumped storage project will enable the state government to meet peak hour renewable energy demand and will generate 1,226.93 million units of energy during peak hours in the state. Likewise, there is a potential for 11.2 GW of pumped storage projects in the state.

Presently, the Indira Sagar (1,000 MW) and Omkareshwar power stations (520 MW) of NHDC are in operation in the Khandwa district.

NHDC seeks to make the state green through the production of green energy by constructing solar power projects in Madhya Pradesh. Currently, the construction of an eight MW solar project in Sanchi and an 88 MW floating solar project on Omkareshwar Reservoir are in progress.