Summary:
Tata Power approved an ₹11,871 crore investment in its 1,800 MW Shirwata pumped storage project in Maharashtra. Expected to be completed in 51 months, the project will support renewable energy integration, grid stability and the company's long-term energy storage expansion.
Tata Power Company (NSE: TATAPOWER) has approved an investment of ₹11,871 crore to set up a 1,800 MW pumped storage project in Shirwata, Maharashtra. The announcement was made on November 11, 2026, along with the company’s Q2FY27 financial results.
This is part of Tata Power’s drive into large-scale energy storage to help balance power supply as India’s renewable energy capacity grows.
Tata Power’s ₹11,871 Crore Project: Here’s What You Need To Know
Tata Power board approves investment in pumped storage project at Shirwata. Proposed capacity addition is likely to be completed in 51 months.
The project will be funded through a mix of debt and equity, where 75% of the investment will be funded through borrowings and the remaining 25% through equity.
| Project details | Information |
| Project name | Shirwata Pumped Storage Project |
| Location | Maharashtra |
| Proposed capacity | 1,800 MW |
| Total investment | ₹11,871 crore |
| Debt funding | 75% |
| Equity funding | 25% |
| Expected completion | 51 months |
The proposed funding structure will have debt of about ₹8,903 crore and equity of ₹2,968 crore.
The company now has installed generation capacity of about 16.9 GW. Once commissioned, the Shirwata project will add to this capacity.
Why Tata Power is betting on pumped storage?
Pump storage projects are not like traditional power stations.
When they have electricity they use it to pump water from a lower reservoir to an upper reservoir . Then when there is a high demand for electricity , the stored water is released to make electricity .
That means you can use power that was generated before you need it.
The technology is of particular use for solar and wind power. Solar generation is concentrated in the day and wind generation is dependent on weather conditions.
Pumped storage can help smooth out these variations and provide a more steady supply of electricity.
Such facilities do not create energy on a net basis, since pumping takes electricity. The main advantage is they can store energy and release it at a more useful time.
Tata Power’s project will help in round the clock renewable energy applications and grid stability.
Tata Power Q2FY27 Results & Growth Plans
The investment was unveiled as Tata Power reported its highest ever quarterly profit.
Consolidated profit after tax (PAT) grew 33% YoY to ₹1,652 crore in Q2FY27 against ₹1,245 crore in the year-ago period.
Revenue grew 26% to ₹19,886 crore, while Ebitda was up 5% at ₹4,245 crore.
Profit after tax increased by 22% YoY to ₹3,053 crore in H1FY27.
The company also spent ₹10,000 crore as capital expenditure in the first half of the financial year.
Tata Power is also moving ahead with the construction of its Bhivpuri pumped storage project, besides Shirwata.
The investments are a reflection of the company’s increasing focus on energy storage, renewable generation, transmission and distribution.​
Effect of the Project on Tata Power Shares?
The Shirwata announcement is a big long term capacity expansion but will not add to electricity generation revenues in the near term.
The project’s operation depends on construction, equipment procurement, regulatory approvals and commissioning.
Borrowing costs and capital expenditure are also important financial considerations given the proposed 75% debt funding.
When operational, the project’s contribution to earnings will depend on its commercial arrangements, utilization and operating costs.
Tata Power’s recent results demonstrate growth in its wider business and the Shirwata investment is another long-term infrastructure commitment.
The company’s final financial contribution will depend on its ability to complete the project in the proposed 51 months and manage its funding needs.
