Japan International Cooperation Agency (JICA) will extend a ₹5,000-crore loan to a 1,000 MW pumped storage project in West Bengal, according to a statement from the West Bengal State Electricity Distribution Company.

The project (250MW x4) is coming up in the Ayodhya Hills in the State’s Purulia district.

The West Bengal Cabinet has approved a ₹6,922-crore cost for the power project.

A pumped storage power plant works as a large storage battery which generates power during peak periods and pumps water from a lower dam to an upper dam during low-demand off-peak periods.

The variable-speed technology developed in Japan facilitates adjustments to the output, a feature that is suitable for renewable energy, according to the JICA website.

The Japan International Cooperation Agency- funded project is scheduled for completion by 2027 starting with issuance of letters for consultancy by January 2019. This is West Bengal’s second such project.