The Alleri Pumped Storage Project, planned as an 1,800-MW facility in Anaicut Taluk of Vellore district, is being developed by Adani Hydro Energy Fourteen Limited (AHE14L), a wholly owned subsidiary of Adani Green Energy Limited.

The project has not yet received environmental clearance. However, its proposed footprint is already becoming clear.

Two new reservoirs have been planned, along with dams, tunnels, an underground powerhouse and new access roads. The proposal requires more than 337 hectares of land, including over 228 hectares of forest land.

For tribal communities living across villages in the Jawadhu Hills region, that is enough to raise a difficult question:

What will happen to their homes, forests, water sources and livelihoods if the project eventually goes ahead?

The 1,800-MW Project

The Alleri project was initially conceived as a 1,500-MW pumped storage facility before being expanded to its current proposed capacity of 1,800 MW.

The project is planned with six units of 300 MW each.

Its proposal includes two new reservoirs:

• An upper reservoir near Nellimarathukollai
• A lower reservoir near Sivanathapuram

The system is designed to store electricity in the form of pumped water.

During periods of low electricity demand, water would be pumped from the lower reservoir to the upper reservoir. During peak-demand hours, the stored water would be released back through turbines to generate electricity.

The project is estimated to generate around 3,840 million units of electricity annually, with generation planned for approximately 6.15 hours a day.

The current estimated cost of the Alleri project is ₹10,094.03 crore.

2024 Adani Investment MoU

The Alleri project emerged from a larger investment commitment signed during the Tamil Nadu Global Investors Meet in January 2024.

On January 7, 2024, the Government of Tamil Nadu and Adani Group signed a Memorandum of Understanding for investments worth ₹24,500 crore covering three pumped-storage projects:

• Alleri
• Thenmalai
• Aliyar

Together, the three proposed projects were expected to have a combined capacity of 4,900 MW, with investments planned over five to seven years.

The distinction between these figures is important.

₹24,500 crore was the proposed investment commitment covering all three pumped-storage projects under the 2024 MoU.

The current estimated cost of the Alleri project alone is ₹10,094.03 crore.

Alleri was subsequently taken forward as an 1,800-MW project.

More Than 337 Hectares of Land Required

According to the project’s April 2026 Pre-Feasibility Study Report, the proposed development would require a significant intervention in the Arasampattu Reserve Forest landscape.

The total land requirement is estimated at 337.452 hectares.

Of this, approximately 228.352 hectares is forest land.

The project would involve:

• Two dams
• Two reservoirs
• An underground powerhouse
• Pressure tunnels
• Tailrace tunnels
• Construction facilities
• Access infrastructure

The proposal also includes approximately 15 km of new roads and the strengthening of another 5 km of existing roads to provide access to different project components.

For a large pumped-storage project, the infrastructure footprint extends well beyond the electricity-generating facility itself.

Reservoirs, dams, roads, tunnels and construction activity could collectively alter parts of the surrounding landscape.

Why Are Jawadhu Hills Villagers Already Afraid?

The project has not yet received environmental clearance.

There has also been no final approval confirming that construction can begin.

Yet villagers living around the proposed project area are already worried.

The reason is uncertainty.

Specific locations have been identified for the reservoirs. The land requirement has been calculated. The forest land involved has been identified. The project’s engineering infrastructure has been proposed.

In other words, the project may still be awaiting approval, but it is no longer just an idea.

For communities living around the proposed project area, the planning process has already entered their landscape.

Villagers reportedly know little about the project in detail. They know that something significant is being planned around their forests and settlements, but they fear they could eventually be affected by a development whose full implications they do not yet understand.

Their concerns are centred around a simple question:

Fear of Uprooted Lives, Even Without a Confirmed Displacement Order

For tribal communities whose lives are closely connected to the surrounding natural landscape, changes to forests and water systems can have consequences that go far beyond the physical land occupied by a project.

There is no basis at this stage to state that all villages around the project will be displaced.

The project documents indicate that the selected site was intended to avoid resettlement and rehabilitation issues.

However, villagers fear that a large infrastructure project could still change their lives directly or indirectly.

Their concerns are about the impact on:

• Access to forests
• Local water resources
• Movement within the region
• Roads and surrounding land
• Agricultural activity
• Forest-dependent livelihoods
• The wider ecological landscape

This is why fear has emerged even before the final approval stage.

Alleri Project Still Awaits Environmental Clearance

The proposed project has not yet received environmental clearance.

The Union government’s Expert Appraisal Committee for River Valley and Hydroelectric Projects has recommended the project’s Terms of Reference (ToR).

This is an important distinction.

A ToR recommendation is not the same as environmental clearance.

It represents an early stage in the environmental appraisal process and requires the project developer to undertake detailed environmental studies before the proposal can be considered for final environmental clearance.

The approval process will require further examination of the project’s potential impact.

What Studies Has the Committee Requested?

The Expert Appraisal Committee has sought detailed information and studies on several environmental issues.

These include:

Water availability

A study on water availability and usage covering a 10-km radius around the project area.

Forest compensation

A compensatory plantation plan prepared in consultation with the Forest Department.

Forest ecosystem services

An assessment of the ecosystem services provided by the forest land proposed for diversion.

Cost-benefit analysis

An analysis that takes into account the value of forest ecosystem services that could be affected.

Reduction of forest-land requirement

An examination of whether the project can be designed or modified to reduce its forest-land requirement.

Aquatic biodiversity

A detailed study of aquatic biodiversity.

Greenhouse-gas emissions

An assessment of greenhouse-gas emissions associated with the project.

Wildlife-related requirements

The project will also require the necessary wildlife-related assessments and certification.

These requirements underline the fact that the project is still undergoing environmental examination.

Forest Clearance Is Also Still Pending

The project proposal requires the diversion of approximately 228.352 hectares of forest land.

This will require forest clearance.

The Expert Appraisal Committee noted that the developer had not yet submitted the Stage-I forest-clearance proposal and directed it to initiate the required process.

This means the project still has significant regulatory stages to cross before it can move towards construction.

The environmental and forest clearance processes could require further studies, modifications, safeguards or changes to the project proposal.

What Could the Project Mean for Jawadhu Hills?

For Tamil Nadu’s energy sector, pumped-storage projects are increasingly important as the state expands renewable energy capacity.

Solar and wind generation can vary depending on weather and time of day. Pumped-storage projects can help store energy and release electricity during periods of high demand.

From that perspective, the proposed Alleri project represents a major energy-storage investment.

But for Jawadhu Hills, the project presents a more complicated question.

The same landscape being assessed for a large electricity-storage project is also a region of forests, water systems, wildlife and tribal settlements.

The challenge will be determining whether a project of this scale can move forward without causing disproportionate environmental and social consequences.

The Real Question Is Yet to Be Answered

The Alleri Pumped Storage Project is not yet a dam under construction.

It is still a proposed project undergoing the environmental appraisal process.

But its scale is already clear.

An 1,800-MW power project. Two new reservoirs. More than 337 hectares of land. Over 228 hectares of forest land. Dams, tunnels, an underground powerhouse and new roads.

For the villagers of Jawadhu Hills, these are not merely numbers in a project report.

They represent a possible transformation of the landscape around them.

The project may ultimately receive approvals, be modified, face additional conditions or undergo further changes during the regulatory process.

For now, however, one thing is clear.

The villagers may not know every technical detail of the Alleri project, but they know something massive is being planned around them. Their fear is that, if the project goes ahead, they may be the ones asked to live with the consequences.

The Madras High Court has sought a response from the Tamil Nadu government regarding a recent Government Order (GO) that significantly alters how housing layouts and developments are approved in ecologically sensitive hill areas.

The issue is about a recent Government Order (GO) that makes it easier to get approval for housing layouts, land-use changes, and building projects in areas that were earlier strictly monitored by the Hill Area Conservation Authority (HACA).

Earlier, most developments in these sensitive hill regions required approval from HACA to ensure environmental protection. But under the new system, many of these approvals can now be given directly by planning authorities, reducing the role of HACA.

The case, filed as a Public Interest Litigation (PIL), challenges the dilution of environmental safeguards following procedural changes introduced under this new policy framework.

📜 What the New Government Order Changes

The Government Order (Housing & Urban Development Department, 2026) introduces a major shift in how development permissions are handled in areas governed by the Hill Area Conservation Authority (HACA).

Historically, HACA functioned as a mandatory clearance body for developments across 597 revenue villages in 16 districts . The new GO restructures this system.

This Feb 2026 Government Order brings a major change to how approvals are handled in hill areas under HACA.

Earlier, most developments required mandatory HACA approval across 597 villages . Now, the system is more decentralised and flexible.

🧭 1. Size-Based Approval System

• Land-use change up to:
  • 2 hectares (urban)
  • 4 hectares (rural)
    👉 No HACA approval needed
• Larger projects:
  👉 Still require HACA review

🏗️ 2. No HACA Clearance for Layouts

• Layout approvals can now be given directly by planning authorities
• This is the biggest change in the GO

🔄 3. Fewer Approvals (NOCs Reduced)

• Removed:
  • RDO (Revenue Divisional Officer) NOC
    • Justification: Land records can be verified digitally
  • Agricultural Engineering Department NOC
    • Reason: Parameters already covered by Geology & Mining Department

⚠️ Conditional NOCs:

• Forest Department NOC
  • Still required in most cases, especially where:
    • Land-use conformity with Master Plan is involved
    • Development is in non-plan areas
• Geology & Mining NOC
  • Not required:
    • For developments within approved layouts
    • In certain non-hill-station areas

🔁 4. No Duplicate Clearances

• Once approvals are taken at one stage,
  👉 they don’t need to be repeated later

🌄 5. Different Rules for Different Hill Areas

• Hill stations (Ooty, Kodaikanal) → slightly stricter
• Other hill areas → more relaxed rules

🏛️ 6. Power Shift to Local Authorities

• More control given to:
  👉 DTCP and planning bodies
• Less dependence on HACA

🌄 HACA’s Role Reduced: From Gatekeeper to Limited Oversight

Under the previous framework, nearly all development proposals required prior approval from HACA, ensuring ecological considerations were central to planning decisions.

However, the new policy introduces a Project size–driven-based approach, where only large-scale projects are routed through HACA, while smaller developments are processed like regular non-hill area projects.

This effectively transforms HACA into a selective oversight body rather than a universal regulator.

⚠️ Why the Policy is Being Challenged

The PIL argues that the GO weakens environmental protection mechanisms in fragile hill ecosystems.

Key Concerns Raised:

• Bypassing HACA for layouts could lead to unregulated construction
• Absence of scientific or environmental impact studies
• Potential violation of:
  • Article 21 (Right to Life – includes environmental protection)
  • Article 48A (State’s duty to protect environment)

The High Court has taken cognizance of these concerns and directed the state to respond.

🏗️ Impact on Real Estate Development in Hill Regions

This policy shift directly impacts key hill markets such as:

• Nilgiris (Ooty, Coonoor, Kotagiri)
• Kodaikanal region
• Yercaud (Salem district)
• Elagiri (Tirupattur)

Positive Implications:

• Faster approvals
• Reduced bureaucratic delays
• Increased investor interest

Risks:

• Legal uncertainty due to ongoing litigation
• Environmental compliance risks
• Potential future cancellation or stricter regulation

⚖️ Development vs Environment: The Core Debate

At its heart, this issue reflects a broader policy tension:

The outcome of this case could set a precedent for how India balances growth with environmental conservation in sensitive zones.

🔍 What Happens Next?

The Tamil Nadu government is expected to submit its response to the Madras High Court in the coming weeks. Until then, the future of this policy remains uncertain.

Developers and investors are advised to proceed cautiously, especially in projects that rely on the relaxed approval norms introduced under the GO. Any major investment decisions should factor in the possibility of regulatory changes or court-imposed restrictions. Projects approved under the new rules may also face delays or legal challenges if the policy is modified or struck down.

Chennai’s Pallikaranai marsh, a sensitive ecological wetland and major stormwater buffer for southern suburbs, has become the centre of a high-stakes legal battle. The Madras High Court is scrutinising a residential project by Brigade Enterprises Limited, with multiple petitions alleging it encroaches on protected wetland land and was granted clearances without proper environmental checks.

Ground Truthing: Court Holds Fire in Early December

On December 4, 2025, the Madras High Court made it clear that it would not decide the public interest litigation (PIL) challenging the residential project until it examined the official ground-truthing report — a scientific survey meant to confirm the actual boundary of the Pallikaranai marsh. This ground-truthing was ordered by the Supreme Court to resolve uncertainty over where the Ramsar-designated wetland truly lies before any development decisions are finalised.

A ground-truthing exercise means a physical, on-site verification carried out by authorities to confirm the actual condition and boundaries of land on the ground, rather than relying only on maps, satellite images, or paper records.

The PIL, filed by advocate J. Brezhnev, alleges that Brigade Enterprises was granted environmental clearance by the state environment authority on January 20, 2025, followed within days by planning permission from the Chennai Metropolitan Development Authority, despite the site being alleged wetland. The bench, led by Chief Justice Manindra Mohan Shrivastava, emphasised it must balance both sides and would await the ground truthing report before progressing further.

December 12 Update: Ground Truthing Completed, Report Forwarded

At the next hearing on December 12, the state government informed the court that the ground-truthing exercise was completed and that the resulting report was sent to the Chengalpattu district collector for authentication. Once certified, the report will be placed before the Supreme Court, which continues to oversee broader Ramsar site matters.

During this hearing, senior counsel for the Tamil Nadu Wetland Authority cautioned that accepting a one-kilometre “zone of influence” around the marsh, as argued by opponents, could sweep large swathes of southern Chennai into a no-development buffer, stalling growth along the OMR corridor — a point the court noted while managing competing interests.

New PILs in Mid-December: Broader Legal Pushback

Soon after the December 12 update, activists and civic groups including Arappor Iyakkam filed additional PILs in the Madras High Court. These petitions seek to quash the environmental and planning clearances granted to Brigade’s project on grounds that if the project site falls within the marsh or its influence zone, such approvals should be invalidated. The court ordered these new petitions to be tagged together with the original Brezhnev PIL, ensuring all legal arguments will be heard collectively.

Interim Order: Construction Still Halted

Since late October and into Dec-Nov hearings, the High Court maintained an interim stay on construction activity at the Brigade project site. This stoppage remains in place while the Court continues to consider scientific boundary proof and legal objections, preventing any further groundwork until a final judgement.

What’s Next

The case will progress once the authenticated ground-truthing report is on record and the Supreme Court’s input on the marsh’s official boundary and zone of influence is factored in. The Judge may then decide whether the project approvals are lawful, whether clearances must be made invalid, and whether the interim stay should continue or be lifted. You can catch up on everything that’s happened so far by reading the articles on the Verified.RealEstate Pallikaranai tag page.