With an aim to bolstering its non-carbon energy sector, India is poised to invite private investments of $26 billion into its nuclear power industry. This marks a pioneering step for New Delhi in soliciting private involvement in nuclear energy, a vital component for reducing carbon emissions. With nuclear energy currently contributing less than 2% to India’s total electricity generation, the infusion of private capital aims to ramp up this capacity significantly.
According to sources within the government, discussions are underway with five major private firms, including Reliance Industries, Tata Power, Adani Power, and Vedanta Ltd, each expected to invest around $5.30 billion. These talks signify a strategic collaboration between the federal Department of Atomic Energy, the state-run Nuclear Power Corp of India Ltd (NPCIL), and private enterprises to propel India towards its ambitious target. By 2030, India aims to have 50% of its installed electric generation capacity sourced from non-fossil fuels, up from the current 42%.
The proposed investment will facilitate the creation of 11,000 megawatts (MW) of new nuclear power generation capacity by 2040, enhancing India’s energy infrastructure. Under the plan, private companies will undertake investments in the construction of nuclear plants, land acquisition, and related infrastructure. However, the operation and fuel management of these stations will remain under the purview of NPCIL, in accordance with existing legislation.
This innovative hybrid model of nuclear power project development is hailed by industry experts as a pragmatic solution to expedite capacity expansion. Charudatta Palekar, an independent power sector consultant, lauds the approach as an effective means to accelerate nuclear capacity growth.
While this initiative does not necessitate amendments to existing legislation, it awaits final approval from the Department of Atomic Energy. Notably, Indian law prohibits private entities from establishing nuclear power plants but permits their involvement in ancillary activities such as supplying components and equipment.
India’s endeavor to augment its nuclear power capacity has faced challenges in the past, including procurement issues related to nuclear fuel supplies. However, agreements such as the 2010 deal with the United States for reprocessed nuclear fuel have provided avenues for progress. Additionally, India’s stringent nuclear compensation laws have posed hurdles in negotiations with foreign power plant builders.
