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Over the past year, the federal Department of Atomic Energy and the state-run Nuclear Power Corp of India Ltd (NPCIL) have engaged in several rounds of discussions with private companies regarding the investment plan, the sources revealed.
The Department of Atomic Energy, NPCIL, along with companies such as Tata Power, Reliance Industries, Adani Power, and Vedanta, did not respond to Reuters’ requests for comment.
The proposed investment aims to develop 11,000 megawatts (MW) of new nuclear power capacity by 2040, according to the sources, who requested anonymity as the plan is still being finalized. Currently, NPCIL operates India’s nuclear power plants, which have a combined capacity of 7,500 MW, with commitments for an additional 13,000 MW.
Under the proposed funding plan, private firms would invest in the nuclear plants, secure land and water resources, and handle construction outside the reactor complex. However, NPCIL would retain the rights to build, operate, and manage fuel for the plants, as stipulated by law.
Private companies are expected to generate revenue through electricity sales, while NPCIL would manage the projects for a fee. “This hybrid model of nuclear power project development is an innovative solution to accelerate the nuclear capacity,” commented Charudatta Palekar, an independent power sector consultant and former PwC employee.
The plan, which does not require any amendments to India’s Atomic Energy Act of 1962, is awaiting final approval from the Department of Atomic Energy, according to one of the sources.
While Indian law prohibits private companies from establishing nuclear power plants, it does allow them to supply components, equipment, and undertake construction work outside reactor sites.
India has historically struggled to meet its nuclear power capacity goals, mainly due to challenges in securing nuclear fuel supplies. However, a 2010 agreement with the United States has facilitated access to reprocessed nuclear fuel. Stringent nuclear compensation laws have also complicated negotiations with foreign builders like General Electric and Westinghouse, leading India to postpone its target of adding 20,000 MW of nuclear power from 2020 to 2030.
