Business barons go nuclear in the race for power

.

India’s Nuclear Energy Mission has attracted investment pledges by a bunch of private players  since it was announced in the union budget on February 1.

With an outlay of Rs 20,000 crore, the mission aims to achieve a nuclear power generation capacity of 100 gigawatts (GW) by 2047. Central public sector undertakings (CPSUs) — the Nuclear Power Corporation of India (NPCI) and National Thermal Power Corporation (NTPC) — are already working on capacity additions totalling at least 60 GW by 2047.

While the sector is highly regulated with only the government permitted to build, operate, and maintain nuclear power plants, there are plans to open it up to private players to increase India’s electricity generation capacity and meet its growing energy needs.

India’s nuclear power capacity currently stands at 8,180 MW (8.18 GW), and even before 2047, the government aims to produce nearly 22.5 GW  by 2031-32 — a project which could be accelerated with private participation.

Less than two months since the mission was announced and even before the government moves to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, a host of private companies, other than CPSUs, have pledged their contribution to the mission either through capacity addition or manufacturing reactors and ancillary items.

The Naveen Jindal group

On February 7, the Naveen Jindal group announced its foray into nuclear energy with the establishment of a new company — Jindal Nuclear Power Private Limited. With an investment of approximately Rs 1.80 lakh crore over the next two decades, the company aims to contribute 18 GW to India's ambitious target of 100 GW.

“Jindal Nuclear is the first in the private sector to express interest in investing in nuclear power to accelerate India’s transition to a low-carbon economy, providing reliable, round-the-clock, CO2-free energy,” the company said in a statement.

The company plans to incorporate a diverse mix of advanced technologies, including Bharat Small Reactors (BSRs), Small Modular Reactors (SMRs), and Gen-IV reactors, as they reach deployment readiness, it said.

Vedanta group

The Vedanta group, led by Anil Agarwal, has floated an expression of interest (EoI) seeking bids from global firms to build 5 GW of nuclear power capacity in India to meet the needs of its facilities.

Agarwal, in a statement, called the nuclear power sector “a very big opportunity for India” with a high potential for industrial development and job creation. He said nuclear power will ensure affordability and fuel India’s economic growth.

“This is the time for nuclear power. We need it for 24X7 clean energy. India is very well positioned. We have large reserves of thorium and some uranium. We also have the technology to build small, modular nuclear reactors which are easy to install and cost effective,” he said in a LinkedIn post on November 6.

Vedanta's current energy portfolio includes 9,000 MW of thermal and 4,000 MW of renewables (under construction). It is aiming to expand its capacity to 20,000 MW in the next three years.

Tata group

Tata Power CEO and MD Praveer Sinha told Moneycontrol that the company has shortlisted six locations for its entry into the nuclear sector. He said that technology and sourcing of the fuel for nuclear fission are the main aspects that should guide the government’s nuclear policy for power generation.

“We have evaluated over 10 sites for nuclear projects and shortlisted six. But we will wait for policy clarity before proceeding,” he said.

Tata Group Chairman Natarajan Chandrasekaran announced on February 25,  during the Advantage Assam 2.0 Investment & Infrastructure Summit, that it will manufacture SMRs.

Adani group

In February, Adani group Chairman Gautam Adani and senior officials visited Tarapur Atomic Power Station (TAPS) in Maharashtra to learn about nuclear power technology and  its operations.

Adani is planning to set up 30 GW of nuclear power capacity in the long term, as per reports. The Adani group, the country's largest private sector power producer, plans to replace its entire thermal capacity with nuclear power once their power purchase agreements (PPAs) end.

Reliance group

Reliance Industries Chairman Mukesh Ambani said on February 25 that the company will develop clean and green energy in Assam, including nuclear energy.

“Our priority is to make Assam a hub of clean and green energy. This will include nuclear energy, in line with the government's new policy to invite private participation in the industry,” he said at the Advantage Assam  summit.

The company, however, has not yet revealed details of its plans to invest in the nuclear sector.

Larsen & Toubro (L&T)

L&T, which provides engineering solutions for nuclear power plants, plans to continue doing so as part of the nuclear mission. It mostly constructs power plants across the globe.

The company manufactures reactor vessels for Pressurised Heavy Water Reactors (PHWRs) and Fast Breeder Reactors (FBRs), and designs the technology, critical equipment, and systems for heavy water plants, fuel re-processing plants, and plasma reactors.

ACME group

Acme Solar Holdings Chief Executive Officer Nikhil Dhingra has said that the renewable energy firm is keen on investing in nuclear power.

According to Dhingra, investing in nuclear power makes sense for Acme Solar, as the company is looking for long-term power purchase agreements (PPAs) instead of relying on the merchant market (power exchanges), which is volatile.

“As far as new businesses are concerned, we are keen on nuclear power because other than power production, we are primarily in the PPA business. Our aim is to sell power in a long-term, contracted manner,” Dhingra said.

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by the Independent Media Trust, of which Reliance Industries is the sole beneficiary.