RIL, Adani, Tata, others look to partner NPCIL in nuclear energy push to lower emissions

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The government’s tender to set up Bharat Small Reactors (BSRs) to decarbonise high-emission industries such as steel and aluminium using nuclear power is likely to attract at least Rs 35,000 crore in investments from the private sector, government officials told Moneycontrol.

The tender, the bid submission deadline for which ends September 30, has received responses from almost all big business groups such as Reliance Industries, Adani Group, Tata Group, Aditya Birla Group's mining arm Hindalco, Vedanta and JSW Group, one of the officials cited above said.

“The plan is to allot the projects on a twin-unit basis. This means each unit will have two BSRs of 220 MW,” the official said on condition of anonymity.

The estimate for a twin unit is about Rs 6,000-7,000 crore. “NPCIL is planning a total of either 12 such reactors (six twin units) or 14 reactors (seven twin units). The total investments by the selected companies could range from Rs 35,000 crore to Rs 50,000 crore,” the official said.

Government-owned Nuclear Power Corporation of India Ltd (NPCIL) is executing this tender. The tender, or the request for proposal, was floated in January but the June 30 deadline was extended on the request of stakeholders who had sought more details about the project.

Also read: India to quadruple uranium imports for nuclear energy mission.

BSRs are compact 220 MW pressurized heavy water reactors (PHWRs) being developed in India to provide a sustainable, low-carbon energy solution for industries such as steel, aluminium, and metals, which can act as captive power plants.

Globally, there is a growing demand for small nuclear reactors due to their flexibility, scalability, and lower costs compared to traditional large setups.

The successful bidder will have to finance the entire project, including capital and operational expenditure, and will be required to reimburse NPCIL for all costs incurred across the lifecycle, from pre-project assessments to decommissioning.

In return, the winners will gain assured long-term access to all the electricity generated through the nuclear reactors for captive use.

The twin units of BSRs will be constructed under NPCIL’s supervision, which will also retain the operational control of the asset.

The tender has been designed in such a way that it includes the power-guzzling industrial sectors of India. To be eligible, the tender document says, the bidder must have a minimum net worth of Rs 3,000 crore and an annual power requirement of at least 2,500 million units.

The government's move is a step toward India’s plan to increase its nuclear power capacity from 8.7 GW to 22.48 GW by 2031-32 and eventually 100 GW by 2047.

Earlier this year,  the Union Budget announced a National Nuclear Energy Mission with an initial outlay of Rs 20,000 crore for research and development of small reactors.

The move to deploy these reactors in so-called hard-to-abate sectors is crucial for achieving the net-zero emissions target by 2070. By integrating BSRs into the energy mix, India can reduce reliance on fossil fuels, provide reliable low-carbon power for energy-intensive industries and enhance its ability to meet international climate commitments.

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