Tata Power, one of India’s leading integrated power companies, will enter the nuclear energy sector only after the government revises regulations that will allow public-private partnership in building plants and small reactors, chief executive officer and managing director MD Praveer Sinha has said.
In India, only government entities can generate and supply nuclear energy though there is talk of allowing private companies to invest in the sector. Opening up the sector is important for the country to achieve its clean energy goals, experts say.
“At some stage, as and when the Union government comes up with the required regulations and law, Tata Power would also foray into nuclear energy. As of now, it all depends on the policy the government comes up with in this regard, which would also require clarity on the partnership model with Nuclear Power Corporation of India Ltd (NPCIL),” Sinha told Moneycontrol.
Tata Power has set an ambitious target of achieving a revenue of at least Rs 1 lakh crore and a profit after tax (PAT) of Rs 10,000 crore by 2030.
It aims to pump in an average capex of Rs 25,000 crore a year starting FY26 to achieve its target of an operational capacity of 32 GW by 2030, primarily focusing on non-fossil sources.
Also Read: Explained: India's roadmap to achieve 100 GW nuclear power capacity by 2047
India’s nuclear sector is regulated. It is governed by the Atomic Energy Act, 1962, under which only government-owned entities such as NPCIL can generate and supply nuclear energy.
There has been no private sector involvement in India’s nuclear power sector, so far.
The 2024 Union Budget of India includes plans to partner with the private sector to build Bharat Small Reactors (BSR) and research and develop Bharat Small Modular Reactors (BSMR). The Department of Atomic Energy has been allocated Rs 24,969 crore in this year’s budget.
BSMR is a new concept that involves factory-made, easily assembled reactors. BSRs are based on India's existing pressurised heavy water reactor (PHWR) technology.
The PHWR technology uses natural uranium, heavy water coolant, and a horizontal cylindrical vessel called a calandria to produce nuclear energy.
The Centre plans to invite some leading private companies to invest about $26 billion in the nuclear power sector in the coming years, officials in the atomic energy ministry said on condition of anonymity.
The country’s installed nuclear power capacity is 8,180 MW, spread across 24 reactors. Coal and lignite-based capacity stands at 217.5 GW, while renewable capacity is 203.18 GW.
BSMRs for retired thermal power plants
The government is exploring using retired coal-fired power plants to set up small nuclear power plants.
“Bhabha Atomic Research Centre (BARC) is developing Bharat Small Modular Reactors (BSMRs) for repurposing of retiring coal-based power plants and catering to power requirements at remote locations in the country,” the government told Parliament on December 4.
The government also said the standard 220 MW Pressurised Heavy Water Reactor (PHWR), which has a proven safety and performance record, is being upgraded to reduce the land requirement and make it deployable close to the industries for use as a captive power plant.
“These reactors, termed as Bharat Small Reactors (BSR) are planned to address the decarbonisation needs of industries like steel, aluminium, metals, etc.
“Setting up of 220 MW Bharat Small Reactors (BSRs) is planned within the existing legal framework, broadly envisaging provision of land, cooling water and capital by the private entity, and the design, quality assurance, and operation and maintenance by Nuclear Power Corporation of India Limited (NPCIL), based on agreed business models,” the government said.
India aims to achieve its target of having 500 GW of non-fossil energy capacity by 2030 with the progressive deployment of clean technologies such as nuclear power and renewable energy.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
