NEW DELHI: The Centre has taken steps to open the nuclear sector to private investment in line with the announcement made in the budget of July 2024 and as part of a strategic move to signal positively to international partners, including the US.
The Nuclear Power Corporation of India Limited (NPCIL), country’s sole nuclear power operator, has issued a Request For Proposals (RFP), inviting Indian industries to finance and construct a proposed fleet of 220 MW Bharat Small Reactors (BSRs) for captive use and selling the power as per government rules, the PSU stated.
March 31 is the last date for submitting the proposals. The setting up of such nuclear reactors also align with government’s zero emission target for 2070 by reducing the carbon footprints, officials said. Nuclear power is not renewable energy but it is a zero-emission clean energy source.
The BSRs are intended to be established with private capital, operating within the existing legal framework and approved business models. As outlined in the RFP, the industrial party — referred to as the user — will have rights to the plant’s electricity output.
However, for operational purposes, the plant assets will be transferred to NPCIL. According to Indian laws, NPCIL is the sole operator of the nuclear power plants in the country. The user is expected to use the generated power for its own captive requirements but may sell the electricity to other customers at a tariff set by the Department of Atomic Energy in accordance with Indian laws.
The user will be responsible for all capital and operating expenses throughout the project’s lifecycle, including pre-project phases, maintenance, asset reinstatement in the event of damage, and decommissioning. The project will be constructed by the user under the supervision and oversight of NPCIL, and upon completion, the plant will be transferred to NPCIL for operation, officials said.
The announcement of the RFP follows a statement by Minister of State Jitendra Singh, who outlined the government’s vision for BSRs as part of its nuclear power programme in a written response to the Lok Sabha on December 4.
“The announcement is a signal to all partners that we are serious on reducing the carbon footprints and meeting our climate targets. It also signals that we will have a robust civil nuclear energy programme where private players too play their part,” said a source.
Live reactor design already operational in UP, Gujarat
The Bharat Small Reactors are 220 Mega Watt pressurised heavy water reactors, incorporating certain improvements. India already operates a live 220 MW pressurised heavy water reactor design, with several of them in operation across the country, including at Narora in Uttar Pradesh and Kakrapar in Gujarat.