NEW DELHI: The government seeks investment of about $26 billion from private companies for the country’s nuclear energy sector.
As per a report, the government is in talks with Reliance Industries, Tata Power, Adani Power, and Vedanta Ltd to invest nearly $5.30 billion each from them. The report, quoting two sources, mentioned the Department of Atomic Energy and the state-run Nuclear Power Corp. of India (NPCIL) have held multiple rounds of discussions with private companies in the past year on the investment plan. The government hopes to build 11,000 megawatts (MW) of new nuclear power generation capacity by 2040.
This is the first time India is pursuing private investment in nuclear power, a non-carbon-emitting energy source that contributes less than 2% of India’s total electricity generation. The funding would help India achieve its target of having 50% of its installed electric generation capacity use non-fossil fuels by 2030, up from 42% now. Meanwhile, one of the firms confirmed to the newspaper that talks are going on. “Being one of the top companies in the sector, we have got the invitation to talk about the project,” said an industry official.
NPCIL owns and operates India’s current fleet of nuclear power plants, with a capacity of 7,500 MW, and has committed investments for another 1,300 MW. As per the report, the private companies will make investments in the nuclear plants, acquire land and water, and undertake construction in areas outside the reactor complex of the plants. But the rights to build and run the stations and their fuel management will rest with NPCIL, as allowed under the law. However, the private companies are expected to earn revenue from the power plant’s electricity sales, and NPCIL would operate the projects for a fee.