After the space sector, India opened up its last frontier, nuclear power, to private investments with an immediate market potential worth $125 billion.
In a phased manner, private and foreign capital will be channelled to replace heavily polluting coal-fired power plants with a fleet of nuclear reactors and thereby decarbonize its economy.
To begin with, 50 small pressurized heavy water power reactors with capacities of 220 MW each will be lined up with an investment of $26 billion. Heavy polluting industries like steel, aluminium and metal sectors will source their electricity from these “benign” nuclear power reactors as per plans.
State-owned Nuclear Power Corporation of India Ltd. will partner with private investors and power developers to set up these small reactors. A bid inviting private participation and investments in this hitherto heavily restricted area has been floated. Proposals are expected to be received by March 31.
Finance Minister Nirmala Sitharaman had announced government intent to open up nuclear power to private investors in her federal budget statement a few months back.
India’s government-run Babha Atomic Research Centre has designed these small modular nuclear power reactors to replace coal units as the country races to help achieve targeted net zero emissions.
Government officials divulged that nuclear power sector powered by private capital, technology and expanding market will help India achieve 500 GW green energy capacities by 2070. As per officially available data, 100 GW would be created through nuclear power by 2047. The sector accounts for a measly 8180 MW or just two percent of India’s power capacities.
Reports suggest that Prime Minister Narendra Modi’s government was close to clinching simultaneous deals with top energy companies like Reliance Industries, Tata Power, Adani Power and Vedanta to make 11,000-MW nuclear power happen.
“Foreign capital sourced by private companies is what government is currently looking at as a firm option as precursor to global nuclear power players entry,” said a veteran private company director.
In last few years, discussions with companies like General Electric and Westinghouse to set up nuclear reactors production units have not advanced much.