Indian Economy News

India seeks US$ 26 billion of private nuclear power investments

  • IBEF
  • February 21, 2024

Aiming to expand its carbon-free energy sources, India plans to invite private firms to invest US$ 26 billion in its nuclear power sector. This marks the first time the government seeks private participation in this traditionally state-controlled domain.

The initiative aims to contribute to India's goal of achieving 50% non-fossil fuel-based electricity generation by 2030, up from the current 42%. Under the plan, private companies like Reliance Industries, Tata Power, and Adani Power will invest approximately US$ 5.3 billion (Rs. 440 billion) each in nuclear projects. While private entities handle investments, land acquisition, and construction outside the reactor zones, state-run Nuclear Power Corp of India Ltd (NPCIL) will retain rights to build, operate, and manage fuel for the plants. This "hybrid model," according to expert Charudatta Palekar, presents an innovative solution to accelerate nuclear capacity expansion.

With this move, India hopes to add 11,000 MW of new nuclear power generation capacity by 2040. This comes after years of missed targets due to challenges in procuring nuclear fuel. While stringent nuclear compensation laws previously hindered foreign participation, this initiative opens doors for private involvement and potentially accelerates India's clean energy ambitions.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.