India wants private investment of $26 billion to promote nuclear energy. Investors include Reliance, Tata, Adani, Vedanta. Private companies finance the construction of the plant and NPCIL retains the operating rights.
The Indian government is set to invite private investment worth $26 billion in its nuclear power sector. The initiative aims to promote non-carbon emitting energy sources in line with India's target to increase non-fossil fuel-based power generation to 50% by 2030.
Key Players and Investment Details
- Private companies including Reliance Industries, Tata Power, Adani Power and Vedanta Ltd are being approached for investments worth about 440 billion rupees ($5.30 billion).
- The investment will include nuclear plant infrastructure, land acquisition, water resources and construction activities outside the reactor complexes.
operating structure
- Nuclear Power Corporation of India Limited (NPCIL) will retain the rights to build, operate and manage nuclear stations, including fuel management.
- Private companies are projected to earn revenue through sale of electricity from power plants, while NPCIL will operate the projects for a fee.
Regulatory and legal context
- The initiative does not require amendments to the Atomic Energy Act 1962, but is awaiting final approval from the Department of Atomic Energy.
- Although Indian law prohibits private companies from setting up nuclear power plants, they are allowed to supply components, equipment and carry out construction work outside the reactor areas.
Challenges and progress
- India has faced challenges in meeting nuclear power capacity addition targets due to nuclear fuel procurement issues.
- Agreements with countries such as the United States for reprocessed nuclear fuel supplies have addressed some of these challenges.
- Strict nuclear compensation laws and difficulties in negotiations have affected discussions with foreign power plant builders, resulting in capacity addition targets being deferred.