NTPC eyes 10GW nuclear capacity, new subsidiary

India's largest power generator, NTPC Ltd, is planning a major nuclear foray by setting up 10GW capacity with an investment of ₹1.5 trillion over a period of 10 years, according to the top executive of the state-run company. The move would more than double India’s current nuclear power capacity.

In an interview, NTPC’s chairman and managing director Gurdeep Singh said that the company is in talks with several states, and has sought the Centre’s nod for setting up a wholly owned subsidiary for the nuclear power initiative.

“We are exploring new sites for nuclear projects in Gujarat, Tamil Nadu, Jharkhand, Chhattisgarh and Karnataka. These sites have to be approved by the Atomic Energy Regulatory Board,” he said.

To be sure, NTPC already has a joint venture with Nuclear Power Corporation of India Ltd (NCPIL) for setting up two nuclear power plants in Rajasthan and Madhya Pradesh.

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“NTPC will execute Mahi Banswara nuclear project 4x700MW through the existing JV between NTPC and NPCIL,” said Singh. “Then, we will also a set up a subsidiary, NTPC Nuclear Ltd, for carrying out nuclear business in future for which we have sought government approval.”

NTPC's focus on nuclear assumes significance given that India has a nuclear power capacity of only about 7GW. Nuclear is considered a clean and non-fossil fuel, and comprises 20GW of the government’s ambitious plan to install 500GW of non-fossil power capacity by 2030.

Going nuclear

NTPC Nuclear would be NTPC's 11th subsidiary. The move comes in the backdrop of NTPC looking to go public with its renewable energy arm, NTPC Green Energy Ltd. NGEL has already selected IDBI Capital Markets and Securities, HDFC Bank, IIFL Securities and Nuvama Wealth Management as the investment bankers to manage the initial public offering (IPO).

Singh said that the 10GW nuclear capacity would be over and above its target of 60GW green power capacity by 2032. The cost of setting up 1MW nuclear capacity is ₹15 crore, taking the overall expense to about ₹1.5 trillion.

In its endeavour towards its standalone foray into nuclear power generation, the company would get technology players on board.

Speaking on the projects being developed through the joint venture with NPCIL—Anushakti Vidhyut Nigam Limited—Singh said, “Further, in the next 100 days, we will lay the foundation stone our joint venture nuclear plant at Banswara, Rajasthan."

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The joint venture will develop two pressurized heavy-water reactor projects, Mahi Banswara Rajasthan Atomic Power Project (4x700MW), and Chutka Madhya Pradesh Atomic Power Project (2x700MW).

NTPC's current generating capacity, including thermal and renewable sources, stands at 76GW, of which 87% is thermal.

The public sector major, which is already in talks with global players for developing so-called small modular reactors (SMRs), would look at developing these reactors under the new nuclear subsidiary.

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SMRs are smaller reactors that can be factory-built, unlike conventional nuclear reactors that are built on site. They have a power capacity of up to 300 MW(e) per unit, which is about a third of the capacity of traditional nuclear reactors, but being a mobile technology, they can be set up in locations not suitable for larger plants.

A recent report prepared by IIM Ahmedabad said that nuclear energy would play a significant role in providing stable baseload power to India’s future energy mix toward achieving its net-zero emissions targets. Globally, nuclear energy will play an important role in decarbonizing and achieving net-zero targets.