NTPC plans major nuclear expansion with new subsidiary

NTPC Limited is planning an expansion into nuclear energy by establishing NTPC Nuclear Power Company, a 100% subsidiary. The company is exploring sites in multiple states for new nuclear units as part of its strategy to achieve a carbon-neutral economy, integrating renewables, nuclear power, green hydrogen, green mobility, energy storage, and waste-to-energy, with low-emission thermal power at its core.

NTPC’s first nuclear project, in collaboration with Nuclear Power Corporation of India Limited (NPCIL), will be located in Mahi, Banswara, Rajasthan. The 2.8 GW plant, with an estimated cost of Rs 500 billion, is expected to begin groundbreaking activities in the next two months.

CMD Gurdeep Singh stated that NTPC aims to replicate its success in thermal power with nuclear energy, providing reliable baseload power. NTPC is also exploring Small Modular Reactor (SMR) technology, which offers scalable, low-cost clean energy solutions. SMRs, with capacities from 30 MW to 300 MW, can be manufactured in factories and assembled on-site.

In addition to Rajasthan, NTPC is in talks with Gujarat, Tamil Nadu, Chhattisgarh, Odisha, and Karnataka for further nuclear projects. Singh mentioned that NTPC’s nuclear plans will involve large-scale investments, aiming for tens of gigawatts of capacity, with regulated and cost-plus models.

The capital expenditure for the Rajasthan nuclear project is estimated at Rs 170-180 million per MW, with a power generation cost of about Rs 7 per unit. NTPC is collaborating with NPCIL and other technology partners to manage costs and ensure the competitiveness of nuclear energy.

Singh noted that the government is committed to advancing nuclear energy, and NTPC will play a leading role, with future discussions potentially focusing on cost reduction initiatives, including Production-Linked Incentives (PLIs) for nuclear energy.