Private firms line up for small nuclear reactor projects

India’s first tender for small nuclear reactors aimed at high-emission industries has drawn interest from major private companies. The project could lead to investments worth up to Rs 50,000 crore.

Nuclear Power Corporation of India Ltd (NPCIL) has invited bids to build Bharat Small Reactors (BSRs) with a capacity of 220 megawatts (MW) each, intended for use in sectors such as steel and aluminium. The bid submission deadline is September 30.

The 220 MW units will function as Captive Generating Plants (CGPs) based on pressurised heavy water reactor (PHWR) technology. They will be located on brownfield or greenfield sites offered by participating private firms.

NPCIL plans to allocate the project in twin units, each comprising two BSRs of 220 MW. Each twin unit is expected to cost between Rs 6,000 crore and Rs 7,000 crore. Between six and seven twin units are under consideration, amounting to a total of 12 to 14 reactors.

Companies that have expressed interest include Reliance Industries, Adani Group, Tata Group, Hindalco, Vedanta, and JSW Group, according to government officials.

NPCIL will supervise construction and retain operational control of the BSR units. Private firms are expected to fully fund the projects and reimburse NPCIL for all associated costs, from pre-project work through decommissioning. In return, they will receive long-term rights to use the power for captive consumption.

BSRs are intended to deliver reliable, low-carbon electricity to energy-intensive industries. To qualify, bidders must have a net worth of at least Rs 3,000 crore and an annual power demand exceeding 2,500 million units.

The project aligns with India’s broader nuclear energy targets, including an increase in installed capacity from 8.7 gigawatts (GW) to 22.48 GW by 2031–32, and eventually to 100 GW by 2047. The government also plans to deploy 40 to 50 such reactors over the next decade, working with private firms under the framework announced in the 2024–25 Union Budget by Finance Minister Nirmala Sitharaman.

Source: Moneycontrol