India aims to nearly triple its nuclear energy capacity from 8 GW currently to 22 GW by 2032. The Union Budget 2025-26 also marked the announcement of a new Rs 20,000 crore mission for the research and development of small modular reactors (SMR), that are set to drive growth in the space.
As per Motilal Oswal, nuclear energy could be a new growth driver for NTPC as the utility player could be the bellwether in the space.
Participation In Nuclear Energy In India
Dealing in nuclear energy is of 'sensitive nature' due to complex regulatory environment, safety concerns, and potential public resistance. Currently the Nuclear Power Corporation of India Limited (NPCIL), a public sector enterprise, is primarily responsible for generating electricity from nuclear power in India.
Until recently, NPCIL was the sole entity responsible for constructing and operating commercial nuclear power plants in India. The sector has now been opened up to private participation. Motilal Oswal believes that due to the 'sensitive nature' of the industry, conventional nuclear investments may continue to be done in partnership with Nuclear Power Corporation of India Limited.
How Could NTPC Benefit?
One of the projects NTPC Ltd could benefit from is the Mahi Banswara Rajasthan Atomic Power Project (MBRAPP). This nuclear power plant project in Rajasthan was recently transferred from NPCIL to 'ASHVINI'- a joint venture between NPCIL and NTPC.
Motilal Oswal estimates this project to add roughly 5.8% to NTPC's regulated equity base. For context, a regulated equity base is a portion of NTPC's capital that the regulator allows to generate guaranteed profits on.
Also Read: Entry Of Private Firms Into Nuclear Energy Space Needed For Country's Growth: Milind Deora
While NTPC may continue to partner with NPCIL for conventional nuclear projects, the company also incorporated NTPC Parmanu Urja Nigam Limited in January 2025. This subsidiary was formed with the objective of commercially developing nuclear energy for electricity generation and other uses, including building, owning, and operating nuclear facilities.
Additionally, as per agencies, NTPC plans to spend $62 billion on 30 GW of nuclear power over the next two decades. This is 3 times more than expected. Agencies also noted that NTPC is in the process of seeking early approvals for land in 8 states, covering 27 locations for the same.
Are There Other Players?
There are also several other players that could benefit from the value chain of nuclear energy:
Walchandnagar Industries has been involved in the manufacturing of critical components for nuclear power plants in India for over four decades.
Bharat Heavy Electricals has been involved in supplying equipment like turbines, generators and critical components for various nuclear power projects in India. The company also offers EPC services for nuclear power plants.
Hindustan Construction Company has also undertaken civil construction work for nuclear facilities, such as building reactor structures, cooling towers, and other related infrastructure.
Tata Power is exploring diversification into the small module reactor segment. The company is actively evaluating opportunities in the sector, and will come up with a plan after detailed policy directions and amendments to the Atomic Energy Act are made.
Jindal Nuclear has also announced an ambitious plan to contribute 18GW to India's nuclear power capacity by 2047.
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