NTPC, Nuclear Power Corp. to start Rajasthan project by March, spending ₹50,000 crore

New Delhi: India’s largest power generator NTPC Ltd expects to begin construction of a nuclear power plant in Rajasthan by March along with its joint venture partner Nuclear Power Corporation of India Ltd, spending about ₹50,400 crore.

The Union cabinet is expected to approve the transfer of the proposed nuclear power project from Nuclear Power Corp. to the joint venture shortly, said a person familiar with the development. The investment per megawatt for the 7x400 MW project will be about ₹18 crore, this person added.

The project is part of NTPC’s ambitious target to set up10 GW of nuclear power capacity over 10 years, investing ₹1.5 trillion. India currently has only about 7GW of nuclear power, considered a clean and non-fossil fuel.

Nuclear power comprises 20 GW of the government’s ambitious plan to install 500 GW of non-fossil power capacity by 2030.

“We expect the laying of the foundation stone (for the Rajasthan project) in the next few months," said a second person. Both the people aware of the developments declined to be identified.

In May last year, both the state-run companies signed agreements to jointly develop two pressurised heavy-water reactor projects—the Mahi Banswara Rajasthan Atomic Power Project (4x700 MW), and the Chutka Madhya Pradesh Atomic Power Project (2x700MW)—through their joint venture, Anushakti Vidhyut Nigam Ltd.

However, NTPC will not be a part of the project in Madhya Pradesh, which Nuclear Power Corp. will develop on its own, the first person mentioned above said.

NTPC and Nuclear Power Corp. did not immediately reply to emailed queries.

NTPC’s clean energy drive

NTPC is also looking for a technology partner for developing indigenous small modular reactors.

The government in its Union budget for 2024-24 announced that it wouldpartner with private enterprises to develop small modular reactors, and would support research and development in the space.

These reactors 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 can be set up in locations not suitable for larger plants.

India’s nuclear power generation capacity is expected to reach 13.08 GW in 5 years with the installation of seven new nuclear reactors, Union minister Jitendra Singh said in June. India currently has 24 nuclear reactors.

Also read | Mint Explainer: What’s behind the renewed interest in nuclear power?

NTPC is also scheduled to list its renewable energy company, NTPC Green Ltd, on the stock exchanges, and has appointed book-running lead managers for it.

NTPC Green’s initial public offering would be launched in November, said a person aware of the company’s plans.

At the time of the IPO, NTPC Green’s installed capacity is expected to be 4 GW. Another 8 GW is expected to be under construction during the IPO, this person added.

NTPC Green has selected IDBI Capital Markets and Securities, HDFC Bank Ltd, IIFL Securities Ltd, and Nuvama Wealth Management as the investment bankers to manage the IPO.

Also read | Green thrust: India ought to accelerate its adoption of nuclear power