NTPC plans to go big on nuclear expansion, scouts for locations in states  

The country’s largest power company NTPC is planning to go big on nuclear energy generation and has plans to make NTPC nuclear power company, which will be 100% subsidiary of NTPC, and is exploring sites in several states for setting up nuclear units.

The NTPC nuclear power foray comes as it works towards a carbon-neutral economy and an integrated energy spectrum comprising renewables, nuclear power, green hydrogen and chemicals, green mobility, energy storage and waste-to-energy initiatives keeping low-emission thermal power generation at the core.

The NTPC’s first nuclear power project in Mahi, Banswara in Rajasthan in a joint venture with Nuclear Power Corporation of India Limited (NPCIL) is likely to take the activities of groundbreaking in the next two months. The plant's project cost with a 2.8 gigawatt (GW) capacity is expected to be Rs 50,000 crore.

“We have already decided to make NTPC Nuclear Power Company, which will be 100% subsidiary of NTPC. And we are looking forward to different sites in different states. And we would like to replicate the kind of success that our team has been able to demonstrate in the case of thermal; the similar kind of success in the nuclear, which will be providing the base load power over the coming decades,” NTPC CMD Gurdeep Singh told investors during Q1FY25 earning call July end.

The NTPC is also exploring small modular reactor nuclear technology, which was mentioned in Finance Minister Nirmala Sitharaman’s Budget speech. Small Modular Reactors (SMR) have been gaining traction globally as low-cost clean energy sources of energy. They have a power capacity ranging from 30 MW to 300 MW and components, systems and structures can be manufactured in a factory before being transported as modules to sites for installation.  

After Rajasthan, the power generator is in talks with Gujarat, Tamil Nadu, Chhattisgarh, Odisha and Karnataka for setting up thermal power units.

Explaining about company’s nuclear expansion plans, Singh said: “It's not going to be 2 gigawatt or 5 gigawatt, but it is going to be tens of gigawatt. It cannot be limited to that. And this is going to be a lumpy investment and again, this is going to be the regulated and cost plus.”

The capex for the Rajasthan nuclear plans is estimated to be Rs17-Rs 18 crore per megawatt. So, I think, as of today, what is being said that this is going to be almost around ₹17 to ₹18, but the whole cost is also dependent on the gestation period. And we are working with NPCIL and other technology

On the rough estimates of nuclear power charges, the NTPC CMD said it is almost in the range of around Rs 7 per unit, which is quite competitive.

“The major part is on the CAPEX side. I don't rule out some kind of detailed discussion at some stage like there are PLIs, etc. for the different areas, that what are the ways how to really reduce the cost of nuclear energy in the country. But this is too early to say anything at this point of time. But one thing is very clear that the Government of India is clear that we need to push the nuclear. And when the nuclear is going to come and we have been making our efforts. So, we will play a leading or the major role in that also,” he added.