NTPC, India’s largest power producer, is set to triple its initial nuclear power target, aiming for 30GW of capacity instead of the earlier 10GW plan. This major push comes after the Indian government announced policy reforms allowing private and foreign investments in the nuclear sector.

Government support and policy changes

NTPC initially aimed for 10 GW of nuclear capacity but increased its target after the Indian government announced plans to open the nuclear sector to foreign and private investment. India, which has committed to achieving 500 GW of non-fossil fuel electricity capacity by 2030, aims to reach 100 GW of nuclear capacity by 2047.

Identified locations and challenges

The company is currently seeking land in eight states, including Gujarat, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, and Tamil Nadu. Public resistance and land acquisition challenges have previously slowed India’s atomic energy projects. However, NTPC believes the identified sites offer strong potential for large capacity additions.

Collaborations with global partners

NTPC is already constructing two 2.6 GW nuclear plants in Madhya Pradesh and Rajasthan in collaboration with the state-run Nuclear Power Corporation of India (NPCIL). The company is also in talks with foreign firms, including EDF (France), General Electric (US), and Holtec International (US), for the development of small modular reactors (SMRs).

Regulatory reforms and investment plans

India’s nuclear energy expansion has been constrained by the Atomic Energy Act of 1962, which currently bars private investment in nuclear power plants. Additionally, strict liability laws have deterred foreign suppliers. To address these challenges, Finance Minister Nirmala Sitharaman has proposed amendments to these laws and announced a ₹200 billion ($2.3 billion) fund for SMR research and development, with at least five SMRs expected to be operational by 2033.

Private sector interest in nuclear energy

Indian conglomerates such as Tata Power, Vedanta, Reliance Industries, and Adani Power have shown interest in entering the nuclear power sector. NTPC’s new subsidiary, NTPC Parmanu Urja Nigam, is expected to lead the company’s nuclear investments, potentially through joint ventures and international collaborations.