NTPC, Nuclear Power Corp. to start Rajasthan project by March at a cost of ₹50,000 crore

New Delhi: India’s largest power producer NTPC Ltd expects to start construction of a nuclear power plant in Rajasthan by March with its joint venture partner Nuclear Power Corporation of India Ltd, spending around Rs. ₹50,400 crores.

The Union Cabinet is expected to soon approve the transfer of the proposed nuclear power project from Nuclear Power Corp. to the joint venture, a person familiar with the development said. The investment per megawatt for the 7×400 MW project will be about ₹18 crore, the person added.

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

Nuclear energy makes up 20 GW of the government’s ambitious plan to install 500 GW of non-fossil fuel generation capacity by 2030.

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

In May last year, the two state-owned companies signed agreements to jointly develop two pressurised heavy water reactor projects – the Mahi Banswara Rajasthan nuclear power plant project (4×700 MW) and the Chutka Madhya Pradesh nuclear power plant project (2×700 MW) – through their joint venture, Anushakti Vidhyut Nigam Ltd.

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

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

NTPC’s Clean Energy Drive

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

In its 2024-2024 budget, the government announced cooperation with private companies to develop small modular reactors and support space research and development.

These reactors can be factory-built, unlike conventional nuclear reactors, which are built on-site. They have a capacity of up to 300 MW(e) per unit, about one-third the capacity of traditional nuclear reactors, but they can be installed in locations unsuitable for larger plants.

India’s nuclear power generation capacity is expected to touch 13.08 GW in five years after the installation of seven new nuclear reactors, Union Minister Jitendra Singh said in June. India currently has 24 nuclear reactors.

Read also | Mint Explainer: What’s behind the renewed interest in nuclear power?

NTPC is also planning to list its renewable energy arm, NTPC Green Ltd, and has appointed lead managers for demand accounting.

The initial public offering of NTPC Green shares will be launched in November, according to a person with knowledge of the company’s plans.

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

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

Read also | Green boost: India should accelerate nuclear power deployment