India Eyes $26 Billion Investment from Private Firms for Nuclear Energy Sector

India is contemplating inviting private enterprises to invest approximately $26 billion in its nuclear energy sector as part of an initiative to boost the proportion of non-carbon-emitting electricity sources, according to two government sources cited by Reuters on Tuesday.

Discussions are underway with five private firms, including Reliance Industries, Tata Power, Adani Power, and Vedanta Ltd, with each firm expected to contribute around $5.30 billion. The Department of Atomic Energy and Nuclear Power Corp of India Ltd (NPCIL) is collaborating with these companies to finalize the investment plan.

This marks a significant shift as it is the first time New Delhi is actively seeking private investment in the nuclear power sector, which currently accounts for less than two percent of India’s total electricity generation.

The government’s objective is to achieve 50 percent of its installed electric generation capacity from non-fossil fuels by 2030, an increase from the current 42 percent. Additionally, the plan aims to add 11,000 MW of new nuclear power generation capacity by 2040 through the proposed investment. Under this framework, the participating companies will invest in nuclear plants, procure land and water, and manage construction activities outside the reactor complex.

Revenue generated from electricity sales is anticipated to be a source of income for the private firms, while NPCIL will be responsible for operating the projects in exchange for a fee.

India has previously faced challenges in talks with foreign power plant builders due to stringent nuclear compensation laws, but progress has been made in securing nuclear fuel supplies.

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