NTPC plans to spend $62 billion on 30 GW of nuclear power: Sources

New Delhi: NTPC is looking to build 30 gigawatts (GW) of nuclear power capacity over the next two decades, three times more than expected, at a cost of $62 billion, three sources said.

The country's top power producer, which mainly runs coal-fired plants, is seeking land for its ambitious plan in a country where local resistance to such projects is high, said the sources, who have direct knowledge of the matter.

NTPC was targeting 10 GW of nuclear capacity but tripled the goal after the government this month announced plans to open up the sector to foreign and private investment, the sources said.

"NTPC plans to lead India's nuclear power plan just as it did in the...thermal sector," one of the sources said. "The identified sites are promising and hold potential for large capacity addition."

An NTPC spokesperson did not respond to a request for comment.

India has committed to setting up 500 GW of non-fossil fuel electricity generation capacity by 2030 and wants to have at least 100 GW of nuclear capacity by 2047.

State-run Nuclear Power Corp of India is currently the sole operator of the country's nearly 8 GW capacity, aiming for an increase to 20 GW by 2032.

NTPC is already building two 2.6 GW plants with Nuclear Power, one in Madhya Pradesh and one in Rajasthan.

It is also in the process of seeking early approvals for land in eight states for detailed studies in 27 locations, said the sources, after public resistance and acquisition issues have hobbled the country's atomic energy ambitions.

The states include Prime Minister Narendra Modi's native Gujarat, Uttar Pradesh, Madhya Pradesh and Andhra Pradesh and Tamil Nadu.

Law changes

The sources said the locations could be enough to set up capacity of at least 50 GW.

Private Indian utilities and conglomerates such as Tata Power, Vedanta, Reliance Industries and Adani Power have expressed their interest in nuclear power, Reuters has reported.

NTPC's newly created unit NTPC Parmanu Urja Nigam is likely to make the investments in the sector, including through partnerships, the sources said.

A company executive told Reuters last week that NTPC was in talks about the construction of small nuclear reactors with foreign firms, including from Russia and the United States.

The sources said potential partners include France's EDF, and General Electric and Holtec International from the US.

EDF said it was prepared to collaborate with Indian industrial partners to develop a small modular reactor project. General Electric and Holtec did not immediately respond to requests for comment.

Modi, during visits to France and the US last week, said the government would work with both countries to develop India's nuclear industry.

The Atomic Energy Act of 1962 currently bars private investments in nuclear power plants, while stringent liabilities under the Civil Liability for Nuclear Damage Act, 2010, deter foreign fuel and equipment suppliers such as GE and Westinghouse from signing deals.

Finance Minister Nirmala Sitharaman has proposed amending the two Acts, and promised Rs 2,0000 crore ($2.30 billion) for the research and development of SMRs, at least five of which will be operational by 2033.