For the first time, NPCIL opens door to nuclear sector for Indian private firms

New Delhi: The Nuclear Power Corporation of India Ltd on Tuesday invited ‘request for proposal’ from Indian industries to set up 220 MW Bharat Small Reactor captive power plants opening up the doors of the nuclear sector to Indian private firms for the first time.

As per the plan, the companies will have to bear the entire cost of building the nuclear power plant, under NPCIL’s supervision. They will be sole users of the electricity but the plant (asset) will be transferred to the NPCIL for operation.

“The project is to be constructed by the user (private firms) under the supervision and control of the NPCIL, and on completion, the asset is to be transferred to NPCIL for operation,” says the RFP bid document.

The interested companies will have to respond by March 31, 2025.

The RFP comes five months after Union Finance Minister Nirmala Sitharaman in her budget speech announced opening up the highly restrictive nuclear sector to private companies by allowing private firms to set up small nuclear reactors and carry out research on small, modular nuclear reactors in partnership with the government.

“Bharat Small Reactors are planned to be set up with private capital, within the existing legal framework and approved business models,” the NPCIL said in a statement.

Over the years, India has developed considerable expertise in 220 MW pressurised heavy water reactors with the NPCIL operating 14 such units at the moment.

“BSRs are 220 MW pressurised heavy water reactors with an impeccable safety and excellent performance record, which are compact and tailored for captive use. They can provide a sustainable solution for decarbonisation of hard to abate industries,” it said.

The companies will have to identify the site as per the Atomic Energy Regulatory Board guidelines while the NPCIL will get the approvals from the state governments and regulatory bodies. The companies will have to sign three agreements with the NPCIL at various stages of the project execution.

The public sector unit under the Department of Atomic Energy will hand-hold the private firms as it is the only Indian agency with the experience of handling N-power plants.

These reactors would also help these industries secure economic benefits resulting from savings in carbon emission related taxes thus increasing competitiveness of their products in the global markets, the NPCIL said.

Earlier following the Indo-US nuclear deal, the DAE had offered two sites in Gujarat and Andhra Pradesh to US nuclear giants for setting up large power plants, but its negotiations with Westinghouse were stuck for years. Similarly, negotiations with France for setting up six 1650 MW reactors at Jaitapur by EDF have also not made much headway.