NTPC, India’s largest power producer, is making significant strides in nuclear energy as part of its broader push toward a carbon-neutral future. The company is set to establish NTPC Nuclear Power Company, a wholly-owned subsidiary, and is actively scouting locations in various states for new nuclear power projects.
This nuclear initiative aligns with NTPC’s strategy to develop an integrated energy portfolio that includes renewables, nuclear power, green hydrogen, green mobility, energy storage, and waste-to-energy solutions. At the core of this strategy is low-emission thermal power generation, which NTPC aims to complement with a robust nuclear energy component.
NTPC’s first nuclear venture, a 2.8 gigawatt (GW) project in Mahi, Banswara, Rajasthan, in partnership with Nuclear Power Corporation of India Limited (NPCIL), is expected to break ground within the next two months. The project is anticipated to cost around Rs 50,000 crore.
“We have decided to establish NTPC Nuclear Power Company as a 100% subsidiary, and we are exploring different sites across states,” said NTPC Chairman and Managing Director Gurdeep Singh during the Q1FY25 earnings call. “We aim to replicate the success we’ve seen in thermal power with nuclear, providing a stable base load of power in the coming decades.”
In addition to large-scale nuclear plants, NTPC is also investigating the potential of Small Modular Reactors (SMRs), which were highlighted in Finance Minister Nirmala Sitharaman’s Budget speech. SMRs, with capacities ranging from 30 MW to 300 MW, are emerging as cost-effective and clean energy solutions globally. These reactors can be manufactured in a factory and transported to sites for installation, offering flexibility and scalability.
Following the Rajasthan project, NTPC is in discussions with states such as Gujarat, Tamil Nadu, Chhattisgarh, Odisha, and Karnataka for further nuclear power developments.
Singh emphasized that NTPC’s nuclear ambitions are expansive: “We are not talking about just 2 or 5 gigawatts, but tens of gigawatts. This will be a significant investment, and we are committed to regulated and cost-plus models.”
The estimated capital expenditure for the Rajasthan nuclear project is around Rs 17 to Rs 18 crore per megawatt, with the overall cost influenced by the project’s gestation period. Singh also noted that nuclear power generation costs are expected to be competitive, at approximately Rs 7 per unit.
“The Government of India is clear about the need to push nuclear energy, and NTPC is committed to playing a leading role in this endeavor,” Singh added, hinting at potential discussions on reducing nuclear energy costs in the future.
