Adani Group Eyes Nuclear Energy Sector as Government Opens Doors to Private Players

As per Bloomberg report, India has cleared changes to allow private companies to enter the nuclear power sector, ending decades of tight restrictions.  

Parliament approved the move this week, with the government repotedly estimating that the opening could unlock investment opportunities worth about $214 billion. 

Adani in Talks with Uttar Pradesh 

As per Bloomberg report, the Adani Group is in discussions with the Uttar Pradesh government to develop a commercial nuclear power project.  

The proposal involves setting up 8 small modular reactors (SMRs), each with a capacity of 200 megawatts, taking the total planned capacity to around 1,600 MW. 

The talks are at an early stage and a site has not yet been finalised.  

Public-Private Partnership Structure 

The project is expected to follow a public-private partnership model. Under this structure, the Nuclear Power Corporation of India Ltd.  

(NPCIL) would operate the plant on behalf of the Adani Group, the people said. NPCIL is the country’s state-run nuclear power operator. 

Role of Government Agencies 

The Bhabha Atomic Research Centre is working on the design and development of the 200 MW SMRs proposed for the project.  

Oversight of these institutions falls under the Department of Atomic Energy. Officials from the department did not respond to queries seeking comment. 

Project Timeline 

Once regulatory approvals are in place, the project is expected to take 5 to 6 years to complete. The timeline brings out the approval processes and technical work involved, particularly as the Adani Group has not previously operated nuclear power assets. 

Policy Support and Wider Interest 

In the Union Budget presented in February, the Centre announced a Nuclear Energy Mission with an allocation of ₹20,000 crore for research and development of SMRs.  

Other large Indian groups, including Tata Group, Reliance Industries and JSW Group, have also shown interest in the sector, according to PTI reports. 

India’s Nuclear Power Base 

India currently operates about 24 nuclear reactors across 7 locations, contributing roughly 3% of total electricity generation. Installed capacity stands at around 8,780 MW, with projects underway to increase this to 13,600 MW.  

The government has set a longer-term target of reaching 100 GW of nuclear capacity by 2047. 

Read More: Elon Musk's Starlink Leases First Office in New Delhi with CorporatEdge! 

Conclusion 

The discussions reflect early private sector activity following regulatory changes, as India looks to expand nuclear power capacity over the long term. 

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