In order to raise the quantity of power generated from non-carbon dioxide emitting sources, two official sources informed Reuters that India would extend an invitation to private companies to invest approximately $26 billion in its nuclear energy sector.
New Delhi is pioneering the pursuit of private investment in nuclear power for the first time. Nuclear power does not create carbon emissions and accounts for less than 2% of India’s total electricity supply. India has set a goal of increasing the percentage of its power generation capacity that uses non-fossil fuels from 42% to 50% by 2030. This investment would assist them reach that target.
At least five private companies, including Reliance Industries, Tata Power, Adani Power, and Vedanta Ltd, are negotiating investments of about 440 billion rupees ($5.30 billion) each with the government, according to two persons with direct knowledge of the situation.
The private corporations have reportedly met with the federal Department of Atomic Energy and the state-run Nuclear Power Corp of India Ltd (NPCIL) on many occasions during the last year to discuss the investment proposal.
Reuters did not get responses from the following entities: NPCIL, Tata Power, Reliance Industries, Adani Power, Vedanta, and the Department of Atomic Energy.
The sources, who preferred to remain anonymous due to the ongoing plan finalization, said that the government aims to construct 11,000 MW of additional nuclear power producing capacity by 2040 with the investment.
NPCIL has pledged investments for an additional 1,300 MW and owns and runs the present nuclear power plant fleet in India, which has a capacity of 7,500 MW.
Private corporations will invest in nuclear facilities, purchase land and water, and build beyond the reactor complex, according to sources. This is all part of the finance strategy.
According to their statement, however, NPCIL will have the legal power to construct and operate the stations, as well as control their fuel management.
The private firms are anticipated to generate income through the sale of electricity generated by the power plant, while NPCIL would be compensated for operating the projects, according to the sources.
"This hybrid model of nuclear power project development is an innovative solution to accelerate the nuclear capacity," commented Charudatta Palekar, a former PwC employee and current independent power sector professional.
According to one of the two reports, the idea does not necessitate any changes to India's Atomic Energy Act of 1962, but it does require the final approval of the Department of Atomic Energy.
While private firms cannot legally build nuclear power plants in India, they can supply the necessary components and equipment and even sign building contracts for projects unrelated to reactors.
The inability to secure nuclear fuel supplies has been the primary reason New Delhi has failed to achieve its targets for adding nuclear generating capacity for many years. But the United States and India reached an agreement in 2010 to supply reprocessed nuclear fuel.
International power plant builders like General Electric and Westinghouse have found it difficult to negotiate with India due to the country's strict nuclear compensation rules. An objective to increase nuclear power generation by 2,000 MW has been postponed from 2020 to 2030.
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