India has unveiled plans to invite private firms to invest approximately $26 billion in its nuclear energy sector. This initiative aims to enhance electricity generation from non-carbon-emitting sources, addressing the nation's commitment to reducing carbon emissions.

This marks the first instance of New Delhi actively seeking private investment in nuclear power, a sector that presently contributes less than 2% to India's total electricity generation. With the goal of achieving 50% of its installed electric generation capacity sourced from non-fossil fuels by 2030, this investment drive becomes a crucial step forward.

Government sources reveal ongoing discussions with prominent private entities, including Reliance Industries, Tata Power, Adani Power, and Vedanta Ltd, each expected to invest around $5.30 billion. The plan, in collaboration with the Department of Atomic Energy and the Nuclear Power Corp of India Ltd (NPCIL), aims to construct 11,000 megawatts (MW) of new nuclear power generation capacity by 2040.

Under the proposed funding model, private companies will make investments in nuclear plants, acquiring land, water, and undertaking construction outside the reactor complex, while NPCIL retains rights to build, run, and manage the stations. This innovative hybrid approach is poised to accelerate nuclear capacity expansion without requiring amendments to existing legislation.

Despite past challenges in meeting nuclear power capacity targets due to fuel supply constraints and regulatory hurdles, India's strategic partnerships and evolving investment strategies signal a promising trajectory towards a more sustainable energy landscape.

Source: reuters.com