India invites private sector to invest $26 bln in N. power plant

India is planning to invite private firms to invest around $26 billion in its nuclear energy sector to increase the share of non-carbon-emitting electricity sources, two government sources told Reuters on Tuesday.

The government is in talks with five private firms, including Reliance Industries, Tata Power, Adani Power, and Vedanta Ltd, to each invest around $5.30 billion. The Department of Atomic Energy and Nuclear Power Corp of India Ltd (NPCIL) are working with these companies to finalise the investment plan.

This marks the first time that New Delhi is seeking private investment in nuclear power, which currently contributes less than two per cent of India’s total electricity generation.

The government aims to have 50 per cent of its installed electric generation capacity come from non-fossil fuels by 2030, up from the current 42 per cent.

It also targets 11,000 MW of new nuclear power generation capacity by 2040 through this investment. Under the plan, the companies will make investments in the nuclear plants, acquire land, water, and undertake construction outside the reactor complex.

The private companies are expected to earn revenue from electricity sales, while NPCIL would operate the projects for a fee.

India’s stringent nuclear compensation laws have previously hampered talks with foreign power plant builders, but the country has made progress in securing nuclear fuel supplies.