Major Indian industrial players, including Adani, Tata Power, Reliance, JSW, and Jindal Nuclear Power, are actively exploring partnerships with global suppliers for nuclear reactor technology. Their primary interest lies in Small Modular Reactors (SMRs), an evolving technology still under development worldwide, as they aim to fulfill captive power needs and achieve ambitious zero-carbon targets.
Challenges with Indigenous Nuclear Technology
India's domestic 220-megawatt Pressurised Heavy Water Reactor (PHWR), once a cornerstone of the nation's nuclear program, has seen no new deployments since 2011. This prolonged hiatus has led to significant challenges, including core manufacturers discontinuing the production of compatible nuclear turbines.
According to a company spokesperson, the Nuclear Power Corporation of India Ltd (NPCIL) is working to adapt its 220 MW PHWR design into 'Bharat Small Reactors' (BSR) by adding steel liners and upgrading control systems for enhanced safety. However, updated design drawings are not yet available, hindering immediate deployment.
Sourcing equipment for older 220 MW PHWRs presents another hurdle. Key domestic suppliers such as L&T and BHEL have ceased manufacturing 220 MW turbines. Restarting production would require substantial order volumes, which are currently lacking.
Demand for Smaller, Flexible Reactors
Indian firms are keen to start with smaller capacity reactors, typically under 300 MW, before considering larger units exceeding 700 MW. This approach helps manage the massive initial capital costs associated with nuclear power projects.
Most operational foreign technology reactors, such as those from France's EDF, US-based Westinghouse, or Russia's Rosatom, are above 1,000 MW. These often come in twin constructions, meaning a single project could involve two 1,000 MW reactors, pushing the total capacity to 2,000 MW and costs to an estimated ₹70,000 crore (approximately ₹35 crore per megawatt).
“A private developer may not be able to commit such huge investment in the first project, when they are entering the market. That is why many private developers are looking to start with a smaller unit. The cost of a 2X220MW reactor, having an average cost of ₹20-25 crore per MW, is around ₹8,800-₹11,000 crore,” stated an industry spokesperson.
For captive users, smaller units offer greater operational resilience. Running multiple smaller reactors means that if one unit is down for maintenance, the plant can still operate at 70-75% capacity, minimizing disruptions. This flexibility is crucial for sectors like data centers, commercial operations, and heavy industries such as steel, aluminum, and cement, where utility-scale 1,000 MW reactors are often impractical.
As India targets 100 GW in nuclear capacity by 2047, industry experts emphasize that a diverse mix of technologies will be essential for achieving medium and long-term success in its energy transition.