Bajaj Energy aims to enter the nuclear power sector, aligning with India's 100 GW capacity target by 2047. This follows the 2025 SHANTI Act, which opens the industry to private firms. While the move signals a major strategic shift for the thermal power producer, investors should note the company remains private and faces significant risks, including high setup costs and long project timelines.
Bajaj Energy is preparing to enter the nuclear power sector as part of a national push to expand India’s nuclear capacity to 100 GW by 2047. Sunita Kumar, CEO of the company’s nuclear business unit, has confirmed that the private power producer intends to play a role in this expansion. This marks a notable shift for the company, which has historically focused on thermal power production, primarily in Uttar Pradesh.
The ability for private firms to enter this space follows the introduction of the SHANTI Act in 2025, which created a regulatory pathway for non-government entities to participate in nuclear energy. Previously, this sector was almost entirely managed by state-run organizations like the Nuclear Power Corporation of India Ltd (NPCIL) and NTPC. By aiming for a piece of the 20 GW capacity that the government expects to come from the private sector, Bajaj Energy is looking to diversify its power generation business away from traditional fossil fuels.
While the goal is ambitious, the transition involves significant challenges. Nuclear power plants are extremely expensive to build and require many years to complete. For a private company, these projects carry high financial risks compared to thermal plants, which typically have lower initial costs and shorter construction times. The company will need to manage the high cost of borrowing for such large-scale projects and ensure that the power generated can be sold at viable prices in India’s price-sensitive electricity market.
Another critical factor is the supply chain. Generating nuclear power requires specialized technology and fuel, such as uranium. Bajaj Energy’s plan involves exploring international partnerships, including potential fuel supply agreements with countries like Australia. Relying on imports creates risks related to global supply chain disruptions and political developments between nations. The company and the government will likely need to establish a clear risk-sharing model to protect private developers from these international uncertainties.
Investors should be aware that Bajaj Energy is a private company and is not listed on stock exchanges like the NSE or BSE. While it has explored an initial public offering in the past, those plans did not move forward. For those following the broader energy sector, the key developments to monitor will be the progress of initial pilot projects under the SHANTI Act and how the government frames the contracts to make these projects financially attractive for private participants. The company’s success will depend on its ability to balance the high costs of nuclear technology with the need for competitive power pricing while navigating complex regulatory requirements.