Nuclear Power Corporation of India Limited (NPCIL) has issued a ₹28,000 crore tender for four indigenous 700 MWe nuclear reactors at the Mahi Banswara project in Rajasthan. This record-sized contract aims to accelerate India’s clean energy goals and boost domestic manufacturing of heavy engineering components. The project is managed by ASHVINI, a joint venture between NPCIL and NTPC.
The Nuclear Power Corporation of India Limited (NPCIL) has moved to significantly scale up the country's atomic energy capacity by issuing its largest-ever tender for a Nuclear Island Engineering, Procurement and Construction (EPC) package. Valued at over ₹28,000 crore, the contract covers the setup of four 700 MWe Pressurised Heavy Water Reactors (PHWR) at the Mahi Banswara Rajasthan Atomic Power Project.
Project Execution Through ASHVINI
The tender is being managed by Anushakti Vidhyut Nigam Limited (ASHVINI), which is a joint venture company formed by NPCIL and NTPC Limited. This arrangement highlights a strategic collaboration between India’s primary nuclear operator and its largest power generator to share the burden of massive infrastructure development. The scope of work is extensive, covering everything from detailed engineering and specialized manufacturing to civil construction, installation, and final testing. By bundling these tasks into a single large-scale package, the company aims to streamline project management and ensure better coordination across the complex nuclear supply chain.
Impact on Domestic Manufacturing
This expansion is a significant development for India’s heavy engineering and manufacturing sectors. Because the tender focuses on indigenous PHWR technology, it is expected to create consistent demand for domestic suppliers of critical nuclear-grade materials and high-precision equipment. For investors, this move suggests a long-term focus on building a self-reliant nuclear industrial base. The project is aligned with India's broader target of reaching 100 GW of nuclear power capacity by 2047, a goal that will require sustained investment and consistent order flow for domestic engineering firms over the coming decades.
Scaling Nuclear Capacity
Currently, nuclear energy contributes only about 3 per cent to India’s total electricity generation, with an installed capacity of roughly 8.78 GW. The government’s projection to scale this to 22.38 GW by 2031-32 indicates a clear shift toward nuclear power as a reliable source of baseload, low-carbon electricity.
While the scale of this project is significant, investors should note the inherent risks associated with nuclear power infrastructure. These projects are capital-intensive, typically require very long construction timelines, and are subject to stringent regulatory approvals and safety standards. Execution delays or cost overruns are common risks in large-scale power infrastructure projects, which can impact project margins and debt profiles.
Moving forward, the key updates to track include the final selection of the EPC contractor, the timeline for financial closure, and the actual start of construction on-site. The ability of ASHVINI and its partners to manage these large-scale construction risks while maintaining safety standards will determine the project's long-term financial success.