NTPC Chief Pushes for Domestic Nuclear Technology

NTPC Chairman Gurdeep Singh is advocating for India to prioritize domestic control over nuclear technology. He suggests accepting a 5-10% increase in initial costs to build self-reliance and guard against global supply chain disruptions. This stance comes as India pursues an ambitious target of 100 GW of nuclear power by 2047, a plan supported by the new SHANTI Act designed to attract private and foreign investment.

The High Cost of India's Nuclear Power Goals

The push for indigenous technology faces significant economic considerations. India's nuclear power costs are estimated between ₹15–16 crore per MW, substantially higher than solar and wind power projects (₹5-8 crore per MW). While NTPC prefers large, domestically built reactors for its own capacity goals, pursuing this path could raise upfront investment costs. India's overall 100 GW target by 2047 requires adding about 4.14 GW of capacity annually, with an estimated total investment of $218 billion.

SHANTI Act Aims to Boost Private Investment

The SHANTI Act (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India), enacted in 2025, is a key legislative piece replacing older laws. It aims to attract the significant private and foreign capital needed for India's nuclear expansion. The act allows for private sector participation, including up to 49% foreign direct investment in nuclear projects, and reforms liability rules. However, questions remain about the economic viability of nuclear power, especially when compared to the lower costs of coal, solar, and wind energy.

Large Reactors vs. Small Modular Reactors (SMRs)

While NTPC favors large-capacity reactors, the government is also promoting Small Modular Reactors (SMRs) for specific industrial uses, allocating ₹20,000 crore for their development. SMRs offer potential advantages like quicker deployment and lower initial costs per unit. However, achieving cost efficiency for SMRs typically requires high order volumes. International estimates often place SMR overnight costs higher than traditional large reactors, though India's domestic manufacturing, led by companies like L&T, projects potential savings of up to 30%. The global market for reactors includes major players such as Westinghouse, EDF, and Rosatom, with GE Hitachi also developing SMR designs. In India, entities like NPCIL, Tata Power, and Larsen & Toubro are exploring SMR opportunities.

NTPC's Market Standing

NTPC, a major infrastructure player, held a market capitalization of approximately ₹3.83 trillion as of May 2026, with a P/E ratio ranging from 15.43 to 16.3. While its stock has shown resilience, even during market downturns, its long-term valuation will be influenced by its strategic direction in nuclear power and its role in supplying energy for critical needs like data centers supporting India's AI ambitions.

Key Risks for Nuclear Indigenization

Prioritizing domestic nuclear technology, though aimed at energy security, carries economic risks. Higher initial costs for indigenous solutions could increase project expenses and electricity tariffs, potentially making nuclear power less competitive against renewables and delaying the 100 GW target. Relying solely on domestic development might also lead to slower innovation cycles compared to global advancements, risking the procurement of less efficient systems. Furthermore, the evolving regulatory framework under the SHANTI Act could present implementation uncertainties for both public sector and private investors. The substantial capital required for nuclear projects, estimated at ₹16–20 crore per MW, combined with potential cost overruns, poses a significant financial challenge.

Outlook for India's Nuclear Future

NTPC's Chairman's vision highlights the challenge of balancing India's energy security goals with economic realities. The success of the 100 GW nuclear target will depend on effectively managing the costs and technological development associated with prioritizing domestic solutions. The nation's ability to navigate these factors will shape its energy security and position in the global clean energy landscape, with organizations like NPCIL also planning significant capacity additions by 2032.