India aims to reach 100 GW of nuclear capacity by 2047, a major jump from its current 10 GW. Rosatom, a leading global nuclear firm, suggests this target is reachable if the proposed SHANTI Act allows private firms to join the Nuclear Power Corporation of India Limited (NPCIL) in building power plants.
India has set a target to reach 100 GW of nuclear power capacity by 2047, a significant jump from the current operational capacity of roughly 10 GW. Kirill Komarov, an executive from the Russian state-owned nuclear firm Rosatom, recently stated that this ambitious expansion is achievable if India creates a pathway for private sector companies to join the Nuclear Power Corporation of India Limited (NPCIL).
The government is working on the SHANTI Act, a legislative framework aimed at opening the nuclear energy sector to private players. For investors, this shift is significant. Historically, nuclear power in India has been the sole domain of government entities due to massive capital requirements and complex safety regulations. If the private sector is allowed to enter, it could open doors for Indian engineering, infrastructure, and heavy manufacturing firms to participate in building and operating these power plants.
Nuclear energy is becoming a focus for providing steady baseload power. While solar and wind are growing, they are weather-dependent and require energy storage to provide power 24/7. Nuclear energy, by contrast, offers a constant supply of electricity, which is critical for industrial growth and maintaining grid stability.
Rosatom’s interest in the Indian market is supported by its existing relationship with the country. The company is involved in the Kudankulam Nuclear Power Plant, where it has achieved 50% localization, meaning half of the project components are sourced within India. This localization is important for investors as it helps reduce import costs and helps build a local industrial supply chain.
However, investors should be aware of the inherent risks in the nuclear sector. Nuclear power projects are very expensive, have long construction timelines, and face strict regulatory hurdles regarding safety and land acquisition. Cost overruns and delays are common risks in nuclear infrastructure projects globally. Success for the 100 GW target will depend on stable policy, the successful implementation of the SHANTI Act, and the ability of companies to manage high costs while adhering to safety standards.
The next steps to watch include the formal passing of the SHANTI Act and any subsequent announcements regarding tenders or joint ventures between the government and private companies. These updates will clarify the scale and speed of private involvement in India's nuclear energy future.