Anushakti Vidhyut Nigam Limited, a joint venture between NPCIL and NTPC, has announced a ₹28,000 crore tender for four 700 MW reactors in Rajasthan. This significant capital spending aims to support India's goal of doubling nuclear capacity by 2032. Investors may track how this large-scale project impacts the execution timelines and cash flow management for the involved public sector entities.
Anushakti Vidhyut Nigam Limited (ASHVINI), a joint venture between the Nuclear Power Corporation of India Ltd (NPCIL) and NTPC Ltd, is moving ahead with its expansion plans by preparing a major tender worth approximately ₹28,000 crore. The contract covers the Engineering, Procurement, and Construction (EPC) of the nuclear island for four 700 MW Pressurised Heavy Water Reactor (PHWR) units at the Mahi Banswara Rajasthan Atomic Power Project. This project is a central part of India's broader effort to increase its nuclear power capacity.
Scope of the Nuclear Island Contract
The tender is comprehensive, covering the entire lifecycle of the project's nuclear core. The winning contractor will be responsible for engineering, manufacturing, supplying equipment, civil construction, and the final installation and testing of the four reactors. Given the scale and complexity of nuclear power plants, the EPC model is being utilized to manage the risks of project delays and cost increases by centralizing responsibility for the design and construction phases.
Strategic Expansion of Nuclear Capacity
Currently, nuclear energy accounts for about 3.1% of India's total electricity production. To meet growing energy demands and reduce carbon emissions, the government has set an ambitious target to reach an installed nuclear capacity of 22.38 GW by the fiscal year 2031-32. This project relies on India's indigenous 700 MW PHWR technology, which has been standardized to streamline construction and regulatory approvals.
For investors, the primary monitorable is the execution timeline. Large-scale nuclear projects are capital-intensive and often subject to long gestation periods and strict regulatory oversight from the Atomic Energy Regulatory Board (AERB). While NTPC is primarily a thermal power generator, its diversification into nuclear energy through this joint venture is a strategic shift to stabilize its long-term energy portfolio. The financial impact on NTPC will depend on how the capital spending is funded and the eventual return ratios once these units become operational. Future updates will likely focus on the bidding process, the selection of the primary contractor, and the progress of civil works at the Banswara site.