The nuclear energy sector in India plays a crucial role in the country’s energy landscape and economic development, with significant implications for future growth. Nuclear energy constitutes approximately 1.6% of India’s total energy mix, which is relatively low compared to other sources like coal and renewable energy.
India has set ambitious targets to increase its nuclear capacity significantly, aiming for 25% of its energy to come from nuclear sources by 2050. Nuclear energy investment is important for India to diversify its energy sources and mitigate the rising costs of obtaining fossil fuels. This will improve Indian renewable energy and its segments of nuclear energy as well.
Overview Of The Power Industry In India
Power sectors are the backbone of a nation’s infrastructure, playing a vital role in its economic development and welfare. The existence and development of adequate power infrastructure are critical to India’s long-term economic growth. India ranks third in the world for both electricity production and consumption.
The Indian power sector is classified into fossil fuel (56.8%) and non-fossil fuel (43%). Coal (49.1%) and gas (6%) have the highest share of fossil fuels. In non-fossil fuel, the share of renewable energy solutions was 41.4% and nuclear was 1.6%, as of May 31, 2023.
The government of India has announced that power sector allocation funds have been increased by 50% in the Union budget 2024-25. The increased funds have been utilized for the green hydrogen, solar power, and green-energy corridors in line with the renewable energy target for 2030.
Overview of the Nuclear Energy Sector in India
The nuclear industry plays a critical role in the global energy landscape. As of 2023, approximately 10% of global electricity is generated from nuclear power plants. India has largely developed its own nuclear power program. The Indian government has to commit to growing nuclear power capacity as part of the massive infrastructure development program.
India has developed extensive capabilities across the nuclear fuel cycle. In 2003, Bhartiya Nabhikiya Vidyut Nigam Limited (BHAVINI) was granted permission to design, construct, and operate the prototype Fast Breeder Reactor (PFBR), which became India’s most advanced nuclear reactor. It was a collaboration with over 200 Indian industries, including MSMEs.
India is the world’s third-largest energy consumer and producer, behind the United States and China. India is aiming for significant nuclear and renewable energy production, which is essential to achieving net-zero emissions by 2070. In India, the nuclear sector has 23 operable reactors with a capacity of 7425 MWe, 7 reactors under construction with a capacity of 5398 WMe, and 1 reactor with a capacity of 135 WMe has shut down.
India is planning to increase nuclear power capacity from 7480 MWe in 2024 to 22,480 MWe by 2031-32 with the development of 10 reactors totaling 8000 MWe across several states, including Gujarat, Rajasthan, Tamil Nadu, Haryana, Karnataka, and Madhya Pradesh. India is hoping to get 25% of its electricity from nuclear sources in 2050, which is to have a capacity of 1094 GWe.
Nuclear Energy In Union Budget 2024-25
Finance Minister Nirmala Sitharaman highlighted the government’s commitment to nuclear energy as a crucial component of India’s energy mix in Vikasit Bharat. Therefore, the governments will partner with the private sector in the development of small modular reactors (SMRs), setting up Bharat Small Reactors, conducting research & development of Bharat Small Modular Reactors, and researching & developing newer technologies for nuclear energy.
The budget allocates resources for research and development in nuclear technologies, signaling a robust partnership with the private sector to foster innovation in this field. This collaboration aims to not only enhance energy security but also facilitate a cleaner energy transition, aligning with global trends towards low-carbon solutions.
Moreover, the government’s focus is on advanced nuclear technologies, including the proposed Bharat Small Reactors. India is positioned to decrease its dependency on fossil fuels by incorporating nuclear energy into a more comprehensive energy plan, thereby making a valuable contribution to a sustainable and robust energy future.
Top Companies In The Nuclear Sector
National Thermal Power Corporation
(NTPC)NTPC was established on November 7, 1975. The company’s headquarters is in New Delhi and is owned by the Ministry of Power, Government of India. It is India’s largest power generation company. NTPC primarily focuses on thermal power generation but has diversified into hydro, nuclear, and renewable energy sources. NTPC plays an important role in the generation and distribution of electricity, contributing over 25% of the total power generation in India with an installed capacity of approximately 76,048 MW as of 2023
NTPC is making significant strides in the nuclear sector through its joint venture “ASHVINI” with Nuclear Power Corporation of India Limited (NPCIL). This venture includes the Mahi Banswara project in Rajasthan with a planned capacity of 4×700 MW and the Chutka Madhya Pradesh Atomic Power Project (CMPAPP 2×700 MW) expected to be commissioned by FY32. This project will add 4.2 GW of nuclear capacity to the company’s portfolio. NTPC also explores advanced nuclear technologies like small modular reactors (SMRs) and pressurized heavy water reactors (PHWRs).
Hindustan Construction Company (HCC)
Hindustan Construction Company(HCC) is an Indian multinational firm specializing in engineering and construction, with its headquarters located in Mumbai, Maharashtra. An industrialist named Seth Walchand Hirachand founded the company on January 27, 1926. It has primarily focused on transportation construction, engineering, hydroelectric power projects, nuclear power projects, and water solutions.
HCC Limited is India’s largest nuclear power plant builder and a reliable partner in the development of nuclear plant construction technologies. The company has built plants that account for more than 60% of India’s nuclear power capacity, which is to be 5,780 MW of India’s 9,580 MW of nuclear power generation capacity.
The company has complete construction capability for a nuclear power plant, including reactor & reactor auxiliary buildings, turbine generator buildings, Sea-water intake systems, pumphouses, cooling towers, and plant water systems. It also includes the construction of pressurized heavy water reactors (PHWRs) plants. HCC has built India’s largest and India’s first light-water reactors at Kudankulam, Tamil Nadu.
Bharat Heavy Electricals Limited (BHEL)
Bharat Heavy Electricals Limited was established in 1956 and is owned and controlled by the Government of India. The company is an integrated power plant equipment manufacturer and one of the largest engineering and manufacturing companies in India. It is the world’s top manufacturer of power equipment and was among the earliest to actively contribute to the creation of Aatmanirbhar Bharat.
The company has one of the largest capital goods manufacturing spaces in India. The company holds more than 150 projects across India and abroad and operates in 89 countries. BHEL is the only Indian company with the unique capability to design, manufacture, supply, and install nuclear steam turbines.
The company has supplied steam turbine generator sets for 12 plants, contributing nearly 50% of the country’s total installed capacity of 6.78 GWe. BHEL has been associated with all three stages of the Indian nuclear power program by providing sustainable solutions for over 5 decades. The first stage of contribution started with the first indigenously built 220 MWe nuclear power plant, Madras Atomic Power Stations (MAPS), Kalpakkam, Tamil Nadu.
The second stage has installed the turbine island for the 500 MWe prototype Fast Breeder Reactor (PFBR) under construction at Kalpakkam, Tamil Nadu. Furthermore, the third stage has developed the secondary cycle (power generating side) for Thorium-based 300 MWe Advanced Heavy Water Reactors (AHWRs) under agreement with the Bhabha Atomic Research Center (BARC).
Larsen & Toubro(L&T)
Larsen & Toubro was established on February 7, 1946, and the founders are Henning Holck-Larsen & Soren Kristian Toubro. Larsen & Toubro is an Indian multinational engaged in EPC projects, Hi-Tech manufacturing, and services. It operates in over 50 countries worldwide and has manufacturing plants across 9 countries. The company operates in key sectors such as infrastructure, hydrocarbons, power, process industries, information technology, nuclear, and financial services.
L&T manufactures reactor vessels for pressurized heavy water reactors (PHWRs) and fast breeder reactors (FBRs), designed technology and critical equipment & systems for heavy water plants, fuel re-processing plants, and plasma reactors. Furthermore, it has expertise in the construction of pressurized heavy water reactors (PHWRs) and light water reactors (LWRs), as well as organic draft cooling towers (NDCTs).
Larsen & Toubro has contributed to all 22 nuclear reactors operational in India. It enjoys more than 50% market share in the manufacturing of steam generators & end shields at the domestic level. L&T is India’s first company to get ASME N-stamp certification. L&T Special Steels and Heavy Forgings Private Limited (LTSSHF) is a joint venture with the Nuclear Power Corporation of India Limited (NPCIL). The LTSSHF has completed 16 out of the 24 projects of forging for nuclear steam generators.
Conclusion
In conclusion, the future of the nuclear sector depends on technological innovation, regulatory developments, and the global push for decarbonization. The government seeks sustainable energy solutions, nuclear power remains a vital component of the energy mix. The government’s commitment is evident through increased budget allocations and partnerships with the private sector for developing small modular reactors and advanced technologies.
As the country aims to achieve net-zero emissions by 2070, nuclear energy will play a crucial role along with renewable sources. The nuclear sector’s growth presents significant opportunities for investment and technological advancement, positioning India as a major player in the global nuclear energy landscape. What do you think about the nuclear sector’s future and key players such as NTPC, HCC, BHEL, L&T, and MTAR Technologies? Let us know in the comments below.
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