The Indian government has approved the creation of a joint venture between Nuclear Power Corporation of India Limited and National Thermal Power Corporation to construct, own and operate nuclear power plants in India.

Under Indian legislation, only two companies - Nuclear Power Corporation of India Ltd (NPCIL) and Bharatiya Nabhikiya Vidyut Nigam Limited (Bhavini, set up to build and operate fast reactors) - are legally allowed to own and operate nuclear power plants in India, but a 2016 amendment to the 1962 Atomic Energy Act allows public sector joint ventures.

State-owned National Thermal Power Corporation (NTPC) agreed with NPCIL to form a joint venture for nuclear power plant construction as long ago as 2011, and last year signed a supplementary joint venture agreement for the development of six 700 MWe Indian-designed pressurised heavy water reactors (PHWRs), including the four earmarked for construction at Mahi Banswara in the state of Rajasthan. These units are amongst a list of ten PHWRs already accorded administrative approval and financial sanction to be built in “fleet mode”.

On 11 September, the government approved the formation of Anushakti Vidhyut Nigam Ltd (Ashvini), a joint venture between NPCIL (51%) and NTPC Ltd (49%). The companies were informed of that decision on 17 September.

In addition, the government has approved the transfer of the project to build four 700 MWe PHWRs at Mahi Banswara from NPCIL to Ashvini.

NTPC said that, in addition to the Mahi Banswara project, “Ashvini shall also pursue other nuclear power projects in different parts of the country”.

The government also approved exemption to NPCIL to invest more than INR5 billion (USD59.7 million) and exemption to NTPC to invest more than INR50 billion in a single joint venture or subsidiary company.

“This will enable adequate financing for accelerated nuclear power capacity addition in India,” the two companies said.

Welcoming approval for the joint venture, NPCIL and NTPC said: “This will pave the way for pooling of resources from both NTPC and NPCIL, in terms of finances, technology and project expertise, for the rapid expansion of nuclear power productivity in the country to meet the target of net-zero by 2070.”

Last month, NTPC - India’s largest power company - confirmed it intends to set up a 100% nuclear power subsidiary, called NTPC Nuclear Power Company, with NTPC Chairman and Managing Director Gurdeep Singh saying the utility sees nuclear capacity - including small modular reactors - as central to its plans. Singh said the company is actively looking for locations for nuclear power plants, including in Gujarat, Tamil Nadu, Chhattisgarh, Odisha and Karnataka.

According to a Reuters report in February, government sources said India was planning to invite private firms to invest some USD26 billion in its nuclear energy sector, and is in talks with “at least” five private firms including Reliance Industries, Tata Power, Adani Power and Vedanta Ltd to invest around INR440 billion (USD5.30 billion) each.

Plans are not yet finalised, but the government hopes to use the investments to build 11,000 MWe of new nuclear capacity by 2040, the sources said. The plants would be built and operated by NPCIL, with the investing companies earning revenue from electricity sales from the plants. This hybrid plan would not require any amendment to India’s Atomic Energy Act of 1962 - which prohibits private control of nuclear power generation - but would need to be approved by the Department of Atomic Energy, they said.

As well as further 700 MWe PHWRs, Indian plans envisage the construction of large reactors from overseas vendors, including further Russian-designed VVER reactors in addition to those already in operation and under construction at Kudankulam in Tamil Nadu. In August 2023, Minister of State Jitendra Singh also told the country’s parliament that the government was considering options for small modular reactors, and looking at ways to allow the participation of the private sector and start-ups in such projects.