Private participation in nuclear power becomes a reality; NPCIL invites bids

Private participation in nuclear energy generation will soon become a reality, as the Nuclear Power Corporation of India (NPCIL) has today invited Request for Proposals (RFP) from Indian industries for setting up 220 MW Bharat Small Reactors (BSR) for captive use.

So far, the public sector NPCIL is the sole authority in India that is allowed to set up and run civil nuclear plants. BSRs are 220 MW Pressurised Heavy Water Reactors (PHWR) with safety and performance records and are compact and tailored for captive use. Compared to large nuclear plants, BSRs offer flexibility in siting and deployment, less construction timelines and cost-effectiveness. Globally, the trend is towards setting up such small modular reactors (SMRs).

BSRs can provide a sustainable solution for the decarbonisation of hard-to-abate industries. It would also help these industries secure economic benefits resulting from savings in carbon emission-related taxes, thus increasing the competitiveness of their products in the global markets, said NPCIL.

NPCIL operates 24 nuclear power reactors at seven sites across the nation, with an installed capacity of 8,180 MW. There are 15 PHWR reactors of 220 MW capacity. India plans nuclear energy to have a significant share in the electricity mix of India by the year 2047. As a medium-term target, the plan is to triple nuclear power generation capacity by 2030, from the current 8.1 gigawatts (GW).

In the Union Budget 2024-25, Finance Minister Nirmala Sitharaman had announced the allowance of BSRs with private capital within the existing legal framework and approved business models. The last date for receipt of the RFP proposal is 31.03.2025. The project is to be constructed by the private player under the supervision and control of NPCIL, and on completion, the asset will be transferred to NPCIL for operation under a long-term comprehensive O&M agreement.

NPCIL said that the fuel, spent fuel and heavy water shall always remain the property of the Department of Atomic Energy (DAE). At any point of time, the USER shall not have any ownership claim on the fuel, spent fuel and heavy water. The user also will have to pay decommissioning fees. The area of land required for twin-unit 220 MWe BSR is around 331 hectares, considering an exclusion zone radius of 1 km, and 87 hectares, considering an exclusion zone of 0.5 km from the centre of both reactors. The land required for the township including CISF colony will be additional.