Nuclear power operator plans new design unit to support private players

Nuclear power operator intends new design unit to backing private players The proposal for the new vertical is at present under process, The Indian Express has learnt.

Key points

• 5 min read New Delhi Aug 27, 2026 04: 48 AM IST.
• Both Adani Group and Jindal Steel are planning to develop 10 GWe and 18 GWe of nuclear capacity, respectively, in the coming years.
• Queries sent to the DAE and NPCIL by The Indian Express did not elicit a response.
• Domestic PHWRs are considered the most viable nuclear option, at around Rs 18 crore/MWe, for the price-sensitive Indian power market.
• The cost of foreign technologies can be viable in India only with bulk purchases.

Months after the country's tightly regulated nuclear power sector was opened to private participation, the Nuclear Power Corporation of India Ltd (NPCIL) intends to set up a new design vertical which will provide technological backing to private players and state governments seeking to deploy indigenous nuclear reactor technology.

With the draft rules under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act – it was enacted in December 2025 – now published and anticipated to provide greater clarity on the legal framework around licensing for new nuclear projects once notified, the state-owned firm aims to streamline its functions through the new vertical.

This vertical will be a gateway for entities seeking access to pressurised heavy-water reactor (PHWR) technology and technical expertise, including technology backing, design reviews and quality assurance.

Meanwhile, the move comes against the backdrop of growing interest in PHWRs among prospective public and private sector entrants as a preferred technology for the initial phase of India's nuclear capacity expansion, given its established domestic supply chain and ecosystem.

At present, NPCIL implements PHWR-based nuclear power projects through indigenous technology developed in India. The country has a nuclear power capacity of 8.7 gigawatt-electric (GWe), all of which is run and operated by NPCIL.

Earlier, the Central Electricity Authority (CEA), in its roadmap for achieving 100 GWe nuclear capacity by 2047, had additionally identified PHWRs as a prime candidate for adoption by other public sector undertakings and private businesses.

"Nevertheless, NPCIL having in its own pipeline expansion aims may find it tough to hand hold all the new entrants interested in setting up PHWR plants. Therefore there is a compelling requirement for a dedicated and independent entity to provide technical backing to other utilities, " the CEA stated.

It suggested that the proposed agency could be established under the Department of Atomic Energy (DAE), with experts drawn from the Bhabha Atomic Research Centre (BARC), the Indira Gandhi Centre for Atomic Research and other specialised DAE units.

Among global nuclear reactor technologies, India's indigenous PHWR is seen as the most cost-effective option for its price-sensitive power market, where high project costs can undermine nuclear power's competitiveness.

India has seen similar challenges previously. The proposed French-assisted nuclear power project at Jaitapur in Maharashtra has remained stalled for years, with the high projected cost of electricity emerging a key hurdle to its progress.

Industry insiders remarked foreign reactor technologies such as light water reactors (LWRs) or pressurised water reactors (PWRs) are more expensive than indigenous PHWRs. While reactors from France and the US are estimated to cost much more, some estimates peg the cost of Indian reactors at around Rs 18 crore per megawatt-electric (MWe), compared with regarding Rs 34 crore per MWe for Russian reactors. Explained Why PHWRs are key to n-expansion.

Domestic PHWRs are considered the most viable nuclear option, at around Rs 18 crore/MWe, for the price-sensitive Indian power market. Imported Russian, French and US technologies cost a lot more. Established design standards and a mature domestic supply chain are being flagged as key advantages for deployment of PHWRs in the initial phase of nuclear expansion.

"The cost of foreign technologies can be viable in India only with bulk purchases. But that is tough at this stage as no one is anticipated to order 15 or 25 reactors in one go. So, unless the cost of foreign reactors comes down, private players are most probable to initially opt for PHWRs. It are at present more cost-effective, " a nuclear industry sector expert informed The Indian Express.

Industry executives additionally point to established design standards and a mature domestic supply chain as key advantages for deploying PHWRs during the initial phase of India's nuclear expansion.

Last week, executives from two leading Indian private firms, Adani Atomic Energy and Jindal Steel, stated the existing 700 MWe PHWR design could provide a practical starting point for scaling up nuclear capacity, given the availability of established design standards, a mature domestic supply chain and an established ecosystem of vendors and technical expertise.

According to them, foreign reactor technologies and small modular reactors (SMRs) could play a role at a afterwards stage as the sector matures.

In short, nuclear power operator plans new design unit to support private players is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.