Tweak nuclear project conditions to make it viable: Industry

Top industrial groups such as Adani, Reliance, Tata, Aditya Birla and JSW who have expressed interest in nuclear power sector have flagged that conditions imposed by the Nuclear Power Corporation of India (NPCIL) will make nuclear projects unviable.  

In written responses to the NPCIL, the industry players listed the conditions by NPCIL on private players in its request for proposal for 220 MW pressurised heavy water reactor (PHWR) Bharat Small Reactors (BSRs).

The companies have flagged the high operation and maintenance cost cited by NPCIL for setting up BSRs, levy of an exorbitant expertise fee at 60 paise/ KWH of nuclear power generated, which translates into Rs 150 crore per project, lack of financing guarantee with assets remaining under NPCIL’s control, and challenges of land availability. They have also sought single window clearances and freedom to decide tariffs.

According to documents accessed by Business Today, the industry players have sought several changes to the RFP, floated on December 31, 2024, saying such conditions make nuclear projects unviable.

Reliance Industries has asked NPCIL to explain the methodology used to arrive at the PLF as the plant at Kaiga, using the same reactors, has been averaging above 90% every year over the last five years. The five-year average is 95%

Adani Energy Solutions has said the operational expenditure cited by NPCIL is too high and will make the project unviable.

“The operational expenditure of thermal power plants is Rs 20-22 crore per MW, and the same has reduced over a period. It is also noted that the operational expenditure of nuclear power plants, in a report by the Danish Energy Agency and the Central Electricity Authority, is around Rs43 lakh/MW, likely to fall further. Hence, operational expenditure of Rs 47.47 lakh/MW (as per 2017-18 estimates) as given in the RFP is significantly on the higher side and makes the overall project unviable,” Adani Energy Solutions has said.

Though the government is engaging with the industry to ease some of these conditions and looking at the qualifying criteria for companies which will operate nuclear power plants, experts who track the sector say not all demands can be met due to the safety and security aspects of operating nuclear reactors.

In a change in stance, India is mulling to allow private players to mine, import, and process uranium, while reprocessing for fuel usage in nuclear power plants will remain with the government.

The industry has also flagged NPCIL’s proposal to maintain the plant load factor (PLF), which shows the efficacy and profitability of a plant, for nuclear power at 65%, significantly lower than its own reactors, which typically reach 90-95%.