Budget 2024-25: ONGC, NTPC, IOC going big on small modular reactors

State-run companies NTPC, ONGC and IOC are in talks with stakeholders for the implementation of large and small modular nuclear projects as mentioned in Finance Minister Nirmala Sitharaman's Union Budget 2024 speech.

Small Modular Reactors (SMR) have been gaining traction globally as low-cost clean energy sources of energy. They have a power capacity ranging from 30 MW to 300 MW and components, systems and structures can be manufactured in a factory before being transported as modules to sites for installation.  

Sitharaman in her budget speech mentioned that nuclear energy is expected to form a very significant part of the energy mix for Viksit Bharat. The government is looking to partner with the private sector for setting up Bharat Small Reactors, research & development of Bharat Small Modular Reactors, and research & development of newer technologies for nuclear energy.

Indian Oil is also exploring the possibility of implementation of large and small modular nuclear projects through the Joint Venture route. It already has a JV with Nuclear Power Corporation of India Limited (NPCIL) for nuclear power in the country and is also exploring collaboration in SMR. ONGC is also in talks for indigenous SMRs as a source of clean energy.

NTPC is continuously engaging with Bhabha Atomic Research Centre (BARC) to finalise the design of an Indigenous Small Modular Reactor (SMR) as part of its SMR development efforts. It is also working on light water reactors (LWR) and advanced SMRs (Gen IV reactors) in its nuclear technology development.

“We have plans on the nuclear side in terms of newer technology, be it in terms of SMR or you have pressurised heavy-water reactor (PHWR) also. So, these are at a more exploratory stage. We are planning to provide an SMR, predominantly in integral type,” the NTPC management said in the Q4 FY24 investor call in May.

The government has been working for the participation of the private sector and startups in the development of this critical technology within India, keeping in mind that technology sharing and availability of funding are the two crucial links for ensuring the commercial availability of SMR technology.

Being mobile and agile technology, SMR can be factory-built, unlike the conventional nuclear reactors that are built on-site. Thus, SMRs offer significant savings in cost and construction time. SMR is a promising technology in industrial de-carbonisation especially where there is a requirement of a reliable and continuous supply of power. It is said that SMR is simpler and safer than large nuclear plants.