Nuclear Energy Mission: L&T, BHEL, MTAR, Power Mech among key beneficiaries, says Emkay

Larsen & Toubro (L&T), L&T, BHEL, MTAR Technologies, Venus Pipes and Tubes, Power Mech Projects, KSB, Kilburn Engineering, Walchandnagar Industries and unlisted Megha Engineering & Infrastructure may emerge as key beneficiaries of India’s nuclear capacity expansion, Emkay Global said in its latest note. The brokerage viewed the government’s Nuclear Energy Mission and the planned multi-decade scale-up of nuclear capacity as a major opportunity for the domestic engineering and manufacturing ecosystem.

In the value chain, L&T and Walchandnagar Industries could supply calandria, moderator heat exchangers, end shields, pressurisers, distillation columns, ECCS accumulators, reactor headers and steam generators. BHEL too could provide most of these components.

KSB could supply reactor coolant pumps; MTAR Technologies could offer fuel machining heads, bridge and column systems and coolant channel assemblies; Venus Pipes and Tubes could supply stainless steel high-precision and heat-exchanger tubes as well as hydraulic and instrumentation tubing; and Kilburn Engineering could provide air-cooling units and heavy-water vapour recovery systems.

Emkay said India, like China, the US and Japan, aimed to raise its nuclear capacity from 8.8 GW (25 reactors) to 100 GW by 2047, with an interim target of 22 GW by 2032. Such an expansion would convert nuclear power into a long-duration national programme, creating sizeable opportunities across construction, manufacturing, fuel, SMRs, operations and services, financing and exports.

The brokerage noted that the government launched the Nuclear Energy Mission with a focus on R&D of small modular reactors (SMRs). The Centre allocated Rs 200 billion to develop at least five indigenously designed and operational SMRs by 2033. Emkay added that the government’s move to encourage private-sector participation through proposed amendments to the Atomic Energy Act would help strengthen the domestic nuclear manufacturing ecosystem.

Emkay highlighted that several countries globally re-evaluated nuclear power as a critical component of their energy mix, driven by net-zero goals and the need for energy security. While renewables remained central to decarbonisation, their intermittency reinforced the need for firm, continuous, low-emission power, making nuclear increasingly attractive.

It recalled that at COP28 in December 2023, 22 nations, including the US, France and the UK, committed to tripling global nuclear capacity by 2050. Industry data showed around 70 reactors under construction and plans for another 100, with Asia—particularly China—driving nearly half of the additions.

Emkay said India, through NPCIL, moved to scale up its nuclear fleet to 100 GW by 2047, with a milestone of 22 GW by 2032. More than 6 GW of capacity remained under construction and another 7 GW at the pre-project stage. It added that NTPC planned 30 GW of nuclear capacity by 2047 to supplement the national target. In the Union Budget for FY26, the brokerage pointed out, the government formalised the Nuclear Energy Mission, centred on SMR development. The programme targeted at least five domestically designed SMRs entering service by 2033, opening space for technology partnerships and deeper localisation.

According to Emkay, achieving 100 GW of nuclear capacity would require adding more than 4 GW annually over two decades, necessitating a significant scale-up of domestic manufacturing for reactor components, BoP systems and related technologies. The brokerage said the government explicitly promoted PPP involvement in nuclear component manufacturing, SMRs and hydrogen production. It highlighted that L&T already played a central role. A major development came when the US Department of Energy cleared Holtec International to design and build SMRs in India with L&T, the Tata Group and Holtec Asia, strengthening opportunities for private-sector integration and supporting the Make in India initiative.

Emkay said L&T emerged as one of the leading beneficiaries within its coverage, supported by its established capability in supplying critical equipment—reactor pressure vessels, steam generators, heat exchangers and specialised forgings—and its execution record in turnkey EPC contracts for nuclear plants.