The proposed unit, to be fully owned by NPCIL, will offer services such as design and engineering, help with operations and management, and regulatory support to private companies wanting to build pressurised heavy water reactor (PHWR) units, the type operated in the country by NPCIL, the officials told ET.
India is targeting 100 GW of nuclear power capacity by 2047 to meet rising energy demand and its clean energy and climate targets.
Of this, NPCIL is aiming to generate 54 GW. At the same time, it is open to supporting other entities looking to enter the sector.
ET BureauCabinet note ready for new NPCIL unit
SHANTI Act Impact
In December last year, the government promulgated the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, opening nuclear energy generation to the private sector. Until then, it was under government control, with NPCIL operating the existing nuclear power plants.
The DAE and NPCIL did not immediately respond to emails seeking comment.
Since NPCIL is the only company in India with expertise in nuclear power generation, it has been approached by private businesses for technical advice on setting up PHWRs, said the officials. In view of this, the government has proposed the creation of a consulting subsidiary of NPCIL.Several entities have shown interest in setting up the indigenous technology reactors, given their proven safety record and cost advantage, said one official. Even for light water reactors based on foreign technologies, the entities have sought NPCIL’s advice, the person said.
The DAE recently brought out draft rules and regulations supporting the SHANTI Act, enabling private companies to apply for licences to build, own, operate and decommission a nuclear power plant.
As per the draft proposal, the consulting unit will initially have three nominee directors of NPCIL, including a chief executive officer and chief financial officer, for managing the day-to-day operations.
The official cited earlier said that NPCIL may infuse the initial equity into the subsidiary as required, which could be used for infrastructure and other assets and could be increased as per the need.
ET had earlier reported private entities’ call for an independent body for techno-commercial support regarding aspects such as design, engineering, reactor technology, site selection, operational and maintenance strategies, and policy-related support to help new entrants navigate the tightly regulated sector.
A report from the DAE and the power ministry last year had also made a case for a dedicated and independent entity to provide technical support to other companies for PHWR technology and other indigenous technologies.