Private sector firms file NDAs with NPCIL, eye captive nuclear power for clean energy transition; JM Financial reaffirms Buy rating
Major Energy Players Enter India’s Nuclear Space
In a landmark move, Tata Power, JSW Energy, and four other major Indian industrial players have formally begun their journey into nuclear power. They have submitted the necessary documentation to sign Non-Disclosure Agreements (NDAs) with the Nuclear Power Corporation of India Limited (NPCIL). This is the first formal step in participating in the Bharat Small Reactors (BSRs) programme for captive power generation.
- The other companies include Adani Power, Hindalco Industries, Jindal Steel, and Reliance Industries.
- This is a critical milestone in India’s efforts to decarbonize industrial energy consumption.
JM Financial Backs Tata Power and JSW Energy
JM Financial has reiterated its Buy rating for both Tata Power and JSW Energy, citing the strategic long-term potential of their involvement in the nuclear program.
- Target price: ₹726 for JSW Energy and ₹436 for Tata Power.
- The brokerage firm sees nuclear energy as a game-changing opportunity for power companies focusing on clean, reliable, and efficient energy solutions.
Bharat Small Reactors: A New Nuclear Frontier
Launched by NPCIL, the BSR initiative is a bold attempt to involve the private sector in nuclear energy generation — a domain historically dominated by public entities. The program invites Indian firms to co-develop 220 MW Pressurized Heavy Water Reactors (PHWRs) tailored for captive use by energy-intensive industries.
- These compact reactors aim to offer low-carbon, dependable energy to large industrial units.
- The initiative aligns with India’s push toward energy security, sustainability, and industrial decarbonization.
Why Captive Nuclear Makes Strategic Sense
The 220 MW BSRs are purpose-built to cater to the internal energy needs of companies, helping them reduce reliance on grid power and fossil fuels.
- The reactors will operate within India’s legal and regulatory nuclear framework.
- By enabling private investment in nuclear energy, the initiative introduces a new business model in the sector.
- These developments are expected to help industries cut emissions, lower power costs, and boost operational efficiency.
Site Identification Underway Across Six States
In parallel with NDA filings, all six participating companies have submitted preliminary site reports for 16 proposed locations across six Indian states.
- Gujarat leads with five proposed sites.
- Madhya Pradesh follows with four, while Odisha has three.
- Andhra Pradesh, Jharkhand, and Chhattisgarh round out the list with one or two sites each.
NPCIL has initiated communication with the respective state governments, requesting their support in site investigations, and allocation of land and water resources — both critical for nuclear development.
Nuclear Energy: India’s Next Industrial Power Play
This strategic alignment between India’s largest industrial firms and the NPCIL signals a transformative shift in the country’s energy landscape. By opening the door to private nuclear participation, the BSR program may significantly accelerate India’s net-zero goals while ensuring energy-intensive sectors like metals, cement, and chemicals gain access to clean and consistent power.
