NTPC in talks with 16 states for land to build nuclear power plants

“NTPC is now talking to the governments of 16 states and looking for land there for nuclear power plants,” said one of the two people mentioned above.’

The move is in line with the company’s long-term plan to set up 30 GW of nuclear power capacity by 2047 under the national target of 100 GW. In January this year, the government-owned company had incorporated a subsidiary focussed on nuclear power, NTPC Parmanu Urja Nigam Ltd.

The second person cited above said NTPC is looking at setting up large scale nuclear power plants, without giving any number. The company would develop plants with pressurised heavy water reactors (PHWR) in the 700-1,600 MW capacity range. “While the company would work standalone for smaller capacities, for capacities like 1,600 MW, it would look at collaboration with foreign players,” the person added.

The company has already forayed into the nuclear power space and prime minister Narendra Modi laid the foundation stone for the 4×700 MW Mahi Banswara project in Rajasthan in September. This project is being developed under the joint venture with Nuclear Power Corp of India Ltd.

As part of its endeavour for nuclear power generation, NTPC is already looking to acquire uranium mines globally and about 50-60 of its employees are being trained for the sector at the company’s Power Management Institute in Noida.

With the government setting an ambitious energy transition target of 500 GW non-fossil capacity by 2030, nuclear power is expected to be a major component of India’s energy basket as it is non-fossil, cleaner than coal, and would provide stability to the grid at a time when renewable energy generation is also growing.

The industry is awaiting amendments to nuclear energy laws, which would allow participation of the private sector and help bring in investments and technology partnerships.

Currently, India has about 8 GW of installed nuclear power capacity. An SBICaps report, had in April said reducing construction timelines from 10 years to the global best of 6 years, mitigating historical cost overruns are crucial for capital cost optimisation.

“Attracting global investment through a 49% FDI allowance will augment capital inflows. Furthermore, a comprehensive systemic reform encompassing a single-window clearance mechanism, streamlined land acquisition norms, a reduced exclusion zone radius around plants, and enhanced autonomy for the AERB is urgently required,” it said.

Amid its diversification process, NTPC is also foraying into the coal gasification space, said the first person mentioned above. “NTPC would use the coal produced for its captive consumption for conversion to synthetic gas. It is eyeing an annual syngas production capacity of 5-10 million tonne,” the person said

Apart from using the gas for power generation at its own gas-based power generation plants, the company will also sell it to other consumers, said the two people cited above.

With the fast-closing window for the use of coal amid net zero goals, India, which has the world’s fourth largest reserves of coal, is looking at increasing its utilization to produce gas that is expected to be used in place of imported liquefied natural gas (LNG).

NTPC will float a tender seeking bids for technical consultancy services by March, the first person said, adding that the company is open to working with other firms such as Coal India on this front.

NTPC did not immediately respond to queries emailed on Wednesday evening.