August 27, 2026

Central Times

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Nuclear Power Operator to Set Up New Design Unit to Back Private Sector Projects

Months after India opened its tightly regulated nuclear power sector to private participation, the Nuclear Power Corporation of India Ltd (NPCIL) plans to establish a dedicated design and technology unit. The proposed unit will provide technical support to private companies and state governments that want to develop nuclear power projects using India’s indigenous reactor technology. The proposal is currently under consideration. The move comes as the government seeks to expand nuclear power generation and encourage greater participation from new players. The new vertical could help private and public sector entrants access technical expertise and adopt domestically developed reactor technology more efficiently.

The proposal gained importance after the government released draft rules under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, enacted in December 2025. Once the government notifies the rules, they will provide greater clarity on licensing requirements for new nuclear projects. NPCIL now plans to streamline its operations by creating a specialised unit to support new utilities. The company is also responding to growing interest in Pressurised Heavy Water Reactors (PHWRs), which several public and private sector players are considering for the early stages of India’s nuclear expansion.

Indigenous PHWR Technology Gains Focus as India Targets 100 GW Nuclear Capacity by 2047

India has built significant expertise in PHWR technology and developed a strong domestic supply chain to support it. NPCIL currently operates the country’s entire nuclear power fleet using indigenous technology. India has around 8.7 gigawatt-electric (GWe) of installed nuclear capacity, all of which NPCIL operates. The Central Electricity Authority (CEA), in its roadmap for achieving 100 GWe of nuclear capacity by 2047, has identified PHWRs as a suitable technology for public sector undertakings and private companies. However, the expected expansion could increase the need for a separate organisation that can provide technical assistance to new participants.

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The CEA has earlier noted that NPCIL may struggle to provide extensive support to every new entrant because the company already has several projects in its own pipeline. It therefore recommended creating a dedicated agency to offer technical assistance to utilities planning PHWR-based projects. The CEA suggested placing such an organisation under the Department of Atomic Energy (DAE) and staffing it with specialists from institutions including the Bhabha Atomic Research Centre (BARC), the Indira Gandhi Centre for Atomic Research and other DAE units. The DAE and NPCIL did not respond to queries regarding the proposed design vertical.

NPCIL Plans Dedicated Design Unit to Provide Technical Support to Private Nuclear Power Firms

Cost considerations have also increased interest in India’s indigenous PHWR technology. Domestic reactors can offer a cost advantage over several imported designs, an important factor in India’s price-sensitive electricity market. High construction costs have affected earlier nuclear projects, including the French-supported Jaitapur project in Maharashtra, which has faced prolonged delays. Industry estimates indicate that Indian reactors may cost about Rs 18 crore per MWe, compared with around Rs 34 crore per MWe for Russian reactors. French and US reactor technologies could cost considerably more. Lower costs could therefore make indigenous PHWR technology an important part of India’s plan to expand nuclear power capacity.

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