Gautam Adani’s conglomerate is reportedly in talks with the Uttar Pradesh government to build a commercial nuclear power project, according to Bloomberg.
According to Bloomberg, the proposed project would involve setting up eight small modular reactors (SMRs) of 200 megawatts (MW) each, giving the Adani Group a total nuclear capacity of about 1,600 MW, according to the people, who asked not to be identified as the talks are private.
Discussions centred on SMR-based project
According to the Bloomberg report, the Uttar Pradesh government has not yet identified a suitable riverside location for the project, which is required to ensure a steady water supply for the reactors.
The move is part of Adani’s efforts to broaden its renewable and low-carbon energy portfolio, at a time when India’s power demand is rising sharply due to data centre expansion and the growing use of artificial intelligence-driven systems.
Nuclear sector opened to private investment
Adani’s discussions come as the Narendra Modi-led government seeks to diversify India’s energy mix and reduce dependence on fossil fuels. India’s Parliament on Thursday approved changes to open up the nuclear sector to private investment, a move aimed at unlocking investment opportunities estimated at $214 billion, Bloomberg reported.
Under the Nuclear Energy Mission announced in the Union budget in February, the central government said it would spend Rs 200 billion on research and development of small modular reactors.
Public-private partnership model
The discussions between the Adani Group and the Uttar Pradesh government are centred around a public-private partnership model. Under the proposed structure, state-run Nuclear Power Corporation of India Ltd. (NPCIL) would operate the plant on behalf of the Adani Group, the people said.
The state-run Bhabha Atomic Research Centre (BARC) is working on the design and development of the 200 MW SMRs that Adani plans to deploy, according to the Bloomberg report. The project is expected to take five to six years to complete after receiving government approvals, with timelines extended in part because Adani would be a first-time entrant into the nuclear sector.
Other conglomerates eye nuclear opportunity
Other Indian conglomerates, including Tata Group, Reliance Industries Ltd. and JSW Group, are also seeking access to the nuclear power sector, PTI had reported earlier.
India currently operates about two dozen nuclear reactors across seven locations, which contribute roughly 3% of the country’s electricity generation. These reactors have an installed capacity of about 8,780 MW, with plans underway to raise capacity to 13,600 MW through projects at various stages of implementation. The government has set a target of achieving 100 GW of nuclear power capacity by 2047.
Representatives of the Uttar Pradesh government, the Adani Group and the Department of Atomic Energy did not immediately respond to Bloomberg’s requests for comment.
