State-run NTPC is planning to float a global tender for large nuclear power plants with combined capacity of 6-10 giga watts (Gw) soon, marking the country’s largest power producer’ graduation to utility-scale production of nuclear energy.
The company has already sought the government’s permission for the same and aims to launch the tender once clearance is received, an official told FE. The units, six in number, will have the Pressurised Water Reactors (PWRs).
Indigenisation crucial for capital cost reduction
If substantial manufacturing of equipment is indigenised, the capital costs of these reactors may come down from Rs 30 crore per MW to about Rs 22-25 crore per MW, sources said. The tender size could therefore be in the range of Rs 1.3 lakh crore to Rs 2.2 lakh crore assuming the cost efficiencies have been achieved.
The tender will follow an Expression of Interest (EoI) issued by NTPC earlier this year to study the market interest and global suppliers to support NTPC’s nuclear goals. “We floated for global EoI to know the market and if the global suppliers and OEMs (original equipment manufacturer) were interested in the Indian market,” the official said.
The company is optimistic of the collaboration with Russia in the nuclear sector followed by Russian President Vladimir Putin’s visit to New Delhi last week. NTPC is already in the process of signing a non-disclosure agreement with Russia’s state-owned Rosatom to enable deeper technical and commercial discussions, sources said.
“Rosatom had also participated in the EoI. We are signing an NDA (non-disclosure agreement) with them so that there is more information on the technology and commercial aspects. This will help us in taking forward the adoption of PWR technology. It is a normal practice before a tender,” the official said, who did not wish to be identified.
The company has already received the power ministry’s nod for the NDA and will soon be signing the agreement.
Global Collaborations
As NTPC is pursuing a competitive process, companies such as France’s EDF have also expressed interest in participating, the sources said.
In its earlier EoI, the company has mentioned that it intends to explore the vendor base who are willing for cooperation in indigenising pressurised water reactor technology and establishing large capacity in India on concept of commissioning basis with a target capacity of 15 GW (±10%).
NTPC had then said that it was under discussions with NuScale Power, Rosatom, Westinghouse Electric Company, and Holtec International for importing required technology for setting up nuclear power plants which are subject to the Atomic Energy Regulatory Board’s approval.
During the frequently held 23rd India–Russia Summit, the two countries reaffirmed their cooperation in the energy sector with emphasis on civil nuclear energy, critical minerals, and partnership in clean energy.
The sides agreed to accelerate technical and commercial discussions on the VVER (a type of pressurised water reactor) of the Russian design, research and joint development of nuclear plants, localization and joint manufacturing of nuclear equipment and fuel assemblies for Russian designed large capacity NPPs subject to terms and conditions as mutually agreeable.
There is also a plan to cooperate in construction of small modular reactors and floating nuclear plants.
India aims to install 100 GW of nuclear capacity by 2047. To achieve this, the Central Electricity Authority (CEA) has envisaged investments of Rs 19.28 lakh crore. NTPC alone is aiming to commission 30 GW of nuclear capacity by 2047. The company has formed a wholly-owned subsidiary, NTPC Parmanu Urja Nigam Ltd, to undertake its nuclear operations.
The CEA also recommended allowing foreign direct investment (FDI) up to 49% in the sector to enable technology providers and equipment suppliers for India’s nuclear goals.
It stressed on govt-to-govt agreement (bi-lateral or multilateral) with countries of interest (i.e. having significant uranium reserves – Australia, Mongolia, Russia) and pursuing Nuclear Suppliers Group waiver/ membership that can help in ensuring uninterrupted fuel supply and energy security.