NTPC-NPCIL JV floats ₹28,000 crore tender for nuclear power plant in Rajasthan

New Delhi: India has taken another step towards expanding its nuclear power programme by inviting bids for a ₹28,000-crore contract to build the nuclear island of the proposed 4x700 MW Mahi Banswara project in Rajasthan.

The tender, floated by Anushakti Vidhyut Nigam Ltd, a joint venture between NTPC and Nuclear Power Corporation of India Ltd (NPCIL), is the largest such contract issued under India's indigenous pressurized heavy water reactor programme, and underpins the government's plan to rapidly scale up nuclear capacity.

This will also be the country's first nuclear power plant not completely owned by state-owned NPCIL. All of the 8.8GW of India's installed nuclear power capacity is fully owned by NPCIL.

The Nuclear Island EPC package includes nuclear buildings raft, reactor building internal structure, heavy water upgrading plant building & tower, plant water systems and waste management systems, among others.

A nuclear island is the core section of a nuclear power plant that houses the reactor and all systems necessary to produce steam and ensure safe nuclear operation.

The company has sought bids till 30 September 2026. Anushakti Vidhyut plans to build four reactors of 700MW each based on locally developed pressurized heavy water technology.

In a post on X, NPCIL had on Wednesday said: “Estimated at over ₹28,000 crore, this is the largest Nuclear Island EPC package ever floated for India’s indigenous Pressurised Heavy Water Reactor (PHWR) programme. The comprehensive package covers engineering, manufacturing, supply, civil construction, installation, testing and commissioning assistance of critical nuclear island systems for four PHWR units of 700MWe capacity each.”

The move comes in the backdrop of India stepping up efforts to scale up nuclear power generation to achieve energy transition and security. The country has a target to install 100GW of nuclear power capacity by 2047. According to the government, India's nuclear capacity is set to grow to 22.38GW by 2031-32 with indigenous 700MW and 1,000MW reactors.

Although not renewable, nuclear is a non-fossil source of energy and, therefore, cleaner than oil, gas or coal, making it a key energy source for energy transition goals.

In 2024-25, nuclear power plants produced 56,681 million units of electricity, equivalent to 3.1% of the country's total electricity generation, according to data from the power ministry.

The government has opened up nuclear power generation to the private sector and eased liabilities on suppliers through the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (Shanti) Bill, 2025.

Several private companies, including the Adani Group, Reliance Industries, Larsen & Toubro (L&T), and Tata Power Ltd, as well as public sector energy companies, such as IndianOil Corp. Ltd and ONGC Ltd, have announced plans to enter the space.

NTPC Ltd, India's largest power generator, also set up a subsidiary focused on nuclear power.

In the budget for FY26, the government announced the Nuclear Energy Mission and allocated ₹20,000 crore for the research, design, development and deployment of small modular reactors, aiming to operationalize at least five of them by 2033.

Earlier this year, India took a major step towards nuclear fuel self-reliance when its indigenously developed Prototype Fast Breeder Reactor (PFBR) at Kalpakkam in Tamil Nadu attained criticality on 6 April. This is the stage when a nuclear chain reaction can sustain itself.

This will enable India to leverage its vast reserves of thorium and reduce dependence on uranium imports. Once the reactor is fully operational, India will become only the second country after Russia to have a commercial fast-breeder reactor.