India’s First Private Nuclear Tender Faces Delays Over Cost and Funding Challenges Published By Anupam Nath India’s ambition to include private players in the nuclear power sector has hit a roadblock. The country’s first-ever tender inviting private companies to participate in small nuclear reactor (SMR) projects — a move seen as a landmark reform in the energy sector — is facing repeated delays. Issues around cost, ownership, and funding have clouded the future of this pioneering initiative, which is being led by the Nuclear Power Corporation of India Limited (NPCIL).---Private Sector InvolvementThe government had hoped that allowing private participation would accelerate the development of small modular reactors (SMRs) and reduce the country’s dependence on fossil fuels. Major industrial players such as Tata Power, Reliance Industries, Adani Energy, and Jindal Power expressed interest and even submitted necessary documents to NPCIL.However, despite the initial enthusiasm, several companies raised serious questions about ownership, operational structure, and financial viability. NPCIL announced the tender in March 2024, aiming to develop reactors of 10 to 20 megawatts capacity under the Bharat Small Reactor (BSR) program.---Cost and Tender DelaysThe project soon ran into trouble due to complex financial terms and outdated policies. Private firms complained that NPCIL’s “expertise charge” — a fee imposed for providing technical know-how — was too high, while the rate of return on investment (around 68.5% load factor) was unviable.As a result, delays have crept into the tender process. Many bidders have yet to sign non-disclosure agreements, and several proposals remain under review. The tender also requires private players to transfer the reactor’s asset to NPCIL at no cost — a clause that companies find highly restrictive.---Technical ConcernsExperts have also pointed out that the Bharat Small Reactor design is based on an older 220 MW pressurized heavy-water reactor model, which, though reliable, is less advanced than modern light-water reactor (LWR) technology. Nations like Canada and the U.S. have already transitioned to newer, safer designs, making India’s approach appear somewhat outdated.---The Road AheadDespite the challenges, this initiative marks a bold step toward reforming India’s nuclear power sector. The introduction of small modular reactors could significantly contribute to the country’s clean energy transition, offering stable power generation with minimal carbon emissions.To make this vision a reality, experts suggest the government must revisit the financial structure, simplify licensing regulations, and ensure long-term clarity for private investors. If these issues are addressed, India’s private nuclear program could emerge as a global model for sustainable energy collaboration between the public and private sectors.---ConclusionIndia’s journey to open up its nuclear energy sector to private companies has just begun, and while the road is full of challenges, the potential rewards are immense. This initiative could redefine India’s clean energy future — if it can overcome the hurdles of cost, regulation, and trust.
