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Electric utilities

NPCIL Seeks Partnerships with State-Run Firms for Nuclear Power Projects

Strategic Insights

— 1 min read

The Nuclear Power Corporation of India Ltd (NPCIL) is looking to partner with state-run firms, including Oil & Natural Gas Corporation (ONGC) Ltd, Indian Oil Corporation (IOC) Ltd, and NTPC Ltd to finance its upcoming nuclear power projects. According to NPCIL Chairman and Managing Director Shreyans Kumar, several Public Sector Units (PSUs) have expressed interest in collaborating with the company. IOC has agreed to acquire a 26% equity stake in NPCIL's upcoming nuclear power plant at Rawatbhata in Rajasthan for Rs 9 billion, while NTPC has agreed to buy a 49% stake in NPCIL's upcoming projects in Madhya Pradesh and Haryana. Meanwhile, ONGC has shown interest in picking up a minority stake in some projects, with talks underway.

Key Takeaways:

  • NPCIL is seeking partnerships with state-run firms, including ONGC, IOC, and NTPC, to finance upcoming nuclear power projects.
  • IOC has agreed to acquire a 26% equity stake in NPCIL's upcoming nuclear power plant at Rawatbhata in Rajasthan for Rs 9 billion.
  • NTPC has agreed to buy a 49% stake in NPCIL's upcoming projects in Madhya Pradesh and Haryana.
  • ONGC has shown interest in picking up a minority stake in some projects, with talks underway.
  • NPCIL has started construction work on two 700 megawatt indigenous nuclear power reactors at Rawatbhata, with an estimated cost of Rs 120 billion and a scheduled operational date of 2016.
  • The project will be financed through 70% debt and 30% equity.
  • Each twin reactor is estimated to cost between Rs 110 billion and Rs 140 billion.
  • NPCIL aims to establish 14 nuclear reactors of 700 megawatt power production capacity each by 2020.

Statistics:

  • Rs 9 billion: The amount IOC agreed to acquire a 26% equity stake in NPCIL's upcoming nuclear power plant at Rawatbhata in Rajasthan.
  • Rs 120 billion: The estimated cost of the nuclear power project at Rawatbhata.
  • 70%: The percentage of debt financing for the project.
  • 30%: The percentage of equity financing for the project.
  • 110 billion - 140 billion Rs: The estimated cost of each twin reactor.
  • 14: The number of nuclear reactors NPCIL aims to establish by 2020.
  • 700 megawatt: The power production capacity of each reactor.

Sources:

  • "NPCIL looks to partner state-run firms to finance upcoming nuclear power projects" (IANS)

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