India’s First Private Nuclear Tender Faces Delays Over Cost and Funding Issues

New Delhi, Oct 7 (KNN) India’s ambitious plan to involve private companies in nuclear power generation has hit major obstacles.

The country’s first private-sector nuclear power tender, launched in March 2024, has been delayed due to cost disputes and funding challenges.

The Nuclear Power Corporation of India Ltd (NPCIL), which issued the tender for small modular reactors, has received over 680 technical and financial queries from interested bidders.

Companies such as Tata Power, Adani Energy, and Reliance Industries have expressed concerns about the tender’s financial structure and operational terms.

A key issue revolves around the high service charges imposed by NPCIL and the overall project cost. Private players have argued that the proposed terms make the project commercially unviable without clearer funding arrangements and reduced financial risk. They also seek greater clarity on ownership, liability, and profit-sharing models.

Industry experts warn that if these issues remain unresolved, the project could discourage future private participation in India’s nuclear sector — a space historically dominated by state-run entities.

The government had hoped this tender would mark a turning point by introducing private innovation and investment into the energy mix.

The ongoing uncertainty underscores the broader challenges in opening India’s nuclear industry to private capital. For successful collaboration, experts suggest that the government may need to revise the financial terms and ensure a more balanced risk-sharing framework.

Despite the setbacks, the initiative remains a crucial experiment in expanding India’s clean energy capacity and reducing dependence on fossil fuels.

(KNN Bureau)