Private sector eyes India's nuclear push, but policy gap remains: SBI

India’s initiative to reach 100 GW of nuclear power capacity by 2047 is attracting considerable interest from the private sector; however, to ensure that it fulfills at least 50 percent of this goal, existing policy gaps must be resolved promptly, as stated in a report by SBI Capital Market.

The report also stated that the opportunity extends beyond merely project development. Many different companies can gain advantages throughout the nuclear power ecosystem.

It said "Addressing existing policy gaps is crucial to ensure that the private sector leads the development of 50 per cent of the targeted 100 GW nuclear capacity by 2047".

This encompasses manufacturers of reactors, suppliers of turbines and generators, providers of precision control and equipment, and experts in cooling systems. The potential is evident—what is still unclear is whether the appropriate policy "triggers" will be implemented to activate the sector.

The government has made a significant move by initiating the BSR (Bharatiya Saksham Reactor) program. This enables the private sector to create Pressurised Heavy Water Reactors (PHWRs) for internal consumption.

The report stated that the initiative has rigorous entry requirements to guarantee that only dedicated and skilled participants take part, thus also minimizing risks associated with execution and financing. The captive use model is an additional advantage, as it minimizes demand uncertainty.

The report indicated that an essential enhancement would be adding a compensation clause to safeguard private entities if the Department of Atomic Energy does not provide sufficient fuel and heavy water.