NPCIL joint ventures: NTPC deal, 11 GW goal by 2040

What changed now

Nuclear Power Corporation of India Ltd (NPCIL) has said it is seeing growing interest from other central public sector undertakings (PSUs) to jointly develop nuclear power plants. NPCIL chairman and managing director Bhuwan Chandra Pathak told The Economic Times that the company is looking at tie-ups with additional PSUs, beyond existing arrangements. Indian Oil Corporation (IOCL) and Indian Railways were cited as entities that have shown willingness to participate.

The development comes alongside a key structural move already cleared by the government: a dedicated joint venture between NPCIL and NTPC for nuclear projects. This JV, called Anushakti Vidhyut Nigam Ltd (Ashvini), is positioned to take up specific nuclear builds within the constraints of India’s Atomic Energy Act.

NPCIL’s role and the legal framework

NPCIL is responsible for the design, construction, commissioning and operation of nuclear power plants in India, and it is wholly owned by the Government of India. Under Indian legislation, only two companies are legally allowed to own and operate nuclear power plants in India: NPCIL and Bharatiya Nabhikiya Vidyut Nigam Limited (Bhavini), which was set up to build and operate fast reactors.

India’s Atomic Energy Act of 1962 prohibits private control of nuclear power generation. The article notes that 2016 amendments allow public sector joint ventures, but do not extend to private sector companies and do not allow direct foreign investment in nuclear power generation, apart from participation in the supply chain.

This framework explains why the current momentum is centred on PSUs and PSU-led JVs, rather than private developers owning nuclear generation assets.

Ashvini: the NPCIL-NTPC joint venture

The government approved the formation of Anushakti Vidhyut Nigam Ltd (Ashvini) as a joint venture between NPCIL (51%) and NTPC Ltd (49%). The companies were informed of the decision on 17 September, following government approval on 11 September.

On 9 January, NPCIL and NTPC signed an amendment to their existing joint venture agreement dating from 2010. The amendment restructured the Ashvini joint venture to be held 51% by NPCIL and 49% by NTPC, and enabled transfer of the Mahi Banswara Rajasthan Atomic Power Project from NPCIL to Ashvini. According to NTPC, Ashvini will also pursue other nuclear power projects in different parts of the country.

The government also approved exemptions allowing NPCIL to invest more than INR 500 crore (INR 5 billion) and NTPC to invest more than INR 5,000 crore (INR 50 billion) in a single joint venture or subsidiary.

Mahi Banswara project transfer and reactor plan

The approved transfer relates to a four-unit nuclear project at Mahi Banswara in Rajasthan. The project involves four 700 MWe pressurised heavy water reactors (PHWRs). Separately, the broader programme referenced in the article includes development of six 700 MWe Indian-designed PHWRs, with the four earmarked for Mahi Banswara included in that set.

These units are among a list of ten PHWRs that have been accorded administrative approval and financial sanction to be built in “fleet mode”. The fleet-mode framing signals a standardised approach, although the article does not provide commissioning timelines or cost estimates for the PHWR fleet.

Kudankulam: construction status and design evolution

NPCIL’s near-term construction pipeline also includes Kudankulam. The article states that four units of Kudankulam nuclear power plants are under construction, with a total capacity of 4,000 MW.

In the longer-range “Nuclear Energy Parks” concept, Kudankulam phases 2, 3 and 4 are described as involving three more pairs of Russian AES-92 units with VVER-1000 reactors, taking the station toward eight units. The article adds that while 9,200 MWe had been envisaged, it now appears that after six 1,000 MWe reactors, units 7 and 8 will be the larger AES-2006 design with VVER-1200 reactors.

A separate section also describes Kudankulam as scheduled to have six VVER-1000 reactors built in collaboration with Atomstroyexport, with installed capacity of 6,000 MW of electricity.

NPCIL’s wider plan: five nuclear energy parks

Beyond individual projects, NPCIL intends to set up five further “Nuclear Energy Parks”. Each is described as having capacity for up to eight new-generation reactors of 1,000 MWe, or six reactors of 1,600 MWe, or simply 10,000 MWe at a single location.

The article states that by 2032, 40-45 GWe would be provided from these five parks. It also notes that five new energy parks include two that are proceeding and one that shows some promise, with Kudankulam among the named projects.

More PSUs expressing interest: IOCL and Indian Railways

Pathak said NPCIL is considering tie-ups with other central PSUs and indicated that interest has increased. IOCL is highlighted because it already has a joint venture with the nuclear power producer, and Pathak said NPCIL needs to operationalise that JV.

Indian Railways is also mentioned among those showing willingness to join. The article does not spell out the commercial structure for these arrangements, but it places the interest in the context of the legal position where public sector joint ventures are permitted.

Financing examples: the Nalco-NPCIL JV

The article provides a detailed financing snapshot from an earlier PSU JV model between NPCIL and National Aluminium Company Limited (Nalco). A Nalco-NPCIL joint venture planned to raise a term loan of up to INR 1,500 crore. Nalco’s finance director said the initial funding sought was INR 1,000-1,500 crore, with discussions with banks and a target to complete the process in two to three months.

In that JV, Nalco held a 26% stake with an option to raise it to 49%, with the rest held by NPCIL. The total project size was stated at INR 11,500 crore, with total debt requirement at INR 7,000 crore. The JV also explored bonds or external commercial borrowings (ECBs), while noting the need for a hedging mechanism if ECBs were used because plant earnings would be in Indian rupees.

The project described was a 2x700 MW build totalling 1,400 MW, with civil construction almost 87% complete at the time referenced.

Key facts at a glance

Market impact: what this signals for the nuclear buildout model

The immediate market relevance is less about stock-price reactions and more about how India structures nuclear capacity addition under existing law. The Ashvini structure widens the pool of public-sector capital and project capability while keeping nuclear plant ownership and operation within the permitted framework.

Separately, interest from PSUs such as IOCL and Indian Railways indicates that the government-owned ecosystem may be used to mobilise funding for long-gestation projects. The hybrid approach mentioned in the article also points in this direction: investors could earn revenue from electricity sales while plants are built and operated by NPCIL, and the model would not require amendments to the Atomic Energy Act but would require Department of Atomic Energy approval.

Why the story matters

The combination of fleet-mode PHWR approvals, the transfer of a four-unit project to a PSU JV, and reported interest from additional PSUs shows a policy-consistent route to scale nuclear generation without opening ownership to private developers. It also clarifies the contours of participation for large state-owned power companies like NTPC, which is significantly larger than NPCIL and sees itself as the main power producer.

For investors tracking India’s power sector, the key takeaway is structural: nuclear expansion is being pursued through government-owned entities and joint ventures, with financing flexibility created via investment-exemption approvals. The pace and selection of projects will still depend on administrative approvals, project execution, and site readiness, but the direction of travel described in the article is toward broader PSU participation.

Conclusion

NPCIL’s comments on growing PSU interest, coupled with the formalisation of the Ashvini joint venture and the transfer of the Mahi Banswara project, underline how India is trying to expand nuclear capacity while staying within statutory limits. Near-term construction at Kudankulam and the longer-term Nuclear Energy Parks plan provide the project pipeline context.

Next milestones to watch, based on the article, include operationalising existing PSU joint ventures mentioned by NPCIL and further Department of Atomic Energy approvals for investment and project structures that do not require legislative amendments.