India's NTPC sets up nuclear subsidiary

NTPC Parmanu Urja Nigam Limited (NPUNL) was incorporated on 7 January as a wholly-owned subsidiary of NTPC Limited. According to a filing by the company, the objective of NPUNL is "to carry on the business of planning and executing an integrated programme for harnessing and developing nuclear energy for generating electricity or other purposes on a commercial basis" as well as building, owning, operating and managing nuclear plants, promoting research and development, and selecting suitable sites for nuclear power stations and ancillary facilities.

Last September, the Indian government approved the creation of a joint venture between NPCIL and NTPC - India's largest power company - to construct, own and operate nuclear power plants in India: Anushakti Vidhyut Nigam Ltd (Ashvini). It also approved the transfer of the project to build four 700 MWe pressurised heavy water reactors (PHWRs) at Mahi Banswara from NPCIL to Ashvini.

On 9 January, NPCIL and NTPC signed an amendment to their existing joint venture agreement - dating from 2010 - to restructure the Ashivini joint venture to be held 51% by NPCIL and 49% by NTPC, and to transfer the Mahi Banswara Rajasthan Atomic Power Project from NPCIL to ASHVINI. This is in accordance with the government approval that was granted in September.

Only two companies - NPCIL and Bharatiya Nabhikiya Vidyut Nigam Limited (Bhavini, set up to build and operate fast reactors) - are legally allowed to own and operate nuclear power plants in India. Public sector joint ventures such as Ashvini are allowed under a 2016 amendment to the 1962 Atomic Energy Act, but this does not extend to private sector companies. However, NPCIL is aiming to involve private companies as well as public sector companies in its future expansion plans, and recently issued a Request for Proposals from 'visionary Indian industries' to finance and build a proposed fleet of 220 MW Bharat Small Reactors to help decarbonise Indian industry.