India's NPCIL seeks proposals for privately funded small reactor projects

Thursday, 2 January 2025

Nuclear Power Corporation of India Ltd (NPCIL) describes Bharat Small Reactors - or BSRs - as compact 220 MW pressurised heavy water reactors that are tailored for "captive use". Minister of Finance Nirmala Sitharaman announced in the July 2024 budget that the government would partner with the private sector to set up BSRs as part of efforts to open up India's nuclear power sector for private investments as part of its efforts to achieve net-zero goals.

BSRs are planned to be set up with private capital, within the existing legal framework and approved business models. According to the Request for Proposals, the industrial party - referred to as the user - will have the right to the plants' electrical output, but the plant assets, "for purpose of operation, will get transferred to NPCIL". The user is expected to use the power for its own captive power requirements, but could sell the electricity to other customers at a tariff determined by the Department of Atomic Energy, subject to Indian law and regulations.

The user would be responsible for all the capital and operating expenditure for the project from pre-project and throughout its "entire life-cycle including reinstating the assets in case of any damage and decommissioning". The project would be constructed by the user under the supervision and control of NPCIL, and transferred to NPCIL for operation on completion of construction.

The announcement of the Request for Proposals comes after Minister of State Jitendra Singh set out the government's vision for BSRs as part of its nuclear power programme in a written answer to the Lok Sabha on 4 December.

"The standard 220 MW Pressurised Heavy Water Reactor (PHWR), which has a proven safety and performance record, is being upgraded to reduce the land requirement and make it deployable close to the industries for use as a captive power plant. These reactors, termed as Bharat Small Reactors (BSR) are planned to address the decarbonisation needs of industries like steel, aluminium, metals etc. Setting up of 220 MW Bharat Small Reactors is envisaged within the existing legal framework, broadly envisaging provision of land, cooling water and capital by the private entity, with the design, quality assurance and operation & maintenance by Nuclear Power Corporation of India Limited (NPCIL), based
on agreed business models," he said.

"BARC is developing Small Modular Reactor for repurposing of retiring coal-based power plants and catering to power requirements at remote locations in the country."

BARC is the Bhabha Atomic Research Centre, India's multi-disciplinary national nuclear research centre. Users have until 31 March to submit proposals to the NPCIL.