Adani eyes nuclear energy projects as India introduces SHANTI Bill
What's the story
The Adani Group, led by billionaire Gautam Adani, is in talks with the Uttar Pradesh government to set up a commercial nuclear energy project. The proposed plan includes the construction of eight 200-megawatt (MW) small modular reactors (SMRs). This initiative would add around 1,600MW of nuclear capacity to the group's low-carbon energy portfolio and help India diversify its energy mix.
Strategic alignment
Adani's nuclear energy venture aligns with India's sustainability goals
Adani's foray into nuclear energy comes as the Indian government, led by Prime Minister Narendra Modi, pushes to reduce reliance on fossil fuels. This is especially important as data-center expansion and AI-powered systems are driving a surge in electricity demand. The move also aligns with India's goal of achieving 100GW of nuclear power output by 2047.
Project execution
Project to be executed via public-private partnership
The proposed nuclear energy project will be executed through a public-private partnership with the state-run Nuclear Power Corporation of India Ltd. (NPCIL). NPCIL will operate the plant on behalf of the Adani Group. The Bhabha Atomic Research Centre is currently designing and developing these 200MW SMRs for installation in Uttar Pradesh, which could take five to six years after government approval.
Legislative change
SHANTI Bill paves way for private firms in nuclear sector
The Indian Parliament has also passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, allowing private companies to enter the atomic energy sector. The legislation seeks to grant licenses to private firms for operating nuclear plants and remove the contentious liability clause for fuel and technology suppliers. It aims to boost investment in India's nuclear power capacity in the coming years.