Vedanta, Adani, Tata Power, RIL: Why India's power giants are turning to nuclear

Vedanta, Adani, Tata Power and Reliance are positioning for India's nuclear push. Their interest reflects rising power demand, policy changes and the search for firm clean energy.

In Short

• India's private power firms now eye nuclear energy after thermal and renewables
• SHANTI Act 2025 enables private nuclear investments with new liability rules
• Vedanta, Adani, Tata Power, Reliance actively exploring nuclear and SMR projects

India's private power sector appears to be entering a new phase of evolution. After building large thermal power portfolios and subsequently investing billions in renewable energy, several leading power producers are now turning their attention towards nuclear energy, signalling what could become the next frontier of India's long-term energy transition.

The shift comes as the country's electricity demand continues to rise at an unprecedented pace. India is now projecting peak power demand to reach around 300 GW next year, with the Ministry of Power pointing to factors including the expansion of data centres, artificial intelligence and electric vehicles. The revised 20th Electric Power Survey projections had earlier put peak demand at 296 GW for 2026-27.

While renewable energy will remain central to India's clean energy ambitions, industry experts believe the country will increasingly require dependable baseload power to complement intermittent sources such as solar and wind.

"India's renewable expansion does not obviate the need for firm, round-the-clock low-carbon electricity," said Manoranjan Sharma, Chief Economist, Infomerics Ratings.

As of June 2026, India had 162.15 GW of solar and 57.44 GW of wind capacity, compared with only 8.78 GW of nuclear, Sharma said. Solar output falls sharply after sunset and wind varies with weather, creating requirements for storage, transmission, flexible generation and overbuilding.

"Nuclear provides high-capacity-factor generation; NPCIL reported a 91% capacity factor in April-June 2026," he said. However, Sharma added that recent modelling finds solar, storage, demand response and transmission can sometimes provide lower-cost decarbonisation than large nuclear additions.

THE POLICY SHIFT OPENS THE DOOR

The policy environment is also evolving. The SHANTI Act, 2025, which enables greater private participation in nuclear power generation and provides a framework for civil liability, has created fresh momentum for investments in the sector.

The reforms support India's ambitious target of developing 100 GW of installed nuclear capacity by 2047, opening opportunities for private companies with experience in developing and operating large-scale power assets.

"Policy, not technology, constitutes the foremost challenge," Sharma said.

India's 2025 SHANTI Act opened the nuclear-generation sector to private participation, replacing the effectively restricted earlier framework. Rules for implementing the Act are still being drafted, but companies could potentially enter the market.

India has also set a 100-GW nuclear target for 2047 and launched a Rs 20,000-crore Nuclear Energy Mission focused partly on Small Modular Reactors (SMRs).

"Adani, Tata and Reliance are therefore positioning early, while conventional power businesses face increasing decarbonisation pressure," Sharma said.

India currently has 24 nuclear power plants in commercial operation, with a total capacity of 8,780 MW. Under the government's roadmap, this is expected to rise to about 22 GW by 2031-32, with a further 32 GW envisaged through NPCIL, taking its capacity to around 54 GW by 2047. The remaining 46 GW is expected to come from other public-sector enterprises, state governments, private companies and joint ventures.

The government is also pushing Small Modular Reactors (SMRs) as part of this expansion. The Nuclear Energy Mission aims to develop and operationalise at least five indigenous SMRs by 2033, including the 220 MWe Bharat Small Modular Reactor and the 55 MWe SMR-55.

VEDANTA LOOKS BEYOND THERMAL POWER

Vedanta Power has outlined plans to scale its generation capacity to 20 GW and become India's third-largest power producer. The company believes nuclear energy will play a critical role in its long-term growth trajectory by complementing its thermal business and strengthening India's energy security through dependable, low-carbon baseload generation.

Vedanta Power's nuclear plans are also being viewed in the context of the emerging SMR opportunity. US-based Holtec International is reportedly in talks with the Vedanta Group over potential tie-ups to develop a pipeline of small modular reactor projects in India. Holtec is looking at a potential 15 GW SMR pipeline in the country, with Vedanta and NTPC among the Indian companies it is seeking to work with.

With an operational capacity of 4,180 MW across four thermal power plants, Vedanta Power is India's fifth-largest private-sector thermal power producer. Around 85% of its fuel requirement is secured through long-term coal linkages, providing operational stability and experience in managing large-scale baseload assets.

Vedanta Power's latest June 2026 listing material also said the company has 85% domestic coal security linkages across its operational capacity and plans to scale its capacity to 20 GW, with a long-term ambition to be among the top three private-sector power companies in the country.

ADANI, TATA POWER, RELIANCE JOIN THE NUCLEAR RACE

Several corporate groups have already begun positioning themselves. Adani Group has announced plans to develop up to 10 GW of nuclear capacity by 2035, while Reliance Industries is evaluating investments in conventional nuclear projects and Small Modular Reactors (SMRs). Tata Power, too, has indicated that it is exploring opportunities as the regulatory framework matures.

Adani Power is currently evaluating nuclear technologies and potential sites in Madhya Pradesh, while awaiting further regulatory clarity. Tata Power, meanwhile, is progressing its nuclear plans in collaboration with NPCIL, with land identified across three states and detailed site-specific studies under way for proposed 2x220 MW small modular units.

The private-sector opportunity, however, is still at an early stage. The government said in July 2026 that rules under the SHANTI Act are currently being drafted, after which applications for licences from private parties will be considered.

WHY THERMAL POWER PLAYERS ARE LOOKING AT NUCLEAR

For established thermal power producers, nuclear represents a natural extension of their existing capabilities. Companies with decades of experience in operating baseload generation possess expertise in engineering, project execution, fuel management and grid operations that could prove valuable as private participation expands.

"Thermal-power companies already possess expertise in large-scale generation, project management, grid operations, maintenance, procurement and power-market contracting," Sharma said.

"Nuclear can also provide the firm electricity that coal plants traditionally supplied, but without direct carbon emissions."

NPCIL's fleet achieved a 91% capacity factor in the first quarter of FY27, Sharma said. Companies can also reuse parts of their industrial ecosystem, including land, transmission connections, engineering capabilities and skilled personnel, although nuclear-specific safety, regulation and liability requirements remain fundamentally different from coal.

CAN NUCLEAR ACTUALLY BE A PROFITABLE BUSINESS?

The growing interest from private companies does not necessarily mean that nuclear will automatically become a lucrative business.

"Yes, but profitability is not guaranteed," Sharma said.

"Nuclear energy's strengths are high utilisation, long operating lives and relatively stable fuel costs; the government notes Indian nuclear plants have historically achieved competitive generation cost but upfront capital is an issue."

He pointed to Kudankulam Units 3-4, which have an approved cost of Rs 68,893 crore for 2 GW.

"Design changes, geopolitical disruption, supply problems and contractor stress can reduce returns," Sharma said.

"Private investment therefore depends on predictable regulation, liability rules, financing structures, standardised reactors and long-term power offtake."

THE CHALLENGE OF REACHING 100 GW

India's 100 GW nuclear ambition is substantial. The country has only 8.78 GW today, meaning capacity must rise more than eleven-fold in about 21 years.

"Seventeen reactors totalling 13.1 GW are currently under implementation, but even completing those would leave a very large gap," Sharma said.

The main obstacles, according to him, are financing, construction timelines, technology localisation, fuel availability, regulatory capacity, skilled manpower, land and public acceptance.

"Historical delays demonstrate the risk: projects have been affected by Fukushima-related redesigns, Covid, contractor problems and geopolitical disruptions," he said.

"Reaching 100 GW therefore requires standardised designs, repeatable construction and sustained private-public financing, not merely policy announcements."

Sharma believes the target remains achievable, but only with coordinated action.

"Difficult but doable with synchronised action by all stakeholders," he said.

As policy reforms gather pace, companies with such capabilities are likely to be well placed to participate in India's next phase of power sector growth, where nuclear could emerge alongside coal and renewables as a key pillar of the country's energy mix.

The scale of the opportunity is significant, but so are the challenges. Nuclear projects require large capital commitments, long development timelines and regulatory clearances. With the rules under the SHANTI Act still being finalised, the next phase will be about translating corporate interest and government ambition into projects that are commercially viable and can actually be built.

For now, India's nuclear expansion is creating a new arena for some of the country's biggest power companies, with Vedanta, Adani, Tata Power and Reliance Industries among the groups positioning themselves for what could become a major shift in India's energy mix.

- Ends