Adani Group Eyes Nuclear Power Expansion as India Opens Sector to Private Investment – Obnews

Gautam Adani’s conglomerate is preparing to enter India’s nuclear energy sector, as the country moves to allow greater private participation in an industry long dominated by the state. According to people familiar with the matter, the Adani Group is in discussions with the government of Uttar Pradesh to develop a commercial nuclear power project, positioning the billionaire-led group at the forefront of a newly liberalized segment of India’s energy market.

The proposed plan involves building eight small modular reactors, each with a capacity of 200 megawatts, which would collectively add around 1,600 megawatts of nuclear power to Adani’s growing energy portfolio. The discussions remain at an early stage, with state officials still working to identify a suitable riverside location that can provide the steady water supply required for reactor operations, according to sources cited by Bloomberg News.

This potential move aligns with the Narendra Modi government’s broader push to diversify India’s energy mix and reduce reliance on fossil fuels, particularly as electricity demand surges due to data center growth and the rapid expansion of artificial intelligence driven systems. Earlier this week, India’s parliament approved opening up the nuclear power industry to private firms, a major policy shift aimed at unlocking investment opportunities estimated at $214 billion, after decades of strict regulatory controls.

Under the federal government’s Nuclear Energy Mission announced in the February budget, New Delhi committed 200 billion rupees toward research and development of small modular reactors. These reactors are seen as a more flexible and scalable alternative to traditional large nuclear plants, potentially allowing faster deployment and improved safety oversight. Other major Indian conglomerates, including Tata Group, Reliance Industries, and JSW Group, are also exploring opportunities in the sector, according to reporting by PTI.

The Adani Group’s discussions with Uttar Pradesh are centered on a public private partnership model. Under this structure, the state run Nuclear Power Corporation of India Ltd. would operate the facility on behalf of the conglomerate. The Bhabha Atomic Research Centre is developing the 200 megawatt SMR design that would be used for the project. According to people familiar with the talks, the entire development could take five to six years following government approval, a timeline partly influenced by Adani’s lack of prior experience in nuclear power.

India currently operates about two dozen nuclear reactors across seven locations, contributing roughly 3 percent of total electricity generation. While existing facilities have a combined capacity of 8,780 megawatts, projects already underway are expected to raise that figure to 13,600 megawatts. The government has set an ambitious target of reaching 100 gigawatts of nuclear capacity by 2047. Representatives from the Adani Group, the Uttar Pradesh government, and the Department of Atomic Energy did not respond to requests for comment, according to Bloomberg News.