India’s Nuclear Energy Push: 4 Stocks to Watch
India’s Nuclear Power Ambitions: A Growing Market
Nuclear energy is set to play a bigger role in India’s energy mix. With ambitious plans to increase its nuclear capacity significantly in the coming decades, the country is poised to become a major player in the global nuclear power market.
Government Backing the Push
The Indian government has outlined ambitious targets: 20 GW of nuclear capacity by 2032 and a whopping 100 GW by 2047. This is part of India’s commitment to achieve net-zero carbon emissions by 2070.
Finance Minister Nirmala Sitharaman proposed a Rs 20,000 crore nuclear energy mission in the 2025 budget, aiming to develop at least five small, indigenously built nuclear reactors by 2033.
Opening Doors for Private Players
In a significant move, the government is planning to amend existing laws to allow private players to enter the nuclear energy sector. These changes include amendments to the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010.
This shift is expected to attract both domestic and foreign companies, ushering in a new era of competition and innovation in India’s nuclear energy sector.
Companies Set to Benefit
While several power companies stand to gain from these regulatory changes, this article focuses on those currently involved in nuclear power production.
Bharat Heavy Electricals (BHEL)
BHEL is a major equipment manufacturer for nuclear plants. Recent partnerships with BARC and EDF highlight its commitment to the sector. BHEL has secured significant orders for nuclear projects, demonstrating its strong position in the market.
Hindustan Construction Company (HCC)
HCC has a substantial track record in nuclear power construction, having contributed 60% to India’s installed nuclear capacity.
Larsen & Toubro (L&T)
L&T, a leading engineering conglomerate, has also been actively involved in nuclear power projects, recently supplying Steam Generators for the Kaiga Atomic Power Station.
MTAR Technologies
MTAR Technologies focuses on civil nuclear power and has secured orders from NPCIL.
Looking Ahead: A Nuclear Powerhouse
With India’s commitment to nuclear energy and its new policies encouraging private sector involvement, the sector is poised for significant growth. Investors should keep a close eye on these companies as they are well-positioned to capitalize on this emerging opportunity.
Other companies like Reliance Industries, Adani Power, and Vedanta have also expressed interest in entering the nuclear energy field, further intensifying competition and driving growth in the sector.
NTPC, India’s largest power generator, is reportedly planning to invest a massive $62 billion (around Rs 5.30 lakh crore) to develop 30 GW of nuclear power over the next two or three decades.
This wave of investment and new players entering the market signifies that India is serious about its nuclear power ambitions and that the sector is ripe for growth.
