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India.com
4 hours ago
- Business
- India.com
Mukesh Ambani, Gautam Adani, Tata Group compete to finance Modi govt's mega project in..., its related to...
(File) Mukesh Ambani-led Reliance Industries, Gautam Adani's Adani Group, and the Tata Group are among some of the biggest names from the corporate world who are bidding for a central government tender to set up Bharat Small Reactors (BSRs), which aims to decarbonize high-emission industries such as steel and aluminum using nuclear power. The project is expected to attract Rs 35,000 crore in investments from the private sector, with the tender attracting bids from major players including Reliance Industries, Adani Group, Tata Group, Hindalco, the mining arm of Aditya Birla Group, Vedanta and JSW Group, Moneycontrol reported, citing government officials. As per officials, the government plans to allot the projects on a twin-unit basis, which means each unit will have two BSRs of 220 MW, the report said. Each twin unit is estimated to cost around Rs 6,000-7,000 crore, it added. 'NPCIL is planning a total of either 12 such reactors (six twin units) or 14 reactors (seven twin units). The total investments by the selected companies could range from Rs 35,000 crore to Rs 50,000 crore,' the report quoted an official as saying. What are Bharat Small Reactors or BSRs? Bharat Small Reactors (BSRs) are indigenously-developed compact 220 MW pressurized heavy water reactors (PHWRs), aimed at providing a sustainable, low-carbon energy solution for heavy industries like steel, aluminum, and metals, which can act as captive power plants. There is a growing global demand for small nuclear reactors due to their flexibility, scalability, and lower costs compared to conventional large setups. The Narendra Modi government plans to boost India's nuclear power capacity from 8.7 GW to 22.48 GW by 2031-32 and to 100 GW by 2047, and the deployment of BSRs is a major step towards the fulfilment of that ambitious project. Earlier this year, the government announced the National Nuclear Energy Mission during the Union Budget. An initial outlay of Rs 20,000 crore has been set aside for research and development of small reactors. How successful bidder will be incentivized? According to the report, the company which secures the project will have to finance it in entirety, which includes capital and operational expenditure. It will also be required to to reimburse NPCIL for all costs incurred across the lifecycle, from pre-project assessments to decommissioning. In return, the private firm will be granted assured long-term access to all the electricity generated through the nuclear reactors for captive use, even as the BSR units are required to built under the supervision of the NPCIL, and the state-owned company will also retain the operational control of the asset. When is the tender deadline? The tender, being executed by the state-owned Nuclear Power Corporation of India Ltd (NPCIL), was first floated in January this year and deadline was set for June 30, 2025. However, the deadline was extended till September 30 upon the request of stakeholders who had sought more details about the project. Eligible bidders must have a minimum net worth of Rs 3,000 crore and an annual power requirement of at least 2,500 million units, according to the tender document.
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Business Standard
7 hours ago
- Business
- Business Standard
Quartz exports decline 34% in FY25 as China slashes import volumes
India's quartz exports declined sharply in FY25, falling to 916 kilo tonnes (kt) from 1,378 kt in FY24—a 34 per cent drop after three consecutive years of strong growth, according to data tabled in Parliament by the Ministry of Mines on Wednesday. The steep fall was primarily driven by a collapse in exports to China, which had emerged as India's top buyer in FY24 with 626 kt. In FY25, shipments to China plunged 78 per cent to 137 kt. Quartz exports had risen steadily from 693 kt in FY21 to 1,378 kt in FY24, marking a 99 per cent increase. The decline comes even as the government has been actively promoting mineral exports under initiatives such as the Districts as Export Hubs programme and the Export Promotion Mission announced in the Union Budget 2025–26. Quartz was reclassified as a major mineral in February 2025, shifting its regulation from state to central oversight. Despite the export slump, India remains largely self-sufficient in meeting domestic demand, with imports of only 4 kt in FY25. Quartz production in key states such as Rajasthan has risen steadily, touching 25.3 lakh tonnes in FY25.
The Hindu
11 hours ago
- Politics
- The Hindu
Kerala government constitutes 7-member panel for preparing ‘State Water Security Plan'
The Kerala government is moving ahead with plans to create a 'State Water Security Plan', a requirement under the Jal Jeevan Mission (JJM), the Centrally-assisted functional household tap connectivity (FHTC) scheme for rural areas. Given the multi-dimensional nature of water security, the government has constituted a committee with members from the Local Self-Governments, Irrigation, Ground Water, Revenue and Forest departments; and the Kerala Water Authority (KWA), and the Kerala Rural Water Supply and Sanitation Agency (Jalanidhi). The character of the water security plan will be decided through deliberations, Jeevan Babu, managing director, KWA and mission director, JJM, said. KWA is the main implementation agency of JJM in Kerala. Deliberations will have to be held because of the involvement of multiple stakeholder agencies in surface and ground water resources and the diverse demands on these resources ranging from drinking water to irrigation and power generation. The panel has been formed on a recommendation made by the State Water and Sanitation Mission (SWSM), a committee chaired by the Chief Secretary which was constituted in 2020 to oversee the implementation of JJM. While Kerala is not a water-scarce State, it has been struggling to keep up with other States in the implementation of JJM. The Union Budget 2025-26 announcement extending the scheme till 2028 has brought relief to the State. With implementation at 54.66%, Kerala is at the bottom of the national-level list, indicate Union Jal Shakti Ministry data. Three blocks, 73 panchayats and 95 panchayats in Kerala have been certified as having 'Har Ghar Jal' status. Among the districts, Wayanad (37.90%), Idukki (36.93%) and Kasaragod (32.62%) are lagging behind in the implementation.
Mint
16 hours ago
- Business
- Mint
IDBI Bank to be first off disinvestment block, followed by stake sales in other PSUs in Q4
New Delhi: The government is likely to defer its broader disinvestment plans to the fourth quarter of FY26 as it focuses on completing the strategic sale of IDBI Bank by the end of the third quarter, two people aware of the matter said. The move is aimed at avoiding market crowding and ensuring sufficient investor appetite. The IDBI Bank transaction is expected to fetch about ₹50,000 crore for the central government and Life Insurance Corporation of India, which together hold over 94% in the bank, the people said. The key stakeholders plan to divest a 60.72% stake in the lender. There has been no major asset monetisation or stake sale in the first quarter and the second quarter could also remain subdued, the first person said. "While the stake sale in IDBI Bank is likely to fetch about ₹50,000 crore, another ₹10,000-15,000 crore could come from offers for sale of equity in other listed public sector undertakings," the first person added. The Centre is currently in the final stages of divestment in IDBI Bank. An inter-ministerial group has approved the share purchase agreement detailing the terms of the sale, paving the way for the government to invite financial bids, the second person said, asking not to be identified. "The proposal will be discussed by the core group of secretaries on disinvestment for clearance, after which financial bids are likely to be invited in September-October, following which financial bids will be invited," the second person added. The potential suitors for the IDBI Bank stake include Fairfax India Holdings (promoter of CSB Bank), Emirates NBD, and Kotak Mahindra Bank. Transaction timeline Both people aware of the stake sale plan said the timeline for the transaction remains broadly on track. The IDBI Bank privatisation plan was first announced in the Union Budget for FY22 but had been delayed multiple times during the past three years. IDBI Bank shares climbed 2% to ₹97.10 on the BSE as of 10:33 AM on Wednesday, extending this year's gains to about 27%. The lender's market capitalisation exceeds ₹1 trillion. The Centre stopped setting separate disinvestment targets in FY24. However, the budget estimate for miscellaneous capital receipts (MCR), which includes proceeds from equity sales and public asset management, is pegged at ₹47,000 crore for FY26. For FY25, the receipts were revised to ₹33,000 crore from ₹50,000 crore pegged in the budget estimate. Mint reported earlier that there were as many as eight strategic disinvestment plans at various stages, including stake sales in BEML Ltd, Shipping Corp. of India Ltd, HLL Lifecare Ltd, Projects & Development India Ltd, and Indian Medicines Pharmaceutical Corp. Ltd. Little progress has been made on divesting stake in most of these companies and they could be taken up in the coming quarters, depending on market conditions. 'Some of the planned divestments will be taken up once the IDBI Bank sale is completed. That said, the Centre is confident of exceeding the ₹47,000 crore MCR target for FY26, buoyed by the IDBI transaction and other stake sales," the first person said. "Divestment proceeds in FY26 are expected to reach a multi-year high." The Centre's disinvestment receipts touched a record of over ₹1 trillion crore in FY18, largely due to the stake sale in Hindustan Petroleum Corporation Ltd and the listing of central public sector enterprises. The government sold its entire 51.1% stake in HPCL to Oil and Natural Gas Corporation for ₹36,915 crore. Disinvestment proceeds stood at ₹84,972 crore in FY19 and ₹50,300 crore in FY20, according to data from the Department of Investment and Public Asset Management. A finance ministry spokesperson did not respond to an emailed query. Spokespersons for Fairfax India Holdings, Emirates NBD, and Kotak Mahindra Bank did not respond to requests for comment.
The Hindu
19 hours ago
- Business
- The Hindu
Redeeming India's nuclear power promise
The Union Budget for 2025-26 marked a significant shift in India's nuclear energy plan by announcing an ambitious target of 100 GW of power generating capacity by 2047, up from the present 8.18 GW. This positions nuclear power as a major pillar in India's energy mix, given the two goals of emerging as a developed country (Viksit Bharat) by 2047, and achieving 'net zero emissions' by 2070. Simultaneously, the Nuclear Energy Mission announced a special allocation of ₹20,000 crore to develop 'at least five indigenously designed and operational Small Modular Reactors (SMR) by 2033.' Such ambitious plans will need the involvement of private players, both domestic and foreign, into a hitherto government sector, which will require significant changes to the legislative, financial and regulatory framework. The government has indicated that some changes in the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act (CLNDA), 2010 are in the offing. However, such reforms also need a change in mind set. India's nuclear journey India had an early start, setting up Asia's first nuclear research reactor, Apsara, in 1956, and beginning work on Asia's first nuclear power reactors at Tarapore in 1963. As early as 1954, Dr. Homi Bhabha, the architect of India's nuclear programme, presented a target of generating 8 GW of nuclear power by 1980. However, the journey has been long and difficult. Following India's war with China in 1962; its entry into the nuclear club in 1964; the decision to stay out of the nuclear Non-Proliferation Treaty (NPT) in 1968; and the Peaceful Nuclear Explosion (PNE) test in 1974, India was excluded from the emerging nuclear order. International cooperation ceased and export controls slowed down the nuclear power programme. This led to the nuclear power target being pushed to 10 GW by 2000. Moreover, India took time to successfully indigenise the design of the 220 MW Pressurised Heavy Water Reactor (PHWR), employed in Rajasthan. Its advantage was that it used natural uranium as fuel unlike the design of the Tarapur Light Water Reactor (LWR), which used Low Enriched Uranium (LEU) that India obtained from the U.S., and later, from France. Subsequently, the same 220 MW PHWR units were established at Narora, Kaiga, Kakrapar etc., and the design was upgraded to 540 MW (set up at Tarapur in 2005-06) and to 700 MW with two units becoming operational at Kakrapar in 2024. After the nuclear tests in 1998, followed by intense negotiations with the U.S. and other strategic partners, India finally gained acceptance as a responsible nuclear power. It also got a special waiver from the Nuclear Suppliers Group (NSG). India was thus ready to resume exchanges with other nuclear powers to import both nuclear fuel and more advanced reactors to expand its nuclear energy programme. However, the CLNDA created new difficulties that have prevented such anticipated external participation. In fact, Russia is the only country that is partnering with us at Kudankulum with six VVER-1000 power reactors because the government-to-government agreement, signed in 1988, predated the CLNDA. Towards green development To become a developed country by 2047, India's annual per capita income needs to grow from the current $2,800 to $22,000, and correspondingly, the GDP needs to grow from the current $4 trillion to over $35 trillion. There is a well-established correlation between economic growth and energy consumption. In 2022, India's per capita electricity consumption stood at 1,208 kWh, compared to 4,600 kWh for China, and over 12,500 kWh for the U.S. India's electricity generation capacity, currently at 480 GW (divided almost equally between fossil fuels and renewables), will have to grow five-fold, accounting for growth in population and urbanisation. However, solar, wind, and small hydro projects provide only intermittent power. That is why out of 2030 terrawatt-hours (TWh) — the total electricity generated in 2024 — renewable energy, with half the generation capacity, accounted for only 240 TWh. Coal fired thermal plants accounted for 75% of energy generation. The climate change commitments announced by Prime Minister Narendra Modi in 2021 at Glasgow COP26 of 'net zero emissions by 2070, raising non-fossil energy generation capacity to 500 GW by 2030 while meeting 50% of the energy demand through renewables, and achieving a carbon intensity reduction of 45% over 2005 levels by 2030' means that India will not be able to rely on fossil fuels for its growth. Renewable energy is (including solar, hydro, wind, and biomass) is estimated to provide 20% of the demand and up to 25% with investments in battery and pumped storage. Therefore, the obvious candidate to fuel India's energy growth is nuclear power. There is a renewed interest globally in nuclear power. This reflected in the Dubai 2023 COP28 'Declaration to Triple Nuclear Energy', acknowledging nuclear power as a critical input in reducing reliance on fossil fuels, enhancing energy security, and a move towards a low carbon future. In June, the International Atomic Energy Agency (IAEA) and the World Bank agreed to work together to support nuclear energy in developing countries, marking a significant policy shift. World Bank President Ajay Banga pointed out, 'nuclear (energy) delivers base load power, which is essential to building modern economies.' Creating an enabling environment The government is looking at three routes. One is to standardise the 220 MW PHWR design and apply it to Bharat Small Modular Reactors, which would significantly reduce costs and commissioning time. This could replace captive thermal power plants that today account for over 100 GW, and which will be replaced over the next two decades. The second track is to scale up the Nuclear Power Corporation of India Limited (NPCIL) plans for the 700 MW PHWR by facilitating land acquisition, streamlining licensing, and strengthening indigenous supply chains. The third track is to accelerate negotiations with partners in France and U.S. that have been moving at a glacial pace for the last 15 years. Under the Atomic Energy Act, nuclear power is a sector reserved by the government. The NPCIL is a government owned company that builds, owns, and operates the PHWRs, the first two Tarapur LWRs, and the Russian designed VVERs. Nuclear power financing is qualitatively different because of the higher upfront capital costs, lower operating costs, a lifecycle of 50-60 years, and costs associated with decommissioning as well as managing radioactive waste. The indigenised PHWR model has a capital cost of $2 million/MW while the equivalent cost for a coal fired thermal unit is just under a million. Given NPCIL's annual budget of $1.2 billion, the government has realised that to achieve the target of 100 GW, private sector companies will have to be brought into the sector, necessitating a comprehensive set of amendments to the Atomic Energy Act. Questions of majority/minority ownership; whether the nuclear operator will be exclusively NPCIL; who has responsibility and control over the nuclear island part of the plant; and concerns over assured fuel supply and waste management responsibility will need to be discussed with potential stakeholders that include major players like Tatas, Adani, Ambani, Vedanta etc. All these will require amendments to the 1962 Act. A set of comprehensive amendments will also be needed for the 2010 CLNDA especially with regards to its liability clause which affects not just the 'operator' but also the 'supplier' of nuclear power. A third area is commercial disputes relating to tariffs. Nuclear electricity tariff for NPCIL is notified under the Atomic Energy Act. Generally, commercial disputes fall under the Electricity Act and are settled by the Central Electricity Regulatory Commission (CERC) but a recent dispute between NPCIL and Gujarat Urja Vikas Nigam has led to conflicting views by the CERC and the Appellate Tribunal. The case is now under consideration before the Supreme Court. With the entry of the private sector into the field, should the tariff setting come into the 'levelised cost of energy' as applicable to thermal, solar, wind and hydro will depend on how the question of ownership and control are determined. While India has had an impeccable nuclear safety record, the certification and safety oversight is the responsibility of the Atomic Energy Regulatory Board (AERB) that is 'autonomous' but not a legal entity and is subordinate to the Department of Atomic Energy. In 2011, a draft Bill was circulated to establish AERB as an independent regulator, but the Bill lapsed. With the entry of the private sector, the need for an independent regulator becomes paramount. In addition, a raft of financial incentives will need to be introduced. While nuclear energy is a low-carbon energy source, it is not classified as 'renewable', like solar or wind. Revising this classification would make nuclear power projects eligible for tax incentives and specially designed 'green financing' instruments. Long term power-purchase-agreements and provision for viability-gap-funding are other incentives. The sector also needs to be opened up to foreign direct investments, perhaps up to 49%, to ensure Indian ownership and control. In the past, the process of reform has been tentative. In 2011, the NPCIL set up a Joint Venture (JV) with the National Thermal Power Corporation (NTPC), but it languished till it was revived last year. It will now build and operate four units of 700 MW each, scheduled to come up at Mahi Banswara in Rajasthan. Land acquisition has been underway and once completed, the first unit will take seven years. A JV with the Rural Electrification Corporation (REC) is also being envisaged. Both the REC and NTPC are public sector units and these JVs will be wholly government entities. However, if India has to deliver on the promise of 100 GW by 2047, it needs foreign partners and the private sector. While this has been accepted by the government, it now has to move forward with the reforms comprehensively and decisively. Rakesh Sood is a former diplomat and is currently Distinguished Fellow at the Council For Strategic and Defence Research.
