Shares of state-run NTPC Ltd were trading in the red and 1% lower on Tuesday 11 February despite the company announced that the country’s biggest power generator, is in early talks with several foreign technology companies to enter the nuclear energy market as India steps up its decarbonization efforts.

Rosatom Corp., Korea Hydro & Nuclear Power, Electricite de France SA, and US firms GE Vernova Inc. and Holtec International Corp. are among the companies with which NTPC is in talks about technology cooperation, according to an executive familiar with the talks who asked not to be named because the plans are not yet public. According to him, the company plans to use both small and large modular reactors to boost its atomic energy capacity by 10 gigawatts by 2033.

According to the CEO, it can take many months before the deal is finalised.

Holtec said in an email that it is in the “early stages of discussions with NTPC” and will export at least 200 SMRs to India by 2047. EDF also said that it is in talks with the firm on nuclear technologies, including SMR.

By providing more than $2 billion in public financing for research and relaxing supplier criteria, the administration of Prime Minister Narendra Modi is seeking to reignite interest in India’s nuclear power potential.

Atomic reactors are becoming more and more popular worldwide because they can supply vast volumes of continuous, low-carbon power at a time when nations are striving to meet net-zero emissions targets. In India, the business has lain dormant for many years due to a combination of safety concerns and laws that hold equipment users and suppliers responsible for damages in the case of a tragedy.

Earlier this month, the government declared that it will amend the liability statute, which was originally intended to give justice to those impacted by nuclear accidents. This might make it easier for foreign sellers to sell in India.

NTPC has 77.4 gigawatts of capacity, or around 17% of the country’s total, when combined with its subsidiaries and joint ventures. On its website, it states that fossil fuels power around 90% of that.

The company has joined up with the state monopoly Nuclear Power Corp. of India Ltd. to build a 2.8-gigawatt nuclear power project at Mahi Banswara in the state of Rajasthan. According to the official, the business plans to commence civil work at the location in the first quarter of April.

Navigate NTPC Ltd Like a Pro. Ask the Analyst.

At 1:09 pm, the shares of NTPC were trading 1.10% lower at Rs 307.10 on NSE.

Tired of missing hot stocks? Unicorn Signals provides powerful tools like stock scans and more help you make informed trading decisions.
Download now and take control of your portfolio!