Adani plans nuclear energy foray as India allows private firms

Gautam Adani’s conglomerate is in talks with a northern Indian state to build a commercial nuclear energy project, giving the billionaire a head start in a sector India is opening up to private firms, people aware of the development said.

The Adani Group has been in discussions with officials in the Uttar Pradesh government to build eight 200-megawatt small modular reactors, or SMRs, according to the people, who asked not to be identified as the discussions are private. The plan, part of efforts by

Asia’s second-richest man to broaden his renewable portfolio, would give the conglomerate about 1,600 MW of nuclear capacity.

The state government has yet to identify a riverside site, which is needed to ensure a steady water supply for the reactors, the people said.

Adani’s foray comes as the Narendra Modi–led government pushes to diversify India’s energy mix and reduce its reliance on fossil fuels, even as data-center expansion and AI-powered systems drive a surge in electricity demand. India’s parliament on Thursday approved opening up its nuclear industry to unlock investment opportunities worth $214 billion, after tight regulations stifled the sector for decades.

Representatives of Uttar Pradesh government and the Adani Group did not immediately responded to emails seeking comments.

Under a Nuclear Energy Mission announced in the annual budget speech in February, the federal government said it will spend 200 billion rupees on the research and development of SMRs.

Other Indian conglomerates, including the Tata Group, Reliance Industries Ltd. and the JSW Group, are also jockeying for access to this sector, local news wire PTI reported in October.

Public-private partnership

The ports-to-power group’s discussion with the Uttar Pradesh government is anchored around a public-private partnership. This involves the state-run Nuclear Power Corporation of India Ltd., which will operate the proposed plant on behalf of the conglomerate, the people said.

The state-run Bhabha Atomic Research Centre, is working on the design and development of 200 MW SMRs that the Adani Group plans to install in the state. The entire project is expected to take five to six years to complete after the government approval — a longer timeline largely due to Adani being a new entrant in the sector — the people said.

A spokesperson Department of Atomic Energy that oversees Nuclear Power Corp. and Bhabha Atomic did not immediately respond to an email seeking comments.

The Indian government aims to achieve 100 gigawatt of nuclear power output by 2047.

The country currently has about two dozen nuclear reactors at seven locations, contributing approximately 3% of the total electricity generation, according to a statement in the parliament in July. While these reactors can generate as much as 8,780 MW of nuclear power, plans are underway to boost it to 13,600 MW with projects in various stages of implementation.