India’s largest power producer NTPC Ltd is setting its sights firmly on nuclear energy with plans to develop 50GW of nuclear capacity by 2047. The planned expansion represents exactly half of the country’s broader 100GW nuclear objective and marks a defining pivot in the state-run utility’s strategic direction.According to a research note by JM Financial, following a day-long management interaction with NTPC Chairman and Managing Director Gurdeep Singh and Director (Finance) Jaikumar Srinivasan, nuclear power has taken center stage as “one of NTPC’s most important long-term growth options” to guarantee clean, non-intermittent baseload electricity.
JM Financial noted that NTPC is engaging with multiple international technology providers while simultaneously building its in-house technical capabilities. “Nuclear is emerging as one of NTPC’s most important long-term growth options,” it said.To follow cost-plus model
On the commercial front, NTPC indicated that these capital-intensive nuclear developments will operate under cost-plus economics while the ultimate scale shall also depend on states’ willingness to support demand. The cost-plus model is designed to shield the balance sheet from the long gestation periods and substantial upfront expenditure inherent to nuclear energy.
The state-run firm is taking a grounded, pragmatic view on Small Modular Reactors (SMRs). The management explained that while it is actively evaluating SMR technologies, it does not view them as a near-term certainty because the “earlier global enthusiasm around SMRs has not yet translated into widespread commercial deployment,” the brokerage noted.
The NTPC management maintained that as a responsible PSU, it has to fulfill strategic objectives such as nuclear development even if another project theoretically offers a higher Internal Rate of Return (IRR).
Beyond its nuclear push, the power major is mapping expansion across a diverse 37GW pipeline that spans conventional coal, hydroelectricity, and renewable installations. The company also views thermal generation as its core near-term earnings engine, shielded by robust power purchase agreements (PPAs) and regulated returns.
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