Nuclear Power Corporation Of India Limited (NPCIL)

Policy Update
Sivapriya CB

Background

The Nuclear Power Corporation of India Limited (NPCIL) was established in 1987 as a Public Limited Company, which is now a Public Sector Enterprise under the control of the Department of Atomic Energy (DAE). The primary purpose of NPCIL was to generate nuclear power to meet the country’s increasing electricity needs and to commercialize the nuclear power technology developed in India.  The mission of the company is ‘to develop nuclear power technology and produce nuclear energy as a safe, environmentally benign and economically viable source of electrical energy to meet the increasing electricity needs of the country.’

Objectives

1. To maximise the power generation and profitability from nuclear power stations with the motto ‘safety first and production next.’
2. To increase nuclear power generation capacity in the country, with the available resources in a safe, economical and rapid manner, to meet the growing energy demands of the country.
3. To continue and strengthen the environmental protection measures relating to nuclear power generation and CSR activities for inclusive growth.
4. To modernise technological innovation and share those skills and expertise at a national and international level.

Functioning

The activities of NPCIL are governed by the Atomic Energy Regulatory Board (AERB). AERB regulates licensing and approvals for operations, sets safety standards, conducts reviews, inspections, and assessments, and oversees waste management. In addition to AERB, the Department of Atomic Energy (DAE) also holds significant regulatory authority over NPCIL’s activities – it determines tariffs, issues policies and directives for operations, and maintains administrative control over its functions. NPCIL’s functions include the complete lifecycle of a nuclear power plant. This includes:

1. Siting, design, construction, and commissioning: NPCIL manages all pre-project and construction activities, which include identifying suitable locations and designing nuclear power plants. It also involves building new nuclear reactors.
2. Operation and maintenance: With the motto of “safety first and production next”, electricity is generated at the nuclear plants with routine plant maintenance. This includes managing old reactors and performing extension activities to ensure safe long-term performance. At present, NPCIL has 23 operating nuclear power reactors with a total installed capacity of 8080 MW and a 10 MW wind farm.
3. Technology development: The company also focuses on achieving self-reliance by developing nuclear technology and fostering indigenous manufacturing of critical components.
4. Financial functioning: Primary revenue generation comes from the sale of electrical energy, mainly to State Electricity Boards, based on tariffs given by the DAE. The activities of NPCIL are funded through a mix of debt and equity, which includes term loans and bonds.

Apart from this, NPCIL also performs welfare activities for the neighbouring population as a part of its CSR.

Performance

1. Financial Performance: NPCIL has been consistently growing over the years. It has maintained its “AAA” credit rating, which implies the highest safety for its bonds. There was a significant increase in the revenue from operations from Rs. 12367 crores in FY 2019-20 to Rs. 18484 crores in FY 2023-24. This was largely due to the commercialization of the Kakrapar Atomic Power Station (KAPS) in Gujarat. The company’s net worth has grown over 52% in the last five years, from Rs. 39900 crores in FY 2019-20 to Rs. 60821 crores in FY 2023-24.
2. Operational Performance: The operational performance is measured by consistent electricity generation and high plant availability. The installed capacity increased to 8180 MW in FY 2023-24 due to the commercialization of the Kakrapar Atomic Power Station of 700 MW.  The total generation for FY 2023-24 was 47971 Million Units (MUs), which was 4.61% higher than the previous year.  NPCIL has also managed to maintain a high average commercial and availability factors above 80% over the time period of 2019-24.
3. Technological development:
4. NPCIL has established two Hydrogen Generation Units at Tarapur and Rawatbhata to increase the operational experience in clean hydrogen production from nuclear power.
5. It has also developed nuclear-grade Analog Differential Pressure Transmitters indigenously, which will work in severe accident conditions and also reduce import dependence.
6. The company developed a remote tool – a First-of-a-Kind (FOAK) X-Drive System to inspect coolant channels in 700 MW PHWRs (Pressurised Heavy Water Reactor), which will save time and reduce radiation exposure.

Impact

1. Socio-economic impact: Considering the company’s objectives and its use of CSR, NPCIL has contributed to the development of many rural and underdeveloped areas where nuclear plants are located.
   1. NPCIL has spent Rs. 131.79 crores in 2023-24 on CSR activities like education, healthcare, infrastructure, and skill development.
   2. NPCIL has also focused on raising awareness about nuclear energy. They have reached approximately 35.11 lakh people through various public outreach programmes like exhibitions, lectures, and miniature nuclear galleries in science centers across India.
   3. Establishing a nuclear power plant will eventually lead to the development of infrastructure like roads, schools, and hospitals, which will benefit the local population.  

2. Environmental impact: NPCIL aims to provide clean and sustainable energy. Following this, the company has made commendable strides in this front.
3. NPCIL generates carbon-free electricity that is available all day, unlike irregular renewable sources. This has become very important for meeting the goal of achieving net-zero emissions by 2070. As of April 2025, nuclear power in India has avoided around 798 million tonnes of CO2 equivalent GHG emissions.
4. NPCIL also runs a voluntary Environment Stewardship Programme (ESP), which focuses on biodiversity and habitat conservation around its Exclusion Zones (EZs). The programme has particularly focused on avifauna and has published five coffee table books, addressing topics of birds, butterflies, flowers, and biodiversity found around the nuclear power plants.

Challenges

1. Project delays and execution:
   1. Several ongoing projects are experiencing time and cost overruns. There are long delays in interest payments on capital, which make a plant economically unviable.
   2. There are numerous institutional struggles to acquire land for new sites and manage the Rehabilitation and Resettlement (R&R) of affected populations.
2.  Financial challenges:
   1. There is a high initial cost because setting up a nuclear plant requires massive primary investments, and it takes years for the plant to become operational.
   2. Securing adequate and timely funding has led to project delays, and to meet its capital expenditure needs, NPCIL has sought waivers on dividend payments to the government in the past. 
3. Institutional hurdles:
4. Gaining public acceptance has been a difficult and critical issue because there is a lot of local opposition that cites concerns about radiation, safety, and environmental impacts.
5. There are often work delays due to evolving regulatory frameworks and requirements, which will need to be redesigned and reworked.

Way forward

In the long term, NPCIL is planning a major strategic expansion by constructing 700 MW Pressurised Heavy Water Reactors (PHWRs) in ‘fleet mode’ to reduce costs and timelines. NPCIL is planning to seek approval for 10 more such units, while there are already 10 units under development. This will be aided by large-capacity Light Water Reactors (LWRs) through international collaboration and exploring indigenously designed Small Modular Reactors (SMRs). These expansion activities are part of India’s broader 100GW nuclear mission.

Additionally, by meeting the financial and institutional hurdles through better administration and easing of regulatory frameworks, the determined targets can be achieved. Measures to make land acquisition easier and expand the CSR activities will increase public confidence and avoid major delays. Overall, NPCIL aims to meet India’s long-term energy security and climate goals and is on the right trajectory.

References

1. Akella, S. (2023, July 3). India’s first domestically developed nuclear reactor begins operations. Power Technology. https://www.power-technology.com/news/npcil-india-nuclear-reactor/
2. Home:Nuclear Power Corporation of India Limited. (n.d.). Www.npcil.nic.in. https://www.npcil.nic.in/content/328_1_AboutNPCIL.aspx
3. Mohan, A. (2023, July 26). The Future of Nuclear Energy in India. Orfonline.org; OBSERVER RESEARCH FOUNDATION ( ORF ). https://www.orfonline.org/research/the-future-of-nuclear-energy-in-india
4. NPCIL Annual Report for FY 2023-24. (n.d.). Scribd. Retrieved September 21, 2025, from https://www.scribd.com/document/849070242/Annual-Report-2023-2024-26082024-01
5. Power Generation – Public Enterprises Survey 2015-16. (n.d.). https://dpe.gov.in/sites/default/files/14_Power%20Generation.pdf
6. Samant, S. (2025, May 23). Eye on nuclear energy mission, NPCIL looks to speed up capacity addition. The Economic Times; Economic Times. https://economictimes.indiatimes.com/industry/energy/power/eye-on-nuclear-energy-mission-npcil-looks-to-speed-up-capacity-addition/articleshow/121369231.cms?from=mdr

About: Sivapriya is a research intern at IMPRI. She is pursuing a BA(Hons) Economics degree from Miranda House College, University of Delhi.

Acknowledgement: The author sincerely thanks Aasthaba Jadeja and other IMPRI fellows for their valuable contribution. 

Disclaimer: All views expressed in the article belong to the author and not necessarily to the organisation.

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