- 21 Feb 2024
- ICICI Securities
INDIA SET TO OPEN ITS NUCLEAR ENERGY SECTOR TO PRIVATE INVESTMENT
News: India is set to open its nuclear energy sector to private investment, aiming to inject around $26 billion to enhance its clean energy output. The move is part of India's broader strategy to ensure that by 2030, half of its electric generation capacity comes from non-fossil fuel sources. The government is in talks with at least five private firms including Reliance Industries, Tata Power, Adani Power and Vedanta Ltd to invest around 440 billion rupees ($5.30 billion) each. With the investment, the government aims to expand India's nuclear power generation capacity by 11,000 megawatts by 2040.
Views: If the investments picks up in the nuclear segment then the same will be highly beneficial for capital goods companies under coverage. BHEL and L&T will get business opportunities on the EPC side of the business whereas product companies like KSB Ltd will also be a big beneficiary.
Impact: Positive