5 Stocks Likely to Benefit from India’s ₹20 Lakh Cr Nuclear Energy Mission!

 

5 Stocks Likely to Benefit from India’s ₹20 Lakh Cr Nuclear Energy Mission!

India’s aim of increasing its nuclear power capacity to 100 GW by 2047, which is supported by an estimated investment of Rs. 20 lakh crore and involves the private sector through the SHANTI Act, is providing a number of decades of opportunity for certain engineering, equipment, and power companies.

 

Why Could Nuclear Energy Become a Multi-Decade Investment Theme?

The shift towards nuclear energy might develop into an investment theme spanning several decades since constructing an extra 90 GW of nuclear capacity will require continuous and long-term capital to be directed towards heavy engineering, precision manufacturing, control systems, and the specialised EPC construction abilities possessed by only a small number of listed Indian companies that have the necessary technical record and regulatory approvals.

Most important of all, in contrast to conventional infrastructure investments, nuclear facilities set up a compounding value cycle, producing steady income streams over many decades through ongoing maintenance, replacement of components, handling of fuel, and system modernisation well after the initial commissioning of the plant.

1. Larsen & Toubro (L&T)

Because of its long experience in constructing complex nuclear infrastructure, Larsen & Toubro is one of the main beneficiaries of India’s nuclear expansion. The company has provided key equipment, such as steam generators, for projects including the Kakrapar Atomic Power Station and it still submits bids for reactor construction packages with NPCIL and joint ventures like Anushakti Vidyut Nigam.

The Heavy Engineering business unit produces reactor-grade forgings, pressure vessels, and other specialised equipment needed for nuclear power plants. Since India aims to achieve 100 GW of nuclear capacity by 2047, the engineering abilities, manufacturing strength and proven track record in carrying out projects mean that L&T is in a good position to obtain a bigger portion of the forthcoming orders for reactors and the associated equipment.

2. Bharat Heavy Electricals (BHEL)

Bharat Heavy Electricals is one of the main beneficiaries of India’s nuclear expansion since it is the nation’s sole domestic producer of nuclear steam turbines and supplies key equipment used in nuclear power plants. The company has provided equipment at all three stages of India’s nuclear programme and thus plays an important role in the country’s nuclear supply chain. 

With the government aiming to achieve 100 GW of nuclear capacity by 2047, BHEL is likely to gain from the increasing demand for turbines, heat exchangers, steam generators, and other heavy electrical equipment needed for the new reactor projects. The company’s many years of experience in manufacturing, support from the government, and its existing relationship with NPCIL will enable it to obtain future orders for nuclear equipment.

3. MTAR Technologies

MTAR Technologies is one of the very few companies that are listed and which have direct involvement in India’s nuclear power programme through the provision of high-precision components for use in nuclear reactors. The company produces reactor internals, fuel machining heads, coolant channel assemblies, and other vital equipment, as well as keeping a long-standing relationship with the Nuclear Power Corporation of India (NPCIL).

Since India is speeding up its expansion of nuclear capacity, MTAR is in a good position to take advantage of the increasing demand for specialised reactor components. The company has already obtained confirmed nuclear orders amounting to Rs. 504 crore for the Kaiga 5 and 6 reactor projects, the deliveries for which will go as far as February 2030. The company’s expertise in precision engineering together with its established position in the nuclear industry give a good indication of future order opportunities.

 

4. NTPC

NTPC is the largest company in India when it comes to power generation and will therefore have a key role in the nation’s nuclear expansion programme. Since the government has decided to permit greater private involvement in the sector, NTPC has raised its long-term target for nuclear capacity to 30 GW and is expanding its position through its joint venture with the Nuclear Power Corporation of India (NPCIL), Anushakti Vidyut Nigam Limited.

The company is currently taking part in the Rs. 28,000 crore Mahi Banswara Nuclear Power Project, in which its joint venture has submitted one of India’s largest nuclear EPC tenders. With an increasing number of nuclear projects being announced in order to meet the government’s objective of reaching 100 GW by 2047, NTPC is likely to gain from new power generation assets and from long-term regulated returns.

5. Power Mech Projects

Because of its expertise in carrying out large-scale engineering, procurement, and construction (EPC) projects in the power industry, Power Mech Projects is well placed to gain from India’s nuclear expansion. The company has a great deal of experience in the areas of erection, testing, commissioning and carrying out the balance-of-plant work for thermal and hydroelectric power projects, skills which are also needed when constructing nuclear power plants.

With India speeding up its programme for the development of new nuclear reactors, demand for experienced EPC contractors is likely to go up. The fact that Power Mech has had long-term relationships with companies like BHEL and several state utilities, together with its established record of carrying out complex power infrastructure projects, means that it is in a position to take part in future nuclear construction projects.