The government has granted permission to Anushakti Vidhyut Nigam Ltd. (ASHVINI), a joint venture of Nuclear Power Corporation of India Limited (51%), and NTPC Ltd. (49%), to develop, own, and operate nuclear power facilities in India.

The government approved the transfer of the Mahi Banswara Rajasthan Atomic Power Project, which has a capacity of 4×700 MW and uses indigenous pressurized heavy-water reactor technology, from NPCIL to the joint venture business.

It authorized an exemption for NPCIL to spend more than Rs 500 crore and NTPC to invest more than Rs 5,000 crore in a single joint venture or subsidiary company. 

NTPC envisions a new subsidiary for the nuclear energy sector

"This will enable adequate financing for accelerated nuclear power capacity addition in India," NTPC Ltd. stated. In addition to the Mahi Banswara project, ASHVINI plans to explore other nuclear power projects around the country.

"This will pave the way for pooling of resources from both NTPC and NPCIL, in terms of finances, technology and project expertise for the rapid expansion of nuclear power productivity in the country to meet the targets of net zero by 2070." 

Speaking during the company's 48th annual general meeting, Gurdeep Singh, Chairman and Managing Director of NTPC Ltd, stated that the business is on the verge of starting construction on the 2.8 gigawatt (GW) Mahi Banswara nuclear project in Rajasthan through a joint venture with the Nuclear Power Corporation of India, with an expected investment of Rs 50,000 crore.

"In parallel, we are taking steps to form a separate subsidiary dedicated to the nuclear business going forward," stated the chief marketing officer.

NTPC has already inked a supplemental joint venture agreement with Nuclear Power Corp of India to build the Mahi Banswara project as well as another 1.4 GW nuclear facility in Chutka, Madhya Pradesh. However, NPCIL will now handle the Chutka project on its own, according to the corporation.

The corporation also intends to establish a new subsidiary to pursue nuclear projects and hopes to build nuclear power plants in Tamil Nadu, Karnataka, Jharkhand, Chhattisgarh, and Gujarat, among other states, if the necessary permits are obtained.