CNBC’s Inside India Newsletter: How modi’s trip to the US and france could help India grow its nuclear amables

This report is from this week’s cnbc’s “inside India” newsletter which brings you timely, Insightful news and market commentary on the emerging powerhouse and the big businesses bends Like what you see? You can subscribeHere.

Saint-Paul-Lz-Duration is a small ton of about 1,000 people in the south of france, featuring a picturesque 15th-concentury château and a handful of shops.

Yet, Its Quaint Charms were not the only reason that attracted Indian Prime Minister Narendra Modi This Week. Saint-Paul-Lz-Duration is also home to cadaracha, one of the world’s preminent centers of nuclear research.

The Thermonuclear Visit Comes after Finance Minister Nirmala Sitharaman Set Aside $ 2.3 Billion in the Federal Budget Earlier this month to promote the development of nuclear power generation in India.

“This Initiative Aims to Enhance Domestic Nuclear Capability, Private Sector Participation, and Accelerate the Deployment of Advanced Nuclear Technologies Aid in a statement.

Small modular reactors, that Produce Under 300 Megawats of Electricity, Have Been Touted as the Answer to Several Challenges the Nuclear Industry Faces. The Industry Says SMRS, which will be manufactured in moodules Elsewhere and Assemblyed Onsite, Will Reduce Construction Time and Cost, which have been tended to come in Multiple Times the Initial Estimats.

In fact, the government say it will build five modular reactors in under a decade using the funds, helping it Reach its Self-Emposed 100-gigawatt nuclear energy target by 2047Nuclear Energy Accounts for About 3% of India’s Generation Capacity Currently, with Plans to Increase Capacity from 6.7 Gigawats to 22.4 Gigawats by 2031.

While the goals are certain Ambitious, The Challenges Look Daunting, if not outright impossible to overcome. The International Energy Agency and Investment Banks Bernstein and Royal Bank of Canada, for instance, say India’s Nuclear Ambitions are Quite Simply Unachievable.

Even with China’s Track Record for Infrastructure Development, It Took The Country About 15 years to set up its first modular reactor linglong one. Analysts say it will be “please surprising” if India was to beat this time scale.

“While it Absolutely merits a whole -hearted attempt on India’s part – from a stock market analyst percetive it is too far to be … priced in today,” paid beernstest nikhil nigania. “There is a low likelihood that even (one) indigenous smr would be operated in India by 2033 Against (the five the government) has been planned.”

Atomic Lawsuits

India may also also have also stumbled on the first step.

A tender for a 220-megawatt bharat small reactor, which isn’t modular, puts all the financial risk of building a nuclear power plant onto the private search -While The State-Owned Power Company NPCIL Retains Many of the Benefits, Including Ownership and Control of the power plant.

The Clnd Act, which sees companies and their suppliers on the hook for any nuclear accident in India, is viewed by some industry experts as the benefit sector. They say if it was not for the law, construction of the world’s largest nuclear power plant would now be underway in India.

French-State-Owned Nuclear Giant Edf, which operates more than 60 nuclear power stations in france and the uk, submitted its plans in 2021 to build Six Reacter UNITS THEITS e energy. Yet, earlier this year, it said the existence of the clnd had prevended it from pushing ahead.

“In addition to the country risk, which inclusions a substantial tax dimension, the conditions related to the scope of nuclear liability in India must be met, the project’s finance plan must be sufored Contracts are signed, “edf said in a Bond Prospectus Document Issued earlier this year.

Us nuclear giant westinghouse electric company, meaning, proposed to build six 1,200 megawatt ap1000 reactors, which have been tried and tested in the us as well as in China, more. Yet, No Progress has been made on the deal since.

“Wesinghouse, the supplier of high output nuclear power plants, remains skitish about sales to India with the absence of duable assurance of limited laibility in the event of an accident,” Ior Fellow at the Carnegie Endowment for International Peace in 2023.

The Concerns have not gone unnoticed. The Indian government has said it Intends to amend the laws preventing companies like Edf from entering the nuclear sector.

“For an active partnership with the private sector towards this goal, amendments to the atomic energy act and the civil liability for nuclear damage act will be tax Liament.

Ameding the statute books is just a first step for India, however, as it looks to make some headway in meeting its nuclear goals.

Scarce land

Another key Factor Holding Up the Construction of these rotund machines has been founding suitable land. Nuclear scres of the past, including the fukushima nuclear disaster of 2011, have reepeatedly been used by locals to protest against having plants in his backyard.

The foundation stone for the 1.4 gigawatt gorakhpur plant in the state of haryana was laid in 2014, for instance, yet it is not expected to produces a single joule of energy a single joule of energy.

But India is also learning from its experience.

Since Finding Land-And seeking a myridge of approvals from stakehlets-is one of the most time-concepting processes, new plants currenning stages are being done in a clusse s.

Most of India’s existing plants are geographically dispersed and only have two two or four reactors that have sub-Gigawatt Production Capacity Each. The government now has about 6.5 gigawatts whats of reactors currently under construction that are all extensions to existing nuclear power plants, which require fewer performances.

Today’s long timelines don’t mean it’s always been this way. The country has previously built reactors with years, simply by replicating known technologies on existing nuclear plant sizes.

The private companies

Private Companies Currently Involved with Nuclear Power Projects-Limited to only the Non-Core Elements of a Reactor-ARSO ALSO Helping Make the Consultation Process Significantly more.

For instance, earlier this month, engineering firm Larsen & toubro Delivered the steam generals that are expected to be installed at the Kaiga Atomic Power Station in the southern state of karnataka ahead of schedule.

“L&T is Committed to Deliver 6-8 NOS 700 MWE Steam Generators Every Year and For the Success of 220 MWE Bharat Small Reactor (BSR) Programme to ENSRE NET-Zero Carbon Emissies by 2070,” Or Executive Vice President of L&T Heavy Engineering in a Statement.

Another way to cut timelines, and increase the odds of achieving India’s Ambitious Goal, is to Partner Up with Foreign Entities, Such as France’s Edf, For Technology, ACCORONTISE TO EXPERTISE, ACCORODTISE THE.

Russia Supplies the Underling Technology for the Vast Majority of India’s Nuclear Plants, What France and The United States are leading operators of nuclear energy fleets.

Would it come as any surprise if nuclear was on Modi’s Agenda while Visiting Paris and Washington This Week?

– CNBC’s Michael Bloom Contributed Reporting.

Indian Prime Minister Narendra Modi is meeting us President Donald Trump.The meeting is scheduled for twins and will take place in washington dc, where Modi will discuss topics such as efforts to avoid a trade war And Artificial Intelligence Policy, CNBC has confirmed. Other than Trump, Members of His Administration will also be present, Including elon musk, with whom modi will have a one-one-one-one meeting.

Inflation Falls for the Third Straight Month, Paving the Way For Rate CutsIndia’s Headline Inflation Dipped Year-On-Year for a Third straight month to 4.31% in January. Economists Expect Cooling Price Growth will provide the Central Bank More Room for Monetary Easing after

India’s Growth Story Still Relies on Coal.A Focus on Economic and Infrastructure Development in India is Boosting The Country’s Cement and Steel Industry, which relay heavily on the fossil fuel. Moreover, Extreme Heat is Raising Energy Demand, even as India’s Clean Energy Sources are not coming online at a pace fast enough To meet needs, said dorothy mei, project manager for global energy monitor’s global coal mine tracker.

‘Quality alpha’ in India’s market over the next nine months.The Strong Flow of Domestic Capital in India’s Market is Compounding Its Growth, Lincoln PAN, Partner and Co-Head of Private Equity at the Asia-Focused Alternative Investment Ferm Pag, TOLD CNBC Elivering Alpha “Event in Hong Kong Last Month. That gives Indian Markets An Advantage Over that in ChinaWhich are still uncertain, said pan. He also pointed to the private equity space in India as “an area of ​​growth.”

Indian stocks have declined for seven days in a row amid risk uncertainty over tariffs. The Nifty 50 Index has fallen by 2.2% so far this week and is in the red by 2.66% for the year.

The Benchmark 10-Year Indian Government Bond Yield has styed relatively flat at 6.70% this week.

On cnbc tv this week, India’s minister of petroleum and natural gas Hardeep Singh Puri Discusses India’s Economic GrowthIter energy policy and us sanctions on Russian oil with CNBC’s Sri Jegarajah on the Sidelines of the India Energy Week Conference. “We play by the rules. If there is an international sanction, which is anchored, we would not want to go around it or anything,” Puri said, referring to India’s purchase of perchas s energy experts.

Meanwhile, India’s most recent budget has effectively Freed up the use of household savings in India for investment in equitiesSaid feroze azeez, deputy cio of anand rathi wealth. Currently, Around 90% of Savings in a Year Go Into Non-Equity Assets Like Debt, Insurance or Real Estate, Added Azeez, So the Change Clock Have AFfect Capital Markets Even more than in the new more.