Four new units at India's Kudankulam nuclear power plant delayed by three years, cost overrun of 55% to $14.4 billion

The construction cost of four new units at the Kudankulam nuclear power plant being built by Russia's Rosatom in India has increased by 55% since 2024 due to delays. Each unit has a capacity of 1 gigawatt, and the updated total construction cost has reached 1.38 trillion Indian rupees (approximately $14.4 billion). Among them, the construction cost of Units 3 and 4 has increased by 73%, while the cost of Units 5 and 6 has risen by 40%.

Russia had previously provided India with $4.2 billion in state credit for the construction of Units 3 and 4. Indian officials stated that the reasons for the delays include the impact of the COVID-19 pandemic, difficulties in the supply of specific materials and equipment, and problems faced by contractors. Despite the impact of sanctions, a Rosatom official stated that risks have been reduced to 98%.

Jitendra Singh, India's Minister of State for Atomic Energy, revealed the updated timeline. The first unit is expected to begin commercial operation in June 2027, and the construction of all four reactors is planned to be completed by March 2030. Previously, India had expressed hope to complete all new units by 2027. The nuclear power plant is being built with Rosatom's participation under an intergovernmental agreement signed between Russia and India in 1988.

The first two 1-gigawatt units of the Kudankulam nuclear power plant began operation in 2013 and 2016, respectively. Russia continues to provide state credit to India to support the implementation of the project. The increase in construction costs will add to the financial burden of the New Delhi government and may lead to a rise in the unit price of the electricity generated.