India's Tata Consulting Engineers Calls for Expanded Private Sector Participation in Nuclear Energy R&D

Amit Sharma, Managing Director and Chief Executive Officer of Tata Consulting Engineers (TCE), said that India's Department of Atomic Energy (DAE) should focus more on national strategic objectives and engage in deeper collaboration with the private sector in nuclear power generation-related fields.

Sharma stated that TCE has partnered with India's nuclear program for over five decades. The DAE's original core mission was to serve national strategic needs rather than directly undertake power generation. He believes the DAE could draw on the experience of the Indian Space Research Organisation (ISRO) in promoting private sector development, allowing enterprises greater scope for participation in nuclear energy R&D.

He noted that research facilities such as the Bhabha Atomic Research Centre (BARC) could be opened to the private sector under compliant conditions for testing nuclear technology concepts proposed by enterprises. Sharma said countries including China, the United States, and South Korea have already promoted similar collaboration through systematic arrangements.

In his view, following the passage of the Sustainable Harmonious Advancement of Nuclear Technology in India Act (SHANTI Act), interest in the nuclear energy sector among India's private enterprises has risen notably. The Act aims to address key issues such as liability in nuclear projects. Sharma stated that prior to this, non-state-owned enterprises were not permitted to conduct related nuclear science research.

TCE believes the nuclear energy sector holds significant commercial opportunities. Sharma revealed that the company is collaborating with several enterprises, including the JSW Group, Reliance Industries, and the Bajaj Group, to advance feasibility studies and related work for complex nuclear power plant projects.

Currently, nuclear energy business accounts for approximately 2% of TCE's revenue of INR 30 billion. Sharma expects that with increased private sector participation, this share could rise to 5% to 6% by the end of fiscal year 2030.

For large-scale nuclear power projects, Sharma believes that state-owned power utility NTPC Ltd, along with one or two financially strong conglomerates, may be capable of undertaking them. He noted that nuclear projects require an investment of over USD 3 million per megawatt, and constructing a 2,000 MW-class nuclear power plant would cost approximately USD 6 billion, meaning only a few entities can afford such investments.

He also anticipates growing interest in smaller nuclear power plants, including the widely discussed small modular reactors. In his assessment, such technologies are expected to mature around fiscal year 2031. Nuclear plants in the 200 MW to 300 MW range could attract captive power plant operators and data center operators, the latter having also expanded their investments in India in recent years. Given the difficulty of land acquisition, converting existing thermal power plants into small or medium-sized nuclear plants could also become an option.

Sharma also highlighted several lingering industry concerns. He stated that the government needs to commit to a stable supply of fuel required for nuclear plant operations, which is critical for enterprises planning substantial investments in the nuclear sector. Additionally, India needs to establish a truly independent regulatory body, further improving the regulatory framework on the basis of the existing Atomic Energy Regulatory Board (AERB).

Beyond nuclear energy, Sharma said TCE is working with five clients in the data center sector and is involved in six semiconductor projects. However, since much of this work involves lower complexity and higher commoditization, it may not become a major revenue source for the company in the future.

Affected by declining investment appetite among global clients, TCE expects revenue growth to slow to 14% to 16% in fiscal year 2027. With the integration of U.S.-based CDI Engineering Solutions completed, the company expects its operating margin for fiscal year 2027 to improve from 12.5% to 13% to 14%. TCE currently employs approximately 8,500 staff and will continue to recruit over 500 fresh graduates annually through campus hiring.