L&T gears up for nuclear entry, to focus on small modular reactors

Company is actively scouting for global technology partners in the US and Europe

With the regulatory approval from the US Department of Energy in its kitty, Indian multinational conglomerate L&T is planning to focus on manufacturing small modular reactors (SMRs) to play a leading role in the commercialisation of nuclear energy in India.

 

“Nuclear by nature is long gestation. The global trend is now to move from these large reactors to small reactors. That technology is now available, but we'll have to have the right tie-ups,” said Subramanian Sarma, Deputy Managing Director & President, L&T. 

The company is now actively scouting for global technology partners in the US and Europe, he added.

 

SMRs are advanced nuclear reactors with a capacity of up to 300 Mw, about a third of traditional reactors, offering faster, cheaper deployment and greater siting flexibility.

 

“We have very good manufacturing capability. Perhaps we are one of the only ones who have the ability to manufacture these reactors, and we also have the full EPC capability to build those plants, including the control system,” Sarma said.

 

The company received regulatory approval from the US Department of Energy to transfer SMR technology in March, marking the formal launch of its nuclear energy initiative.

 

L&T’s Chairman and Managing Director S N Subrahmanyan, in the company’s annual report, said that this positions L&T to play a leading role in the commercialisation of nuclear energy in India. 

 

Talking about the contingent liability issue, Sarma said, “Currently it's a red flag for all of us.”

 

India’s Civil Liability for Nuclear Damage Act, enacted in 2010, places the burden of liability for nuclear incidents on suppliers, deterring foreign technology providers and EPC players. The issue is being sorted, with top government officials working on it and a possible resolution in three to six months, which has to be cleared by the Parliament.

 

Once addressed, it could unlock the market for compact, factory-built SMRs, which are gaining global traction for their built-in safety features and scalability.

 

While nuclear energy currently accounts for less than 10 per cent of the global energy mix, Sarma said that these offer an effective path toward energy security and decarbonisation for India, which is still heavily reliant on energy imports. He added that India currently operates 24 to 27 nuclear reactors out of about 450 worldwide.

 

India Inc keen to invest

 

Other top groups, including Reliance, Tata Power and Adani groups, are also eyeing the nuclear power space. “We are waiting for change in the law wherein the government has to amend the law in allowing private sector participation in nuclear power plants, also the civil liability law. Once we get more clarity on that, we can share our plan to implement SMRs and other types of nuclear plants,” said Praveer Sinha, CEO, managing director, Tata Power, during the Q4 FY25 earnings call.

 

Reliance Industries chairman Mukesh Ambani also expressed interest in nuclear energy, saying the company plans to develop projects in Assam as part of its broader clean energy push. “Our priority is to make Assam a hub for clean and green energy. This will include nuclear energy, in line with the government’s new policy to invite private participation in the nuclear industry,” said Ambani at the Advantage Assam 2.0 Summit.

 

Meanwhile, the Adani Group is said to be exploring a 30 Gw nuclear portfolio, with plans to eventually replace its entire thermal capacity, according to reports. Chairman Gautam Adani and senior executives recently visited the Tarapur atomic site in Maharashtra, signalling intent to enter nuclear operations.   

Expanding footprint

  *  L&T gets US nod to transfer SMR tech, kick-starting nuclear foray.

  *  Scouting tech partners in the US and Europe for SMR collaboration.

  *  Civil liability law a key hurdle; resolution expected in 3–6 months.

  *  Tata, Reliance, Adani signal strong interest in nuclear energy.

*  SMRs seen as fast, scalable route to clean energy and energy security.