Indian Oil Corp in talks with NPCIL for developing small nuclear units

4 Apr 2024 , 01:31 PM

The state-run Indian Oil Corp. Ltd. is in exploratory talks with India’s atomic power monopoly about building tiny nuclear units, an early-stage technology that is viewed as a cost-effective alternative to larger plants.

The refiner and gasoline retailer is considering a collaboration with the state-controlled Nuclear electricity Corp. of India Ltd. to utilise small modular reactors, or SMRs, in its refineries for clean electricity, according to Alok Sharma, Indian Oil’s head of research and development, speaking at a conference in New Delhi on Wednesday.

As numerous larger projects suffer delays, regulators are supporting small-scale nuclear technology with a capacity of up to 300 megawatts, which is faster to build and more adaptable to grid requirements. To help the fledgling sector, the Indian government is contemplating allowing private companies to manage and maintain reactors.

In addition to Indian Oil, state-run electricity producer NTPC Ltd. and hydrocarbons producer Oil & Natural Gas Corp. Ltd. are researching nuclear potential. India generates almost three-quarters of its power from coal, with nuclear accounting for approximately 3%.

According to the International Atomic Energy Agency, only China and Russia now operate SMR units, with several other countries preparing to do so.

At around 1.25 PM, Indian Oil was trading 1.67% lower at ₹170.80, against the previous close of ₹173.70 on NSE. The counter touched an intraday high and low of ₹174.95, and ₹169.05, respectively.

Indian Oil Corporation Limited (IOCL) is an Indian state-controlled oil and gas business based in Mumbai, Maharashtra. Indian Oil Corporation Ltd. was created in 1964 by the amalgamation of Indian Refineries Ltd. (est. 1958). Indian Oil Corporation Ltd. (Indian Oil) is India’s largest public corporation by revenue and a Maharatna company in India.

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