Adani to enter nuclear power via atomic energy arm

MUMBAI: After the Tata and JSW Groups, the Adani Group is firming up plans to enter the nuclear energy sector. This week, the Ahmedabad-based infrastructure conglomerate incorporated a new company, Adani Atomic Energy, for the purpose. The company, a wholly owned subsidiary of Adani Power, will "generate, transmit and distribute electricity derived from nuclear and atomic energy," Adani Power said in a regulatory filing.

The move follows India's decision to open the nuclear sector to private participation as part of its long-term energy transition strategy. The govt aims to raise nuclear capacity to 100 GW by 2047 from the current nine GW. Nuclear currently accounts for about 3% of India's total power generation, with a target to increase its share to 10% by 2047.

Adani's entry into nuclear power has drawn criticism from opposition parties, which allege that recent regulatory changes were designed to ease the group's entry into the sector. Following Adani Power's stock exchange filing, Congress spokesperson Jairam Ramesh said on X that the legislation was being enacted to "favour the favourite," referring to the Shanti bill as "Shriman Adani's Nuclear Tech Initiative."

Under the Shanti bill, private companies are permitted to build, own and operate nuclear power plants, including small modular reactors, through partnerships. It also allows up to 49% FDI in the sector.

However, uranium mining beyond specified thresholds will remain exclusively under govt control. Spent fuel management will also stay in govt custody under a defined long-term storage and handling framework. Strategic materials such as source material, fissile material and heavy water will continue to be tightly regulated by govt.