India Poised to Produce SMRs at 30% Lower Global Cost

Larsen & Toubro (L&T) asserts India can produce Small Modular Reactors (SMRs) at least 30% cheaper than international players, estimating costs around ₹30 crore per MW compared to global rates of ₹50-100 crore. This follows the SHANTI Act 2025, allowing private ownership of nuclear plants. While experts debate SMR viability, L&T highlights India's nuclear experience. Challenges include lack of viability gap funding and higher GST on nuclear equipment. L&T is also exploring owning nuclear plants for its energy-intensive data centers.

India's Larsen & Toubro (L&T), a prominent nuclear plant equipment manufacturer, is confident the nation can produce Small Modular Reactors (SMRs) at least 30% cheaper than international competitors. Anil V. Parab of L&T estimates India could manufacture SMRs for approximately ₹30 crore per MW, significantly less than global prices ranging from ₹50 crore to ₹100 crore per MW, attributing this to L&T's six decades of nuclear expertise. This optimism follows the SHANTI Act, 2025, which allows private sector ownership of nuclear power plants. However, experts like Dr. Anil Kakodkar caution that SMR economic viability remains uncertain without securing large-scale orders.Parab noted that despite SMRs' inherent complexity compared to India's ₹15 crore/MW PHWRs, shared critical systems help distribute costs effectively. While prioritizing domestic demand, he acknowledged export potential for India's competitive PHWR technology and the possibility of licensing DAE's indigenous SMR designs, such as the Bharat Small Reactor, to foreign players, particularly in Asia. The article highlights policy hurdles for nuclear energy in India: it lacks viability gap funding (unlike green hydrogen or EVs) and faces an 18% GST on equipment, higher than the 5% for other renewables. Additionally, the absence of a formal 'green' classification limits access to green financing and incentives. Intriguingly, L&T is exploring owning nuclear plants, seeing strategic value in co-locating power generation with its energy-intensive L&T Vyoma data centers, a logical step given the escalating energy demands of AI infrastructure.