Railways in talks with DAE, power ministry to set up small nuclear power plants for clean energy

The Indian Railways has initiated discussions with the Department of Atomic Energy (DAE) and power ministry to set up small nuclear power plants for its energy requirements, a move that will also help the national transporter to achieve its net zero goal by 2030.

The Indian Railways will offer land and offtake assurance while DAE and the power ministry will facilitate establishment of plants with a fuel supply agreement, said officials aware of the development.

“Discussions have begun…This would help railways achieve net zero swiftly,” a senior official told ET. Plants will help the national transporter to meet the 10 GW traction requirement by the end of the decade.

The railways plans to buy 3 GW of renewable energy including hydropower and another 3 GW of thermal and nuclear power in 2030.

The remaining 4 GW needed for traction (energy used to run trains) will be sourced through tieups with power distribution companies.

Land is not an issue for railways and work has begun on identifying sites, said the official.

“Public sector financing arms under Indian Railways will provide the funding support for these projects,” another senior official told ET.

The Indian Railways Finance Corporation (IRFC) is said to be among those who will be tasked with raising funds for these projects.

In 2016, the railways had held exploratory discussions for setting up a joint venture to set up nuclear power plants. But those plans did not take off due to the costs involved.

Nuclear energy is in focus now after a Rs 20,000 crore Nuclear Energy Mission was launched in the February 1 budget.

The programme is aimed at operationalising at least five indigenously developed Small Modular Reactors (SMRs) by 2033. The government is keen on moving large consumers to nuclear energy to hasten the country's green transition. Emphasis on SMRs is expected to make this switch easier, said an industry expert.

Responding to a query last week, railways minister Ashwini Vaishnaw told the Rajya Sabha that the Nuclear Power Corporation of India Limited (NPCIL) and the power ministry had been approached for the allocation of nuclear power to the national transporter. He also said the power requirement of Indian Railways is increasing consistently.

“Railways has been exploring the option of sourcing power from existing as well as upcoming nuclear power plants to meet part of its traction power requirement,” Vaishnaw said.