Indian Railways has initiated talks with the Department of Atomic Energy (DAE) and the power ministry to set up small nuclear power plants to meet its energy needs and achieve its net-zero target by 2030.
The railways plan to source 10 GW of traction energy by the end of the decade, which includes 3 GW of renewable energy (including hydropower), 3 GW from thermal and nuclear power, and 4 GW through partnerships with power distribution companies in 2030.
The Indian Railways will provide land and offtake assurance, while DAE and the power ministry will manage the plants’ establishment and fuel supply agreements. The Indian Railways Finance Corporation (IRFC) will be responsible for financing these projects.
Earlier, discussions for a joint venture on nuclear plants were halted due to high costs. However, the focus on small modular reactors (SMRs) is seen as a more feasible solution, with the government aiming to operationalize five indigenously developed SMRs by 2033.
Listed below are some of the stocks that can benefit from the Railway’s demand for Energy across Fossil & Non-Fossil Fuels.
NTPC
This Maharatna is India’s largest integrated power company and operates under the Ministry of Power. With an installed capacity of 76 GW, it contributes over 25 percent of India’s power generation. NTPC aims to achieve 130 GW by 2032, focusing on renewable energy alongside coal, gas, and nuclear power sources.
With a market capitalization of Rs. 3,40,498.43 Crores, the shares of NTPC Limited closed at Rs. 351.15 per equity share, up 2.78 percent from its previous day’s close price of Rs. 341.65.
Larsen & Toubro
This conglomerate Operates in over 50 countries while specializing in EPC projects, manufacturing, IT services, defence, and financial solutions. They serve industries such as infrastructure, energy, and technology globally.
With a market capitalization of Rs. 4,69,945.43 Crores, the shares of Larsen & Toubro closed at Rs. 3,417.35 per equity share, up 2.03 percent from its previous day’s close price of Rs. 3,349.20.
Hindustan Construction Company
The company is a leading Indian engineering and construction firm with renowned landmark projects like the Bandra-Worli Sea Link and specializes in hydropower, nuclear power, roads, bridges, and tunneling.
With a market capitalization of Rs. 5,001.48 Crores, the shares of Hindustan Construction Company Limited closed at Rs. 27.49 per equity share, up 11.75 percent from its previous day’s close price of Rs. 24.60.
MTAR Technologies
This company specializes in precision engineering for the defence, aerospace, nuclear, and clean energy sectors. They manufacture critical components and systems with seven manufacturing units.
With a market capitalization of Rs. 4,133.78 Crores, the shares of MTAR Technologies Limited closed at Rs. 1,343.90 per equity share, up 1.91 percent from its previous day’s close price of Rs. 1,318.65.
Sealmatic India
The company specializes in manufacturing mechanical seals and sealing systems for industries like oil & gas, petrochemical, pharmaceutical, power, and marine. While serving clients in over 45 countries, they provide critical applications such as nuclear power plants and thermal power projects.
With a market capitalization of Rs. 359.38 Crores, the shares of Sealmatic India Limited closed at Rs. 397.10 per equity share, up 0.29 percent from its previous day’s close price of Rs. 395.95.
Written by Santhosh S
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