Nuclear power plants generate electricity by harnessing heat from nuclear reactions instead of burning fossil fuels. These facilities consistently produce large amounts of electricity using nuclear fuel using radioactive substances like uranium-235.
India currently has 22 operational nuclear reactors with a cumulative capacity of 6.8 GW, contributing approximately 3% to the country’s energy mix. As of May 2023, nuclear energy in India generated 6,780 MU of power, representing 1.6% of the total energy production.
India aims to increase its nuclear power capacity from 7,480 MWe to 22,480 MWe by 2031-32 and has set an ambitious goal to generate 9% of its electricity from nuclear sources by 2047. To meet the growing demand, the Indian government is in talks with a Russia-based firm to build more nuclear power plants in the country.
Russia is a leader in building nuclear power plants, boasting significant expertise in this field due to advancements in technology, innovative projects, and cost-effectiveness.
Russia’s state atomic energy corporation, Rosatom, and the Indian government are currently in talks for the construction of six high-power nuclear power units, each with a capacity of 1,000 MW.
ROSATOM is the only company in the world that possesses all the technologies of the nuclear fuel cycle, from uranium mining to the decommissioning of nuclear facilities.
In December 2014, during President Putin’s visit to India, India’s Department of Atomic Energy (DAE) and Rosatom signed the ‘Strategic Vision’ for strengthening cooperation in the peaceful uses of atomic energy. This agreement led to the construction of the Kudankulam Nuclear Power Plant (KNPP) in India, built with Russian cooperation.
Here is a list of major stocks poised to benefit from India and Russia’s deal to construct nuclear power plants.
Sealmatic India Ltd
Sealmatic India Ltd is India’s only domestic manufacturer or monopoly company in mechanical seal production. Sealmatic is the only mechanical seal company in India which has received ISO 19443 accreditation for Nuclear Applications.
The company’s mechanical seals are primarily employed in the pulp and paper, oil and gas, refinery, petrochemical, chemical, fertiliser, power, mining, aerospace, marine, pharmaceutical, and other industrial fields.
It is one of the few Indian companies that has been approved/registered as a vendor with both national and international clients. It is the only indigenous mechanical seal producer approved by BHEL for thermal power plant components and it operates in over 45 countries worldwide.
On Friday, Sealmatic India Ltd shares were trading at Rs 706.95 on the Bombay Stock Exchange, down 1.47 percent, and the company has a market capitalization of Rs 650 crore.
Bharat Heavy Electricals Ltd (BHEL)
Bharat Heavy Electricals Limited (BHEL) is India’s largest engineering and manufacturing company in the public sector. It specializes in producing integrated power plant equipment and weaponry, catering to both domestic and international markets.
BHEL is renowned for its expertise in designing, manufacturing, testing, and supplying critical nuclear components, such as steam turbine generator sets, reactor headers, steam generators, heat exchangers, and pressure vessels.
Notably, BHEL has provided steam turbine generator sets for nearly 50% of India’s total installed nuclear capacity. The company has also collaborated with GE Steam Power to locally manufacture nuclear steam turbines in India.
Recently, BHEL and Nuclear Power Corporation of India Ltd (NPCIL) have entered into an MoU to jointly explore business opportunities in nuclear power plants based on Pressurized Heavy Water Reactor (PHWR) technology.
On Friday, BHEL Ltd shares were trading at Rs 324.45 on the Bombay Stock Exchange, down 2.42 percent, and the company has a market capitalization of Rs 1,12,254 crore.
Power Mech Projects Ltd
Power Mech Projects Ltd is a leading integrated power infrastructure services company based in India. They specialize in providing comprehensive services including erection, testing, and commissioning of boilers, turbines, and generators (ETC-BTG), balance of plant (BOP) works, civil works, and operation and maintenance (O&M) services.
The company has expertise in civil, structural, and architectural works for turbine projects in the nuclear power sector.
In 2024, Power Mech Projects secured a significant contract valued at Rs 563.23 crore (approximately $68 million) from Bharat Heavy Electricals Limited (BHEL) for the construction of Units 5 and 6 of the Kaiga Atomic Power Project in Uttar Kannada district, Karnataka.
As of Friday, Power Mech Projects Ltd shares were trading at Rs 5,776 on the Bombay Stock Exchange, reflecting a 4.81 percent increase, with the company’s market capitalization standing at Rs 8,703 crore.
Walchandnagar Industries Ltd
Walchandnagar Industries Ltd is a diversified heavy engineering company specializing in engineering, fabrication, and manufacturing machinery for various sectors such as sugar plants, cement plants, boilers, heavy-duty gears, mineral processing, and general engineering equipment.
For over four decades, Walchandnagar Industries Ltd has partnered with key entities including the Department of Atomic Energy (DAE), Nuclear Power Corporation of India Limited (NPCIL), and Bhabha Atomic Research Centre (BARC).
The company is a supplier of Class I nuclear components to NPCIL, BARC, and BHAVINI, and has supplied critical equipment such as Dump Tanks, Fuel magazines, Calandrias, End shields, Moderator Heat Exchangers, and Steam Generators for nuclear power plants.
On Friday, Walchandnagar Industries Ltd’s shares were trading at Rs 366.05 on the Stock Exchange, reflecting a 0.61 percent increase, with the company’s market capitalization standing at Rs 2,011 crore.
Hindustan Construction Company Ltd (HCC)
Hindustan Construction Company Limited (HCC) is the flagship company of Hindustan Construction Company Group (HCC Group) and is involved in engineering and construction of infrastructure projects such as dams, tunnels, bridges, hydro, nuclear, and thermal power plants, expressways, and roads, marine works, water supply, irrigation systems.
HCC has executed over 65% of India’s nuclear power generation capacity In 2010, HCC was involved in constructing India’s largest nuclear power plant – the Kudankulam Nuclear Power Plant in Tamil Nadu.
The company has expertise in constructing critical structures required for nuclear power plants, including reactor buildings, turbine buildings, and auxiliary structures.
On Friday, Hindustan Construction Company Ltd shares were trading at Rs 50.59 on the Stock Exchange, reflecting a 1.13 percent decrease, with the company’s market capitalization standing at Rs 8,494 crore.
Larsen & Toubro Ltd (L&T)
Larsen & Toubro (L&T) stands as the sole Indian manufacturer authorized by the American Society of Mechanical Engineers (ASME) to utilize ‘N’, ‘NPT’, ‘NA’ stamps, and ‘NS’ certification. This authorization empowers L&T to design, manufacture, and construct nuclear island equipment in accordance with American standards.
The company plays a pivotal role in the nuclear power sector, offering comprehensive services from design and equipment manufacturing to erection, construction, and commissioning.
L&T specializes in manufacturing critical nuclear components such as reactors, steam generators, control rod drive mechanisms, heat exchangers, valves, and NSSS pipelines. Recognizing its significant contributions to the nuclear power plant sector, L&T was honored with the prestigious ‘INS Industrial Excellence Award’.
On Friday, Larsen & Toubro Ltd shares were trading at Rs 3,637.95 on the Stock Exchange, reflecting a 0.43 percent increase, with the company’s market capitalization reaching Rs 5,11,398 crore.
Written by Omkar Chitnis
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