According to a senior company executive, this optimistic outlook is underpinned by a worldwide pivot towards nuclear power, which is being increasingly driven by the immense electricity requirements of emerging technologies like artificial intelligence and data centres.
Anil V Parab, who serves as a whole-time director and senior executive vice president for heavy engineering and manufacturing, highlighted that the firm has been an integral part of India’s nuclear journey since its very beginning.
The company has historically provided essential support for technology development, domestic manufacturing, and the localisation of critical components.
The firm is committed to supporting the Indian government’s ambitious long-term strategy to expand nuclear capacity. This plan seeks to transition from the current level of approximately 8.8 GW to a substantial 100 GW by the year 2047.
Within this framework, L&T realistically expects its nuclear-related turnover to increase by 3 to 3.5 times over the next five-year period, though the executive noted this timeline is dependent on the speed of project execution.
Beyond domestic borders, the company is actively assessing international prospects as nearly thirty-two countries prepare to expand their nuclear infrastructure. This global trend is generating robust demand for the specialised manufacturing and engineering expertise that L&T possesses.
Specifically, the company identifies a major opportunity in the production of high-stakes equipment such as reactors, steam generators, and pressurisers. These critical units can be manufactured within India and then exported to international markets.
Furthermore, in regions such as West Asia, including Abu Dhabi, the firm is exploring potential roles in construction and the direct execution of large-scale projects.
Parab made it clear, however, that L&T has no intentions of becoming an owner or operator of nuclear power stations. The corporate strategy remains firmly rooted in providing engineering, procurement, and construction services, alongside manufacturing and project management.
There is also a possibility of expanding into plant maintenance services as the regulatory environment continues to change.
Financially, the company is well-positioned for this expansion because its established Hazira facility already possesses the necessary capacity. This allows for a rapid increase in project volume without the immediate requirement for significant new capital expenditure.
Additionally, the conglomerate is currently engaged in preliminary discussions with international technology providers. These talks cover both traditional large-scale reactors and the emerging field of small modular reactors, with partnerships expected to solidify once projects reach the stage of financial closure.
The rapid proliferation of data centres and AI infrastructure is a key catalyst for this renewed interest in nuclear power. Major global industry players, particularly hyperscalers, are looking toward nuclear energy because it offers a rare combination of carbon-free emissions and stable, round-the-clock power generation that intermittent renewables cannot always provide.
For the Indian economy, scaling up nuclear power is seen as a vital step in supporting energy-intensive industries while simultaneously enhancing national energy security.
However, the path forward is not without its hurdles, as the pace of expansion will be determined by cost competitiveness, the level of policy support, and the efficiency of project timelines.
To ensure the viability of these massive investments, industry leaders are advocating for specific reforms. These include requests for lower taxation, the official classification of nuclear power as a green energy source, and various financial incentives to help the sector compete more effectively in the modern energy market.
ET Manufacturing
