L&T targets nuclear energy, expects 3x revenues in 5 years

MUMBAI: Engineering and construction conglomerate Larsen & Toubro (L&T) expects substantial growth in nuclear energy business revenue over the next five years, said a senior company executive. This would be bolstered by a global push towards nuclear power generation, triggered partly by rising electricity demand from emerging sectors such as AI and data centres.

"L&T has been associated with India's nuclear programme since its inception and has supported technology development, manufacturing and localisation," Anil V Parab, whole-time director and senior executive vice president, heavy engineering & manufacturing, told ET. "We will continue to support the government's push to scale nuclear capacity from about 8.8 GW currently to 100 GW by 2047."

"We realistically see a 3 to 3.5 times increase in nuclear-related revenues over the next five years, depending on how quickly projects are executed," said Parab.

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He said beyond India, L&T is evaluating global opportunities as nearly 32 countries are planning to significantly expand nuclear capacity, creating strong demand for manufacturing and engineering capabilities.

"We see opportunities internationally, particularly in manufacturing of critical equipment such as reactors, steam generators and pressurisers, which can be built in India and exported," he said. In West Asia, including markets like Abu Dhabi, the company is scouting for construction and project execution roles.

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Parab however, clarified that L&T doesn't have any plan to own or operate nuclear power plants. Instead, the company would solely focus on engineering, procurement and construction (EPC), manufacturing, project management contracts, and potentially expand into plant services as regulatory conditions evolve.

L&T's Hazira facility, established decades ago, has sufficient capacity to support a rapid scale-up in nuclear projects without significant fresh capital expenditure.

The company is also in discussions with global technology providers for both large reactors and small modular reactors (SMRs), though these partnerships are still at a preliminary stage and are likely to progress once projects achieve financial closure.

Accelerated growth in AI and data centres is partly helping drive the nuclear energy push. Industry leaders globally, including hyperscalers, are increasingly turning to nuclear power for its ability to provide stable, round-the-clock clean energy.

For India, scaling up nuclear capacity could play a critical role in supporting energy-intensive sectors while advancing energy security.

To be sure, challenges remain in areas such as cost competitiveness, policy support, and faster project execution for determining the pace of nuclear expansion.

Companies are calling for reforms such as lower taxation, green energy classification, and financial incentives to make nuclear power more viable.