Hyderabad-Based MEIL Wins Rs 12,800 Cr Contract to Build 2 New Nuclear Reactors in Karnataka

Megha Engineering & Infrastructure Ltd. (MEIL), a leading infrastructure company based in Hyderabad, has been awarded a groundbreaking contract worth Rs 12,800 crore (approximately $1.6 billion USD) to construct two 700-megawatt nuclear reactors at the Kaiga Nuclear Power Plant in Karnataka.

This contract, the largest ever issued by the state-owned Nuclear Power Corporation of India Ltd. (NPCIL), marks a significant step in India's ambitious clean energy initiatives.

MEIL secured the project after a rigorous tendering process that began in May 2023 and involved technical bids opening in October. Competing against industry giants Bharat Heavy Electricals Ltd. (BHEL) and Larsen & Toubro (L&T), MEIL emerged as the lowest bidder with a bid of Rs 12,799.92 crore, showcasing its technical expertise and competitive pricing.

This project represents MEIL's strategic entry into the nuclear power sector, expanding its already diverse portfolio that includes projects in hydrocarbons, electric buses, defence, power, transport, and manufacturing.

MEIL Director Ch Subbaiah hailed the contract as a "landmark achievement" and a testament to the company's commitment to excellence and innovation.

The construction of the two new reactors at Kaiga is expected to significantly boost India's nuclear power capacity, contributing to the country's goals of reducing carbon emissions and increasing its reliance on clean energy sources.

Currently, the Kaiga plant has an installed capacity of 880 MW, which will more than double upon the completion of this project.

The tender process followed a strict quality-cum-cost-based selection (QCBS) methodology, ensuring a thorough evaluation of both technical capabilities and cost-effectiveness of all proposals.

The project is also notable for introducing the QCBS methodology for the first time in a nuclear power project tender.

While this contract represents a major step forward for India's energy landscape, MEIL has faced allegations of corruption in the past, raising concerns about transparency in the bidding process.

These concerns, however, remain unverified and were not addressed in the tendering process.

The project is expected to commence soon, and its progress will be closely watched by the industry and the public alike as a pivotal development in India's clean energy journey.

 

[Ashish Sandhu]

Why do nuclear reactors cost so much? Is it due to material or nuclear fuel?

 

[M S Chatterji]

Why do nuclear reactors cost so much? Is it due to material or nuclear fuel?

The high cost of nuclear reactors is primarily due to construction, not fuel. The capital costs of building a nuclear power plant are much higher than other energy sources like coal and natural gas.

 

[Ashish Sandhu]

The high cost of nuclear reactors is primarily due to construction, not fuel. The capital costs of building a nuclear power plant are much higher than other energy sources like coal and natural gas.

Can you tell some common materials used in making nuclear reactors?

 

[M S Chatterji]

Can you tell some common materials used in making nuclear reactors?

Fuel
The most common fuel is uranium, particularly the U-235 isotope, which is processed into ceramic pellets and stacked into fuel rods. Other fuels include thorium and plutonium.

Moderator
Slows down neutrons to cause more fission. Graphite or heavy water are commonly used.

Coolant
Transfers heat. Water is most common, but some reactors use molten salt or liquid metal.

Shielding
Lead is commonly used as a shield