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NPCIL IPO Likely After 15-Year Wait as Government Cuts Equity Support

The long-anticipated initial public offering (IPO) of Nuclear Power Corporation of India Limited (NPCIL) may finally materialize this year, ending a wait of over 15 years. The development comes as the government signals a shift in its funding strategy for the state-owned nuclear power operator.

According to updates shared with a Parliamentary Standing Committee, the Department of Atomic Energy has significantly reduced equity support to NPCIL in the Union Budget 2026–27—from Rs3,042 crore in the previous year to just Rs100 crore. This sharp decline is attributed to the company’s plans to raise capital through a public listing.

NPCIL, India’s sole operator of nuclear power plants, currently manages 24 reactors with a combined installed capacity of 8,780 MW. The company has been a key contributor to the country’s base-load power supply, ensuring stable electricity generation.

Operationally, NPCIL has shown growth in electricity output, generating 56,881 million units in 2024–25 compared to 47,971 million units in the previous year. This increase supported higher revenue, which rose to Rs19,880 crore during the same period.

However, profitability has come under pressure. Despite a strong operating surplus—driven by production costs of Rs10,904 crore against total revenue—profit before tax declined to Rs4,343 crore. The dip is largely due to higher financing costs, depreciation, and other non-operational expenses absorbing a significant portion of earnings.

The potential IPO is expected to mark a major milestone for India’s nuclear energy sector, opening up new avenues for investment while reducing reliance on direct government funding.