Kudankulam Nuclear Plant Cost Revision: UPSC

UPSC Mapping

Prelims

Nuclear Reactors, VVER, PHWR, Nuclear Fission

Mains

GS Paper III – Science & Technology, Infrastructure and Energy Security

Quick Facts

Original Cost	₹89,470 crore
Revised Cost	₹1,38,330 crore
Increase	Nearly 55%

What is Kudankulam Nuclear Plant?

Kudankulam Nuclear Plant is a nuclear power project using VVER (Water-Water Energetic Reactor) technology, a Russian-designed pressurised water reactor that uses enriched uranium fuel. Electricity is generated through nuclear fission, where uranium-235 atoms split in a controlled chain reaction to produce heat, steam, and electricity.

Why is Kudankulam Nuclear Plant in News?

The estimated cost of Kudankulam Units 5 and 6 has increased from ₹89,470 crore to ₹1,38,330 crore, representing a rise of nearly 55%. The increase is attributed to the Russia–Ukraine war, inflation, extended construction periods, and higher financing costs.

Key Features

• VVER technology: A Russian-designed pressurised water reactor using enriched uranium.
• Nuclear fission: Controlled chain reactions generate heat for electricity production.
• PWR design: Water functions as both coolant and moderator under high pressure.
• Energy security: Nuclear power supports reliable electricity generation and reduces dependence on fossil fuel imports.
• Three-stage programme: India’s PHWR–Fast Breeder–Thorium reactor strategy.

Challenges

• Russia–Ukraine conflict: Supply chain disruptions increased equipment costs.
• Inflation: Rising prices affected construction materials and specialised components.
• Extended construction: Long implementation periods increased labour and interest expenses.
• Financing costs: Interest accumulated during project execution.
• Capital intensity: Capital expenditure accounts for a major portion of nuclear electricity costs.

Way Forward

Nuclear power remains important because it offers reliable, low-carbon electricity and supports India’s energy security objectives. Improved project execution and cost management can enhance the viability of future nuclear investments. Nuclear expansion aligns with India’s Net Zero 2070 target, rising electricity demand, and reduced fossil fuel imports.

Prelims Practice Corner

Q1. The Kudankulam Nuclear Plant uses which reactor technology according to the uploaded source?
(a) BWR (b) PHWR (c) VVER (d) AGR
Answer: (c) VVER.

Q2. In a Pressurised Water Reactor, water primarily acts as:
(a) Fuel (b) Moderator and coolant (c) Control rod (d) Turbine
Answer: (b) Moderator and coolant.

Q3. LCOE stands for:
(a) Levelised Cost of Electricity (b) Low Cost of Energy (c) Long-term Cost Estimate (d) Load Capacity Efficiency
Answer: (a) Levelised Cost of Electricity.

Mains Practice Questions

Q1. Discuss the importance of nuclear energy in ensuring India’s long-term energy security. (15 Marks)

Answer Structure:

• Intro: Define energy security.
• Body: Reliable power, low-carbon energy, infrastructure challenges, and financing.
• Conclusion: Emphasise sustainable expansion.

Q2. Explain the reasons behind cost escalation in large infrastructure projects using the Kudankulam example. (10 Marks)

Answer Structure:

• Intro: Mention capital-intensive infrastructure.
• Body: Supply chains, inflation, financing, and implementation delays.
• Conclusion: Stress project planning and execution.

FAQs on Kudankulam Nuclear Plant

• What is VVER technology? The uploaded infographic describes VVER as a Russian-designed pressurised water reactor using enriched uranium fuel.
• Why have project costs increased? The rise is attributed to supply chain disruptions, inflation, extended construction periods, and financing costs.
• Why is nuclear energy important for India? Nuclear power provides reliable, low-carbon electricity and supports energy security and Net Zero ambitions.