In a significant move for India's atomic energy sector, state-owned power giant NTPC Ltd is set to partner with a Chicago-based American company to accelerate the development of thorium as a domestic nuclear fuel. This strategic collaboration follows the landmark passage of the SHANTI Act in 2025, which opened India's nuclear sector to private participation.
A Strategic Equity Infusion for Energy Security
The Board of NTPC has cleared a proposal for a minority equity investment in Clean Core Thorium Energy (CCTE), according to sources. This early-stage investment is a strategic step by India's largest power utility to secure a foothold in the niche area of advanced nuclear fuel cycles. The proposal is currently awaiting necessary clearances from the Ministry of Power.
This move aligns with NTPC's ambitious goal of establishing 30 Giga Watt electric (GWe) of atomic energy capacity by 2047. It also marks a pivotal step towards closer India-US cooperation on atomic energy, coming at a time when CCTE is only the second American firm in nearly two decades to receive an export license from the US Department of Energy (DoE) to sell nuclear technology to India.
Unlocking India's Thorium Potential with ANEEL Fuel
The core of the partnership revolves around CCTE's proprietary fuel, called ANEEL (Advanced Nuclear Energy for Enriched Life). Unlike traditional approaches that required building entirely new reactors, ANEEL is a breakthrough fuel that blends thorium with a concentrated form of uranium known as HALEU (High-Assay Low-Enriched Uranium).
The key advantage is that this fuel can be directly loaded into India's existing fleet of Pressurised Heavy Water Reactors (PHWRs), which form the backbone of the country's nuclear power program. This offers a pragmatic pathway to utilizing India's vast thorium reserves without the need for a complete reactor fleet overhaul.
India holds abundant thorium deposits, primarily found in the coastal sands of Kerala, Odisha, Tamil Nadu, Andhra Pradesh, Maharashtra, and Gujarat, along with inland deposits in Jharkhand and West Bengal. In contrast, the country has scarce uranium reserves. Thorium has been a cornerstone of India's long-term energy strategy since the 1950s because it is more plentiful, generates less long-lived radioactive waste, and reduces proliferation risks compared to uranium.
Bypassing Delays and Accelerating the Three-Stage Program
The collaboration could help India navigate around delays in the second stage of its three-stage nuclear power program, which involves Fast Breeder Reactors (FBRs). Eminent nuclear scientist and former Atomic Energy Commission chairman, Anil Kakodkar, explained that by irradiating thorium along with HALEU in existing PHWRs at scale, India can produce fissile material (Uranium-233) from thorium.
This process essentially allows the launch of the third, thorium-based stage of the nuclear program earlier, without having to wait for the full build-up of FBR capacity. The used fuel from PHWRs can later be recycled to set up additional power generation capacity, including through advanced Molten Salt Reactors (MSRs).
The passage of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 laid the groundwork for this development. The legislation marked a historic shift by allowing private sector participation in nuclear power operations and fuel management, areas tightly controlled by the public sector for decades.
This partnership between NTPC and Clean Core Thorium Energy, led by Indian-origin CEO Mehul Shah, represents a concrete step towards energy self-reliance. It promises to enhance fuel security, improve safety, reduce nuclear waste, and potentially lower operating costs for India's nuclear power infrastructure.
