Hyderabad’s MEIL Secures Rs 12,800 Crore Contract for Two New Nuclear Reactors in Karnataka

Megha Engineering & Infrastructure Ltd. (MEIL), a prominent infrastructure company based in Hyderabad, has achieved a significant milestone by winning a contract valued at 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 awarded by the state-owned Nuclear Power Corporation of India Ltd. (NPCIL), is a key step in India's ambitious plan to enhance its clean energy capacity.

The journey to secure this monumental project began in May 2023 with the tendering process. The technical bids were opened in October, and MEIL faced stiff competition from industry heavyweights Bharat Heavy Electricals Ltd. (BHEL) and Larsen & Toubro (L&T). Despite the intense competition, MEIL's bid of Rs 12,799.92 crore emerged as the lowest, underscoring the company’s technical prowess and competitive pricing.

This project marks MEIL's significant foray into the nuclear power sector, broadening its extensive portfolio, which includes ventures in hydrocarbons, electric buses, defence, power, transport, and manufacturing. MEIL Director Ch Subbaiah lauded the contract as a "landmark achievement," highlighting the company's dedication to excellence and innovation.

The new reactors at the Kaiga plant are expected to substantially increase India's nuclear power capacity, contributing to the nation’s efforts to reduce carbon emissions and transition to clean energy sources. The Kaiga plant, which currently has an installed capacity of 880 MW, will more than double its capacity with the completion of this project.

The tender process for this project was notable for its use of the Quality-cum-Cost-Based Selection (QCBS) methodology, ensuring a rigorous evaluation of both the technical capabilities and cost-effectiveness of the proposals. This approach, used for the first time in a nuclear power project tender, set a new benchmark for future projects.

While this contract signifies a major advancement in India's energy sector, MEIL has not been without controversy. The company has faced allegations of corruption in the past, raising questions about the transparency of the bidding process. However, these allegations remain unverified and were not addressed during the tendering process.

As the project gets underway, it will be closely monitored by both the industry and the public, marking a pivotal development in India's pursuit of a sustainable and clean energy future.