Megha Engineering makes formal entry in nuclear power space, wins Rs.12,800-crore EPC order

Orders & Contracts

T&D India
April 24, 2025

Megha Engineering & Infrastructure Ltd (MEIL) has won what could be the biggest-ever EPC order placed by Nuclear Power Corporation of India Ltd (NPCIL).

In a release, Megha Engineering said that it has formally received the purchase order for a Rs.12,800-crore EPC contract from NPCIL to construct two 700 MWe nuclear reactors—Kaiga Units 5 & 6—in Karnataka.

This is the biggest-ever order placed by NPCIL and marks MEIL’s first major step into the nuclear energy sector—a field that will help shape India’s energy future, the release said.

The order was formally handed over at NPCIL’s Mumbai headquarters to Ch. P. Subbaiah, Director, MEIL (Projects), and his team. (See photograph) “It was not just a professional achievement but a moment filled with pride, recognition, and a deep sense of responsibility,” the release noted.

QCBS

For the first time, NPCIL used the Quality-cum-Cost-Based Selection (QCBS) method for awarding this project—striking a careful balance between quality and cost. Competing with industry giants like BHEL and L&T, MEIL was chosen for its strong technical approach and competitive pricing, the release observed.

New chapter

With a solid track record of delivering large-scale projects across India and abroad, MEIL is stepping into this new responsibility with a strong sense of purpose and dedication. This step into nuclear energy adds a new chapter to MEIL’s journey and strengthens its growing role in shaping India’s infrastructure and energy future, the release added.

India’s nuclear power capacity

Nuclear Power Corporation of India Ltd (NPCIL) is currently the sole nuclear energy producer in the country. As of March 31, 2025, NPCIL, a Central PSU under the Department of Atomic Energy, had total installed capacity of 8,080 MW coming from 24 operational nuclear power units distributed over seven atomic power stations located in Maharashtra, Rajasthan, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh.

In FY25, NPCIL’s total power generation stood at 56681 MU (million units or million kwh or Gwh), up 18 per cent from 47971 MU in FY24.

As of March 31, 2025, NPCIL had 6,800 MW of new capacity under physical construction, coming from eight new atomic power units at four locations.

Fleet Mode Expansion

Apart from the 6,800 MW under construction, NPCIL has received Union government approval for taking up construction of 10 indigenous 700-MW PHWRs (pressurized heavy water reactors) in “fleet mode.” These will be installed at four locations —Haryana, Karnataka, Madhya Pradesh and Rajasthan.

The proposed Unit-5 and Unit-6 at Kaiga atomic power station in Karnataka, for which MEIL has been placed the EPC contract, is part of this fleet-mode capacity expansion.