Industrial Update – Newsletter – May 2026
IMAP’s Industrials group brings you this monthly update with a focus on latest news, transactions and interesting snippets from the Industrials domain in India
Soaring power demand, decarbonization, reduced import dependence and the need for a reliable source for baseload power has meant that India has planned a massive expansion in nuclear power generation
Small Modular Reactors (SMRs) could play a significant role in bridging this gap. SMRs are an emergent class of nuclear fission reactors with a rated power of less than 300 megawatts (MWe), built using modular design principles, to create “factory built” nuclear reactors. This sharply reduces build-time & cost, enhancing scalability. They meet the need of sectors such as steel, cement, aluminium, data-centers etc. that require stable baseload power which intermittent renewables can’t guarantee.
GOI has allocated ₹20,000 Cr in 2025-26 to fast-track the development and deployment of SMRs, targeting 5 SMRs by 2033. Further, the Nuclear Power Corporation of India Ltd (NPCIL) has issued an RFP inviting private companies to finance & build SMRs for captive use & selling excess power. NPCIL would oversee construction and manage operations. Six groups : Adani, Reliance, Hindalco, JSW, JSPL & TATA Power have already applied
GOI also passed the SHANTI Act in Dec 2025 enabling private sector participation & FDI in civil nuclear projects. Importantly, the act removed unlimited supplier liability which had been a key constraint in nuclear power growth & aligns India’s regulatory regime with global conventions.
Growth is anticipated across the sector. L&T has formed a technology partnership with US based Holtec International to manufacture and deploy SMRs globally. There is also a potential opportunity for certified manufacturers of components like reactor pressure vessels (RPVs), steam generators, containment structures, specialized forgings & castings, coolant management (pumps, valves & continuous filtration systems) and power electronics.
Current beneficiaries include:
Some recent transactions
Recent News
- India signed 7 critical agreements with UAE, crucially Abu Dhabi National Oil Company committed to storing 30 Million barrels of crude in India’s strategic reserves
- Tata Electronics and Dutch semiconductor equipment manufacturer ASML signed a strategic partnership for a commercial semiconductor fab plant in Dholera, Gujrat
- JSW Steel commenced project development on a 13.2 MTPA steel plant in Paradeep, Orissa, to capitalize on the region’s vast raw material reserves
- India’s Manufacturing PMI rose to 54.7 in April-26 from 53.9 in March-26, still slower growth due to global supply chain distribution
- Amidst high oil prices, and strong FPI outflows of ₹ 27,000 Cr in May, the Indian rupee reached at an all-time low of ₹97.15 to the USD
IMAP Industrials Index & Valuation of sub-segments
Commodity Prices Index
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