MSMEs Can Tap Nuclear Supply Chain Despite High Risks, Experts Say in Chennai

Micro, small, and medium enterprises (MSMEs) have significant opportunities to participate in India's expanding nuclear energy sector, but must navigate hurdles involving cost, certification, and standardisation, industry experts said at an event in Chennai on Thursday.

Speaking at the congress of the American Society of Mechanical Engineers (ASME) India held in the city, industry leaders emphasised the need for greater support from tier-1 companies to help smaller manufacturers integrate into the supply chain.

V P Joy, senior executive vice president at Reliance Industries, noted that MSMEs can access immense, high-volume opportunities in specialized piping, tooling, and modular sub-assemblies. However, he stated that supporting their growth requires establishing a targeted national ecosystem centered on training, international licensing, collaborative networks, and dedicated financing mechanisms.

Joy pointed out that suppliers face stringent compliance demands in this sector. MSMEs face a dual challenge where they must not only manufacture high-quality products correctly, but must also prove they made them correctly, with material traceability being of prime importance, he explained. He added that manufacturing massive components, such as steam generators, continues to remain with major industrial players.

Addressing the congress, Vikram Sehgal of the L&T nuclear equipment business group stated that while many MSMEs currently supply the industry, smaller enterprises frequently view nuclear contracts as carrying high-cost and high-liability risks. He observed that many firms continue to lack awareness regarding technical requirements and the overall scale of opportunity.

Sehgal also highlighted the country's domestic manufacturing capabilities, stating that India has achieved a 100% indigenised ecosystem for pressurised heavy water reactors (PHWRs).