NPCIL's Forex Loss Soars 40-Fold on Weakening Rupee

Nuclear Power Corp. of India Ltd (NPCIL) has seen its foreign exchange loss surge to Rs 2,278 crore in FY26, a staggering 40-fold increase from the previous fiscal year's loss of Rs 56.11 crore.

The company attributes this significant jump to the weakening rupee against the dollar and Japanese yen, the currencies in which NPCIL has borrowed for its projects.

This development raises concerns over higher costs and tariffs for new nuclear projects, making nuclear power less competitive against thermal power and renewable energy sources. Ankit Jain, Vice President and Co-Group Head, Corporate Ratings, ICRA, warns that a sustained rupee depreciation could result in an increase of 4-5 percent in project costs, translating to 3-4 percent higher tariffs for nuclear power.