According to Datt, chairman and managing director Bharat Electronics, the expenditure on the initiative had not been finalized as the discussion is yet to take place with “the fellows who will finally come and do the nuclear reactors”.

Datt said Bharat Electronics and Bharat Heavy Electricals Limited (BHEL) are presently studying the financial viability of their proposed joint initiative in solar energy, where the investment by the two companies would be almost INR25 billion if the companies decide to go ahead with the project.

“We are now trying to understand the market and return on the business because large investment is needed in case we decide to do it,” he said. “We are at a phase where we have started analysing the business model.”

Both the companies are also studying the government’s incentives in terms of subsidy and viability of the project.

According to company officials, areas like nuclear power instrumentation, railways, homeland security and solar energy have been identified as new growth engines for Bharat Electronics.

Datt said Bharat Electronics is planning to generate an additional business of INR5 billion annually from these new business lines.

Bharat Electronics is also planning to make an investment in the region of INR3 billion – INR5 billion, as the company already has enough infrastructure in place.

Some factories would take extra load as the company is in the process of restructuring its businesses.