Why in news?

Six major private sector companies — Reliance Industries, Tata Power, Adani Power, Hindalco Industries, JSW Energy, and Jindal Steel & Power — have formally expressed interest in setting up small modular nuclear reactor (SMR) projects under the ‘Bharat Small Modular Reactors (BSMRs)’ initiative by Nuclear Power Corporation of India Ltd (NPCIL).

Around 16 sites across six states — Gujarat, Madhya Pradesh, Odisha, Andhra Pradesh, Jharkhand, and Chhattisgarh — have been identified for these projects. The SMRs will be built and operated under NPCIL’s supervision, with the public sector retaining operational control and ownership, while private firms receive beneficial rights over the generated electricity for captive use.

The private partners will fully finance the projects, including capital and lifecycle costs, and reimburse NPCIL for its role in project execution and decommissioning. In exchange, they will secure long-term, reliable power supply for their energy-intensive industrial operations.

What’s in Today’s Article?

• SMRs – The Future of Compact Nuclear Power
• Global Momentum and Technological Interest
• Nuclear Power for the AI and Data Revolution
• Commercial Viability and Ongoing Challenges
• India’s SMR Ambitions: A New Chapter in Nuclear Innovation
• India’s SMR Technology Mix: Balancing Innovation and Self-Reliance
• Legislative Reforms to Unlock India’s Nuclear Sector

SMRs – The Future of Compact Nuclear Power

• Small Modular Reactors (SMRs), typically ranging from 30 MWe to 300 MWe per unit, are emerging as a promising solution to make nuclear power commercially competitive amid growing delays in large-scale nuclear projects worldwide.
• With roughly one-third the capacity of conventional reactors, SMRs can still generate substantial low-carbon electricity, making them ideal for energy-intensive industries such as steel, aluminium, and cement.
• They also offer the flexibility to be installed at decommissioned thermal power plant sites, helping India reuse existing infrastructure while advancing its clean energy goals.

Global Momentum and Technological Interest

• The global SMR ecosystem is steadily expanding, with two operational projects so far:
  • Russia’s Akademik Lomonosov floating power unit (two 35 MWe modules, operational since May 2020) and
  • China’s HTR-PM demonstration project, grid-connected in December 2021 and commercially operational by December 2023.
• Leading international players such as Holtec International (USA), Rolls-Royce SMR (UK), NuScale’s VOYGR SMR, Westinghouse Electric’s AP300, and GE-Hitachi’s BWRX-300 are actively developing and marketing SMR technologies.

Nuclear Power for the AI and Data Revolution

• Globally, technology giants including Google and Microsoft are exploring nuclear power, including SMRs, to meet the massive and round-the-clock electricity demands of data centres driving the AI boom.
• While renewables remain their primary energy choice, intermittency issues—such as the lack of sunlight or wind—and insufficient grid-scale storage have limited scalability.
• SMRs, offering clean, reliable, and continuous power, could bridge this critical gap, complementing renewables in future power grids.

Commercial Viability and Ongoing Challenges

• Despite their potential, SMRs remain largely unproven commercially, with high costs, complex regulatory hurdles, and public concerns over nuclear safety posing challenges to widespread adoption.
• Questions persist over whether these compact reactors can achieve economies of scale or attract sustained private investment.
• Yet, India’s recent policy shift—allowing private participation under NPCIL supervision in its proposed ‘Bharat Small Modular Reactor (BSMR)’ initiative—signals a significant step toward harnessing SMRs’ promise while cautiously managing associated risks.

India’s SMR Ambitions: A New Chapter in Nuclear Innovation

• BSMR project marks India’s strategic move to enter the manufacturing and innovation value chain of small modular reactors (SMRs).
• India aims to leverage SMRs not only to advance its clean energy transition but also to position itself as a global technology leader, using nuclear innovation as a pillar of its foreign policy and industrial diplomacy.
• New Delhi envisions SMRs as a technology of promise capable of driving industrial decarbonisation while offering baseload power essential for grid stability.
• Technological Limitations and the PHWR Challenge
  • Despite India’s proven capability in building small 220 MWe Pressurised Heavy Water Reactors (PHWRs), its existing reactor technology is increasingly seen as outdated.
  • The PHWR design, based on natural uranium and heavy water, contrasts with the Pressurised Water Reactor (PWR) systems that now dominate global nuclear power.
    • These PWRs, which use light water as both coolant and moderator, have become the international standard for efficiency, safety, and scalability.
  • This technological gap underscores the need for India to upgrade its nuclear reactor designs to remain globally competitive and fully harness the promise of SMRs.

India’s SMR Technology Mix: Balancing Innovation and Self-Reliance

• To address its technological limitations and align with global standards, India is developing a diverse mix of small modular reactor (SMR) designs under the Bhabha Atomic Research Centre (BARC).
• The lineup includes three prototypes — the Bharat Small Modular Reactor (BSMR, 200 MWe), the Bharat Small Reactor (BSR, 220 MWe), and a smaller SMR-55 (55 MWe) unit.
  • The BSR continues India’s legacy of Pressurised Heavy Water Reactor (PHWR) technology.
  • However, both the BSMR and SMR-55 are based on Pressurised Water Reactor (PWR) or light-water designs, aligning India’s nuclear technology with the global mainstream.
• SMR in Union Budget 2025–26
  • A major announcement in the Union Budget 2025–26 was the launch of a Nuclear Energy Mission dedicated to advancing R&D of SMRs.
  • The government has earmarked ₹20,000 crore for this initiative, with the goal of developing and commissioning at least five indigenously designed SMRs by 2033.