Why in news?

The Union Budget 2025–26 signals a major shift in India’s energy strategy by setting an ambitious target of 100 GW nuclear power capacity by 2047, a sharp rise from the current 8.18 GW. This aligns with the dual national goals of Viksit Bharat by 2047 and achieving net-zero emissions by 2070.

To advance this vision, the Nuclear Energy Mission has earmarked ₹20,000 crore to develop at least five indigenous Small Modular Reactors (SMRs) by 2033.

Achieving these goals will require private sector participation, which in turn demands reforms in the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. Beyond legal reforms, a broader mindset shift is essential to transition nuclear energy from a government-led domain to a public-private growth engine.

What’s in Today’s Article?

• India’s Nuclear Power Journey: A Tale of Early Promise, Isolation, and Gradual Progress
• Nuclear Power Key to India’s Green Development Goals
• Global Support for Nuclear Power
• Unlocking India’s Nuclear Future: Creating an Enabling Environment
• Conclusion

India’s Nuclear Power Journey: A Tale of Early Promise, Isolation, and Gradual Progress

• India’s nuclear programme began early, with the Apsara reactor established in 1956 and nuclear power development initiated at Tarapore in 1963.
• Homi Bhabha had envisioned 8 GW of nuclear power by 1980.
• However, geopolitical events such as the 1962 war with China, India’s refusal to join the Nuclear Non-Proliferation Treaty in 1968, and its 1974 Peaceful Nuclear Explosion led to international isolation and export restrictions.
• India focused on indigenising nuclear technology, eventually developing 220 MW Pressurised Heavy Water Reactors (PHWRs), which used natural uranium.
• Post-1998 nuclear tests and subsequent diplomatic engagement led to India being recognised as a responsible nuclear power.
• It culminated in a waiver from the Nuclear Suppliers Group (NSG), allowing renewed international cooperation.
• Despite this, India’s Civil Liability for Nuclear Damage Act (CLNDA) discouraged foreign participation in building new nuclear plants, leaving Russia as the only active partner under a pre-CLNDA agreement, constructing six VVER-1000 reactors at Kudankulam.

Nuclear Power Key to India’s Green Development Goals

• To achieve developed nation status by 2047, India must grow its per capita income from $2,800 to $22,000 and its GDP from $4 trillion to over $35 trillion.
• Since economic growth is closely linked with energy consumption, India’s electricity generation capacity — currently ~480 GW, split equally between fossil fuels and renewables — must grow fivefold.
• However, renewable energy sources like solar and wind are intermittent and currently contribute only a fraction of total electricity generation.
  • In 2024, despite comprising half the generation capacity, renewables generated just 240 TWh, while coal plants provided 75% of the total power.
• India’s climate commitments — including net zero emissions by 2070, 500 GW of non-fossil energy by 2030, and 50% energy demand met through renewables — restrict future dependence on fossil fuels.
• With renewables expected to meet only 20-25% of demand even with advanced storage solutions, nuclear energy emerges as a crucial alternative.

Unlocking India’s Nuclear Future: Creating an Enabling Environment

• To meet its ambitious target of 100 GW of nuclear power by 2047, India is focusing on multiple strategic and structural reforms.
• The government has outlined a three-pronged approach to scale nuclear capacity, attract private participation, and modernize its legal and regulatory framework.
• Three-Pronged Expansion Strategy
  • Standardising Small Modular Reactors (SMRs)
    • India plans to standardise the 220 MW Pressurised Heavy Water Reactor (PHWR) design for Bharat Small Modular Reactors, which can replace over 100 GW of aging captive thermal plants in the next 20 years.
    • This standardisation will cut costs and commissioning timelines.
  • Scaling 700 MW PHWR Projects
    • The Nuclear Power Corporation of India Ltd. (NPCIL) will expedite its 700 MW reactor projects by simplifying land acquisition, fast-tracking clearances, and strengthening domestic supply chains.
  • Reinvigorating Global Partnerships
    • Talks with France and the U.S. — long delayed — are set to be accelerated to bring in foreign expertise and advanced reactor technologies.
• Reforming Nuclear Legislation
  • Atomic Energy Act Overhaul
    • The 1962 Act, which reserves nuclear power exclusively for the government, must be amended to allow private sector participation.
    • Questions over ownership structure, operator responsibilities, and fuel supply assurance need to be addressed in consultation with key industry players.
  • CLNDA Amendments
    • The Civil Liability for Nuclear Damage Act, 2010, must be revised — especially the contentious liability clause — to reduce legal risks for suppliers and attract foreign investment.
  • Tariff Disputes and Regulation
    • Disputes like NPCIL vs Gujarat Urja Vikas Nigam raise questions about whether nuclear tariffs should follow the Electricity Act framework.
    • With private players entering, clear and predictable tariff-setting mechanisms are essential.
• Independent Nuclear Regulator Needed
• Although India has a strong safety record, the Atomic Energy Regulatory Board (AERB), currently under the Department of Atomic Energy, lacks full independence.
• The 2011 draft Bill to establish AERB as an autonomous statutory body must be revived, especially with private participation on the horizon.
• Incentivising Nuclear Investments
  • Reclassify as Renewable: Though low-carbon, nuclear is not officially labelled “renewable.” Reclassifying it would unlock tax benefits and access to green financing instruments.
  • Viability Gap Funding & PPAs: Long-term power purchase agreements and targeted funding support will make nuclear investments more attractive.
  • Foreign Direct Investment (FDI): The sector should be opened up to FDI — possibly up to 49% — to maintain Indian control while bringing in global capital.
• Public Sector JVs and the Road Ahead
  • Past attempts at reform have been slow. For example, a 2011 NPCIL-NTPC joint venture languished for years before being revived recently.
  • This JV will now construct four 700 MW units at Mahi Banswara, Rajasthan.
  • A similar venture with Rural Electrification Corporation (REC) is also under consideration. However, these remain government-led.

Conclusion

To achieve 100 GW by 2047, India must go beyond these efforts and aggressively pursue private and foreign collaboration. The time for half-measures is over — a comprehensive, forward-looking reform push is essential.