The Union Budget 2025-26 lays out a major push for nuclear energy as part of India’s long-term strategy to ensure energy security and transition to cleaner power sources. With an ambitious target of achieving 100 GW of nuclear power capacity by 2047, the government is positioning nuclear energy as a cornerstone of its energy mix. This initiative aligns with the broader objectives of Viksit Bharat, aiming to reduce dependence on fossil fuels while ensuring a stable and reliable power supply.
Recognizing nuclear power as a critical component for achieving energy security and sustainability, the government has introduced the Nuclear Energy Mission for Viksit Bharat. This initiative aims to enhance domestic nuclear capabilities, promote private sector participation, and accelerate the deployment of advanced nuclear technologies such as Small Modular Reactors (SMRs).
Small Modular Reactors (SMRs) and R&D Initiatives
A key highlight of the Union Budget 2025-26 is the launch of a Nuclear Energy Mission, which is focused on research and development (R&D) of Small Modular Reactors (SMRs). The government has allocated ₹20,000 crore for this initiative, aiming to develop at least five indigenously designed and operational SMRs by 2033.
Nuclear Energy Mission for Viksit Bharat
To facilitate the implementation of the Nuclear Energy Mission, amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act will be taken up by the parliament. These amendments are expected to encourage private sector investments in nuclear power projects.
These legislative changes are expected to create a more conducive environment for investment and innovation in the nuclear sector. The mission aligns with India’s commitment to achieving 100 GW of nuclear energy capacity by 2047, a milestone deemed essential for reducing carbon emissions and meeting future energy demands. As of January 30, 2025, India’s nuclear capacity is 8180 MW.
The government plans to collaborate with the private sector to advance nuclear energy initiatives. This partnership will focus on establishing Bharat Small Reactors, conducting research and development for Bharat Small Modular Reactors, and exploring newer technologies in the nuclear energy sector.
The government is actively expanding its nuclear energy sector by developing Bharat Small Reactors (BSRs) and exploring partnerships with the private sector. BSRs are 220 MW Pressurized Heavy Water Reactors (PHWRs) with a proven safety and performance record. These reactors are being upgraded to reduce land requirements, making them suitable for deployment near industries such as steel, aluminium, and metals, serving as captive power plants to aid in decarbonization efforts.
The plan involves private entities providing land, cooling water, and capital, while the Nuclear Power Corporation of India Limited (NPCIL) handles design, quality assurance, and operation and maintenance, all within the existing legal framework. This initiative aligns with India’s commitment to achieving 500 GW of non-fossil fuel-based energy generation by 2030 and meeting 50% of its energy requirements from renewable energy by 2030, as pledged at the COP26 Summit in Glasgow in 2021.
In addition to BSRs, the Bhabha Atomic Research Centre (BARC) is developing Small Modular Reactors (SMRs) for repurposing retiring coal-based power plants and meeting power needs in remote locations. The Department of Atomic Energy (DAE) also plans to introduce new nuclear reactors, including high-temperature gas-cooled reactors for hydrogen co-generation and molten salt reactors aimed at utilizing India’s abundant thorium resources.
This strategic move signifies India’s dedication to reducing carbon emissions and enhancing its civil nuclear energy program, with private sector participation playing a crucial role within the bounds of Indian laws and regulations.
Bharat Small Modular Reactors
India is actively exploring Small Modular Reactors (SMRs) as a crucial part of its energy transition strategy, aiming to achieve net-zero emissions while ensuring energy security. SMRs, are advanced nuclear reactors with a power generation capacity ranging from less than 30 MWe to 300+ MWe, provide a flexible, scalable, and cost-effective alternative to conventional large nuclear reactors. Given India’s growing energy demands and the need for reliable, low-carbon power, SMRs can play a transformative role in complementing renewable energy sources and stabilizing the grid. Their modular design allows for factory-based manufacturing, reducing construction timelines and costs, making them suitable for both on-grid and off-grid applications, including deployment in remote locations.
India’s expertise in Pressurized Heavy Water Reactors (PHWRs) provides a strong foundation for the development and deployment of indigenous SMR designs. By integrating SMRs into its energy mix, India can address land constraints, reduce dependence on fossil fuels, and enhance its ability to meet international climate commitments under the Paris Agreement (2015) which India ratified in October 2016.
Government Initiatives for Enhancing India’s Nuclear Capacity
India is actively expanding its nuclear power capacity to meet growing energy demands and achieve environmental goals. The government has initiated steps to increase nuclear power capacity from the current 8,180 MW to 22,480 MW by 2031-32. This expansion includes the construction and commissioning of ten reactors, totaling 8,000 MW, across Gujarat, Rajasthan, Tamil Nadu, Haryana, Karnataka, and Madhya Pradesh. Additionally, pre-project activities for ten more reactors have commenced, with plans for progressive completion by 2031-32. Furthermore, the government has granted in-principle approval to establish a 6 × 1,208 MW nuclear power plant in collaboration with the USA at Kovvada in the Srikakulam district of Andhra Pradesh.
A significant milestone was achieved on September 19, 2024, when the Rajasthan Atomic Power Project’s Unit-7 (RAPP-7), one of the country’s largest and third indigenous nuclear reactors, reached criticality, marking the beginning of controlled fission chain reaction. This event signifies India’s growing capability in building and operating indigenous nuclear reactors, contributing to a future powered by homegrown technology.
Safety remains a cornerstone of India’s nuclear energy policy. India’s nuclear power plants operate with stringent safety protocols and international oversight. The radiation levels at Indian nuclear facilities are consistently well below global benchmarks, underscoring the country’s commitment to secure and sustainable nuclear energy. These efforts align with India’s broader strategy to provide clean and reliable energy, contributing to long-term energy security and environmental sustainability.
Recent Developments in Nuclear Energy in India
A significant deposit has been discovered in India’s oldest uranium mine, the Jaduguda Mines, within and around the existing lease area. This discovery will extend the life of the otherwise depleting mine by more than fifty years.
First two units of the indigenous 700 MWe PHWR at Kakrapar, Gujarat (KAPS – 3 & 4) have started commercial operation in FY 2023-24.
The closed fuel cycle, being the cornerstone of India’s nuclear power program, saw a major advancement in 2024 with the country’s first Prototype Fast Breeder Reactor (PFBR 500 MWe) achieving several key milestones. These included the primary sodium filling in the main vessel, purification of the filled sodium, and the commissioning of all four sodium pumps (two primary sodium pumps and two secondary sodium pumps). Core loading commenced with the insertion of the first reactor control rod on March 4, 2024.
NPCIL and National Thermal Power Corporation (NTPC) have signed a supplementary Joint Venture agreement to develop nuclear power facilities in the country. The JV named ASHVINI will function within the existing legal framework of the Atomic Energy Act 1962 (amended in 2015) and will build, own, and operate nuclear power plants, including the upcoming 4×700 MWe PHWR Mahi-Banswara Rajasthan Atomic Power Project.
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