• India
  • Feb 04
  • Sreesha V.M

Govt announces Nuclear Energy Mission with an outlay of Rs 20,000 crore

• In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced that a Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of Rs 20,000 crore will be set up. At least five indigenously developed SMRs will be operationalised by 2033.

• The Budget outlines a significant push towards nuclear energy as part of India’s long-term energy transition strategy. The government has set an ambitious target of 100 GW nuclear power capacity by 2047, positioning nuclear energy as a major pillar in India’s energy mix.

• The strategy includes significant policy changes and investments in infrastructure, with a focus on indigenous technology and public-private collaborations.

Nuclear Energy Mission 

• As a key component of energy security and sustainability, the government has launched the Nuclear Energy Mission for Viksit Bharat. 

• This Mission seeks to enhance domestic nuclear capabilities, encourage private sector involvement, and accelerate the development of advanced technologies like Small Modular Reactors (SMRs).

• To implement this mission effectively, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be proposed in Parliament, making it easier to attract private investment in nuclear energy projects.

• These amendments are expected to foster investment and innovation in the nuclear sector, helping India meet its target of 100 GW of nuclear energy by 2047 and reducing carbon emissions. India’s current nuclear capacity stands at 8,180 MW as of January 2025.

SMRs in India’s Energy Transition

• India is keen on integrating SMRs into its energy strategy to meet growing energy demands while achieving net-zero emissions.

• SMRs are advanced nuclear reactors with a power generation capacity ranging from less than 30 MWe to 300+ MWe, which 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 stabilising 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 experience with Pressurised Heavy Water Reactors (PHWRs) provides a solid foundation for developing indigenous SMR designs. 

• SMRs will help reduce land use and dependence on fossil fuels, assisting India in meeting its climate commitments under the Paris Agreement.

Bharat Small Reactors (BSRs)

• The government is also advancing the development of Bharat Small Reactors (BSRs), which are 220 MW Pressurized Heavy Water Reactors (PHWRs) with a proven safety record. 

• These reactors are being upgraded to reduce land requirements, making them suitable for deployment near industries like steel, aluminum, and metals, acting as captive power plants for decarbonisation.

• Private companies will provide land, cooling water, and capital, while the Nuclear Power Corporation of India (NPCIL) will handle design, quality assurance, and operations within the existing legal framework.

• This initiative contributes to India’s goal of generating 500 GW of non-fossil fuel-based power by 2030 and achieving 50 per cent renewable energy by 2030.

• Additionally, the Bhabha Atomic Research Centre (BARC) is developing SMRs for repurposing retiring coal plants and powering remote areas. 

• The Department of Atomic Energy (DAE) is also working on new nuclear reactor designs, including high-temperature gas-cooled reactors for hydrogen production and molten salt reactors utilizing India’s thorium resources.

Government Initiatives to Enhance Nuclear Capacity

• The government aims to increase India’s nuclear capacity from 8,180 MW to 22,480 MW by 2031-32. 

• This expansion includes building 10 new reactors, totaling 8,000 MW, in various states like Gujarat, Rajasthan, and Tamil Nadu. Additionally, pre-project activities have begun for 10 more reactors, with plans for completion by 2031-32.

• The government has accorded in-principle approval to set up a 6x1208 MW nuclear power plant in cooperation with the United States at Kovvada in Srikakulam district of Andhra Pradesh.

• The successful criticality of Rajasthan’s Atomic Power Project’s Unit-7 (RAPP-7) in September 2024 marked a significant achievement in India’s nuclear capabilities.

Safety Measures

• Safety remains a top priority in India’s nuclear program. Indian nuclear plants operate under strict safety protocols, with radiation levels well below global standards, ensuring safe and sustainable energy production.

Recent Developments in Nuclear Energy

• A new uranium deposit was discovered near the Jaduguda Mines, extending the mine’s life by over 50 years.

• Two indigenous 700 MWe PHWR units at Kakrapar, Gujarat, began commercial operation in FY 2023-24.

• India’s first Prototype Fast Breeder Reactor (PFBR) achieved significant milestones in 2024, including core loading and sodium purification.

• NPCIL and NTPC have signed a joint venture agreement, ASHVINI, to develop nuclear power plants, including the upcoming Mahi-Banswara project in Rajasthan.

The provisions for nuclear energy in the Union Budget 2025-26 represent a transformative step in India’s energy strategy. By promoting nuclear power as a sustainable and reliable energy source, the government aims to ensure long-term energy security and meet the nation’s economic and environmental goals. 

(The author is a trainer for Civil Services aspirants.)

Notes