Why in news?
The Union Budget 2025‑26 proposed an ambitious target of 100 GW of nuclear power capacity by 2047 and allocated ₹20,000 crore for developing Small Modular Reactors (SMRs). These announcements signal that nuclear energy is set to play a bigger role in India’s journey towards a net‑zero economy.
India’s nuclear journey
- Early start and isolation: India built Asia’s first research reactor, Apsara (1956), and its first nuclear power plant, Tarapur (1963). After the 1974 nuclear test and refusal to sign the Nuclear Non‑Proliferation Treaty (NPT), India faced international isolation and export bans.
- Self‑reliance through PHWRs: In response, India developed indigenous 220 MW Pressurised Heavy Water Reactors (PHWRs) that do not require imported enriched uranium, enabling domestic expansion.
- Opening up: The 2008 Indo–U.S. civil nuclear agreement and a waiver from the Nuclear Suppliers Group allowed India to import uranium and negotiate reactor deals with foreign partners.
Why nuclear power matters
- Stable base‑load supply: Unlike intermittent solar and wind power, nuclear plants generate steady electricity round the clock, supporting industrialisation and urbanisation.
- Low carbon emissions: Nuclear energy produces minimal greenhouse gases, helping India meet its 2070 net‑zero pledge.
- Energy security: Expanding nuclear capacity reduces dependence on imported fossil fuels and enhances strategic autonomy.
- High energy density: A small quantity of nuclear fuel yields a large amount of energy, making it land‑efficient.
- Scalability: To achieve the 100 GW target and support a projected $35 trillion economy, nuclear power will be a crucial component of the energy mix.
Challenges hindering expansion
- Restrictive laws: The Atomic Energy Act 1962 restricts nuclear operations to government entities, while the Civil Liability for Nuclear Damage Act 2010 places liability on suppliers, discouraging foreign and private participation.
- Regulatory gaps: The Atomic Energy Regulatory Board lacks statutory independence. A proposed Nuclear Safety Regulatory Authority Bill lapsed in 2011.
- Financing hurdles: Nuclear plants are capital‑intensive (around $2 million per MW). Limited access to green financing and lack of Public–Private Partnership models impede investment.
- Tariff and jurisdiction issues: Tariffs notified under the Atomic Energy Act and disputes with electricity distribution companies create uncertainty for investors.
- Slow foreign partnerships: Projects negotiated with the U.S. and France have seen little progress over more than a decade.
Way forward
- Amend laws: Reform the Atomic Energy Act and the Civil Liability Act to allow joint ventures with private and foreign partners while clarifying liability provisions.
- Independent regulator: Establish a statutory Nuclear Safety Regulatory Authority to ensure transparency and accountability.
- Green finance and incentives: Classify nuclear energy as a low‑carbon technology to access green bonds and offer tax breaks and viability gap funding.
- Deploy SMRs: Standardise 220 MW PHWR designs for modular small reactors that can replace ageing thermal plants and serve industrial clusters.
- Revive foreign collaborations: Fast‑track joint ventures with France’s European Pressurised Reactors and the U.S. AP1000 reactors, and encourage Indian public and private firms to participate.
With strategic reforms and investments, nuclear power can become the backbone of India’s clean‑energy future. Achieving 100 GW by 2047 is not merely an energy goal but a pillar of India’s vision of becoming a developed, climate‑responsible nation.