India’s nuclear sector has been mostly closed to competition for decades.
The dominant player Nuclear Power Corporation of India (NPCIL), not listed on the stock market, is a public sector undertaking (PSU).
Private commercial enterprise in this sector is limited to being suppliers of NPCIL or subcontractors of the PSUs executing NPCIL’s nuclear projects.
However, this situation is set to change completely.
We believe, the entire nuclear sector of India should be on the radar of investors.
Read on…
The SHANTI Act
The Sustainable Harnessing and Advancement of Nuclear Technology for India (SHANTI) Act, 2025, will user in a nuclear energy revolution in India.
This act repealed the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010. It also provided the legal framework for private companies to enter the sector in a big way. Private companies can now build, own, and operate nuclear power plants in India.
Now the Indian government will maintain sovereign control over the sector but the SHANTI Act has effectively carved out commercial activities for private firms.
Nuclear Energy Mission
The Indian government has announced the Nuclear Energy Mission with a long-term 100 GW nuclear energy capacity target for the year 2047.
Currently, nuclear energy constitutes about 3% of India’s total installed power capacity. The goal is to increase this to achieve a high national base load generation capacity and reduce carbon emissions.
A shorter term target is to increase the country’s operating nuclear capacity from the current 8.78 GW to 22.38 GW by 2032.
Small Modular Reactors
At the heart of India’s nuclear revolution is the Small Modular Reactors (SMR).
Union Budget 2025-26 allocated Rs 200 billion (bn) to the establishment of at least 5 SMRs by 2033. The projects include the Bharat SMR (200 MW) and a smaller 50 MW SMR.
Also in development is a 5 MW high temperature gas cooled reactor at BARC which will be dedicated to the production of hydrogen.
While large reactors will continue to play a major role in India’s energy security, it won’t be wrong to say that the SMRs are critical to the future of the sector.
These plans, if executed properly, will establish a large scale, homegrown nuclear ecosystem in India. This will go a long way in achieving the government’s goals of energy security, strategic objectives, base load generation capacity, decarbonisation, domestic technological capability, etc.
Should Investors Consider Uranium Stocks?
The first thing to understand here is that India is an importer of Uranium. The country has only modest Uranium resources. Imports form a large part of the fuel supply for India’s nuclear reactors.
While India does have a domestic uranium producer, Uranium Corporation of India, it is not listed. That means Indian investors cannot invest in a pure-play uranium miner.
However, there are some private companies that are in integral to the success of the government’s long-term plans for the sector. These companies have either partnered with global players for uranium-linked projects or are expanding their presence in India’s nuclear ecosystem.
The Price of Uranium
In the middle of all the bullishness about the sector, investors must not forget the basics: The price of Uranium itself.
As India is an importer of the fuel, the profitability of an India private company operating a nuclear reactor, will be heavily influenced by the price of the raw material.
Over the last few years, Uranium has been in an uptrend.
10 years ago, Uranium was in a downtrend but the price bottomed out in late 2016 at about US$ 18 per pound. Since then the price has been either flat or in an uptrend.
This is clearly visible in a long-term chart of uranium.
Uranium Price (US$/lbs) – 10 Years
Source: tradingeconomics
Conclusion
India’s renewed push towards nuclear energy underscores the strategic importance of uranium in the country’s long-term power mix.
However, translating this opportunity into investable outcomes is far from straightforward. Liberalising the uranium sector is easier said than done and comes with challenges.
Moving away from a state-controlled framework would require wide-ranging regulatory reforms, including amendments to mining laws, electricity regulations, and foreign investment norms.
Then there’s the issue of safety and security. Nuclear materials demand the highest levels of oversight. Ensuring safety, handling, and compliance standards is critical to prevent misuse.
That is why investors should always evaluate fundamentals, corporate governance, and valuations as key factors when conducting due diligence before making investment decisions.
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