A Bill to amend the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, is likely to be approved by Parliament in the ongoing session. This follows Prime Minister Narendra Modi’s recent speech on the need to strengthen and safeguard the country’s long-term energy security and align the process squarely with the global CO2 reduction pathways.
Private participation is set to be allowed in the full value chain of nuclear power, a clean energy source that is still relatively untapped even in advanced economies, and grossly under-utilised in India. In fact, Budget FY26 unveiled a Nuclear Energy Mission for R&D in small modular reactors (SMRs) with an outlay of Rs 20,000 crore.
Importance of building SMRs and PWRs
Along with the development and operation of plants, and assimilation of advanced reactor technology, next-generation systems like SMRs and pressurised water reactors (PWRs) are critical for building a cost-effective and flexible domestic value chain. As for SMRs, India is simultaneously working on two fronts—incentivising a budding domestic start-up ecosystem and exploring alliances with foreign firms.
The wheels have started to turn. State-run NTPC is reportedly talking to three American companies and Russia’s Rosatom for indigenous PWRs. L&T too is looking to collaborate with Holtec. During the recent visit of Russian President Vladimir Putin to India, he reaffirmed the commitment to fuel-cycle support to Kudankulam plant; in fact just before the presidential visit, Rosatom started delivering highly advanced fuel for the initial loading meant for Unit 3 of the plant. A suitable site for a second Russia-supported nuclear power plant in India is to be identified soon. Among India’s private companies, Tata Power is scouting for lands to set up nuclear power plants.
All this is in sync with the ambitious plan to develop 100 gigawatts (Gw) of nuclear energy by 2047. But the target still appears challenging given that the country’s installed nuclear power strength is just 8.8 Gw or 2% of the total electricity generation capacity in place.
Capital influx required
Apart from technology constraints and the hurdles in the way of commercial exploitation of the requisite natural resources, the challenges include meeting the massive capital investment requirement of an estimated Rs 19 lakh crore. Since technology suppliers would look for ownership rights, the imminent legislative changes must also facilitate opening up of the sector in a graded manner.
The hard-bargained India-US “123 Agreement” for peaceful use of nuclear energy remained in limbo for an inexplicably long period. Thankfully, the 2008 pact now seems poised to yield results, with Washington removing three key Indian nuclear entities from its restricted list.
Public-private partnership has worked well for India in the space technology sector. This model could be emulated in civil nuclear power, which continues to be the preserve of state-owned Nuclear Power Corporation. State-run entities like BARC and Indian Rare Earths are yet to have the required synergies with the private sector.
In this background, the focus given to the building of local SMR technology is a sign of farsightedness. But technology strategy should be two-pronged. Instead of relying solely on the fusion segment, the conventional fission technology should also be explored with greater vigour.
Thorium fast-breeder reactors are a viable option for India given the rich deposits of the radioactive element on the southwest coast. Harnessing these will help develop a virtuous closed-loop nuclear fuel cycle, and explore the prospects of hybrid reactors, which China is already betting on.