The Union Budget 2025-26 has unveiled a major push for nuclear energy, placing it at the forefront of India’s long-term energy transition strategy. The government has set a target of 100 GW of nuclear power capacity by 2047, envisioning nuclear energy as a cornerstone of the nation’s energy mix. This initiative is closely tied to the Viksit Bharat vision, aiming to ensure energy reliability and reduce dependence on fossil fuels. This press release was issued on February 3, 2025.
Nuclear Energy Mission for Viksit Bharat
Recognizing nuclear power’s crucial role in energy security and sustainability, the government has launched the Nuclear Energy Mission for Viksit Bharat. This mission will focus on bolstering domestic nuclear capabilities, encouraging private sector participation, and accelerating the deployment of advanced nuclear technologies, including Small Modular Reactors (SMRs).
SMRs and R&D Investment
A key component of the budget is the allocation of ₹20,000 crore for research and development of SMRs. The goal is to have at least five indigenously designed and operational SMRs by 2033. SMRs, with their smaller size and modular design, offer a flexible and cost-effective alternative to traditional large nuclear reactors. They are seen as particularly suitable for complementing renewable energy sources and providing power to remote locations.
Legislative Support and Private Sector Partnerships
To facilitate the Nuclear Energy Mission, the government will propose amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. These legislative changes are intended to create a more favorable environment for private sector investment in nuclear power projects. The government plans to partner with private entities in several key areas:
- Setting up Bharat Small Reactors (BSRs)
- Research and development of Bharat Small Modular Reactors
- Research and development of newer nuclear energy technologies
Bharat Small Reactors (BSRs)
The government is actively developing BSRs, which are 220 MW Pressurized Heavy Water Reactors (PHWRs) with a proven safety record. These reactors are being redesigned to minimize land requirements, making them suitable for deployment near industrial facilities like steel, aluminum, and metal plants, serving as captive power sources to support decarbonization efforts. The model involves private companies providing land, cooling water, and capital, while the Nuclear Power Corporation of India Limited (NPCIL) oversees design, quality assurance, and operation and maintenance.
Other Nuclear Initiatives
Beyond BSRs, the Bhabha Atomic Research Centre (BARC) is developing SMRs for repurposing retiring coal plants and supplying power to remote areas. The Department of Atomic Energy (DAE) is also planning to introduce new reactor types, including high-temperature gas-cooled reactors for hydrogen co-generation and molten salt reactors to utilize India’s thorium reserves.
Progress and Recent Developments
India’s current nuclear capacity is 8180 MW (as of January 30, 2025). The government aims to increase this to 22,480 MW by 2031-32, with the construction of ten new reactors. Significant progress has been made, including the criticality of Rajasthan Atomic Power Project’s Unit-7 (RAPP-7), the start of commercial operation of the first two units of the indigenous 700 MWe PHWR at Kakrapar, and milestones achieved by the Prototype Fast Breeder Reactor (PFBR). A new uranium deposit has also been discovered near the Jaduguda Mines, potentially extending its lifespan by over 50 years. Furthermore, NPCIL and NTPC have formed a joint venture, ASHVINI, to develop nuclear power facilities.
The 2025-26 budget’s emphasis on nuclear power represents a major shift in India’s energy strategy. By promoting nuclear energy as a sustainable, scalable, and secure energy source, the government aims to strengthen energy security and achieve its long-term economic and environmental objectives. The Nuclear Energy Mission for Viksit Bharat is poised to accelerate nuclear power development, positioning India as a leader in advanced nuclear technology by 2047.
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