The Indian government has announced a significant investment in nuclear energy as part of the Union Budget 2025-26, allocating ₹20,000 crore for the development of Small Modular Reactors (SMRs). The initiative is part of a broader Nuclear Energy Mission aimed at expanding nuclear power capacity to 100 GW by 2047.
Investment in Small Modular Reactors and Bharat Small Reactors
The budget outlines plans to develop at least five indigenously designed and operational SMRs by 2033. The initiative includes research and development efforts to facilitate the deployment of SMRs, which have a power generation capacity ranging from less than 30 MWe to over 300 MWe. The modular nature of these reactors allows for factory-based manufacturing, reducing construction costs and timelines.
In addition to SMRs, the government is working on Bharat Small Reactors (BSRs), 220 MW Pressurized Heavy Water Reactors (PHWRs) intended for use near industries such as steel and aluminum production. Private sector participation is expected in providing land, cooling water, and capital, while the Nuclear Power Corporation of India Limited (NPCIL) will handle design, quality assurance, and operations.
Legislative Changes and Private Sector Participation
To encourage private investment in nuclear power, the government plans to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. These legislative changes are intended to create a regulatory framework that facilitates private sector participation while maintaining safety and operational oversight.
The initiative aligns with India’s commitment to achieving 500 GW of non-fossil fuel-based energy generation by 2030 and reducing carbon emissions in line with international climate agreements.
Expansion of Nuclear Capacity
India’s current nuclear power capacity stands at 8,180 MW, with plans to increase it to 22,480 MW by 2031-32. This expansion involves the construction and commissioning of ten reactors totaling 8,000 MW across Gujarat, Rajasthan, Tamil Nadu, Haryana, Karnataka, and Madhya Pradesh. Pre-project activities for an additional ten reactors have begun, with completion targeted by 2031-32.
Additionally, the government has given in-principle approval for a 7,248 MW nuclear power plant in Kovvada, Andhra Pradesh, in collaboration with the United States.
Recent Developments in India’s Nuclear Energy Sector
- The Rajasthan Atomic Power Project’s Unit-7 (RAPP-7) achieved criticality on September 19, 2024, marking a step forward in India’s domestic reactor development.
- Two units of the indigenous 700 MWe PHWR at Kakrapar, Gujarat, began commercial operations in FY 2023-24.
- A new uranium deposit was discovered at Jaduguda Mines, extending its operational life by over 50 years.
- India’s first Prototype Fast Breeder Reactor (PFBR) made progress, with primary sodium filling and core loading milestones achieved in 2024.
- NPCIL and NTPC have established a joint venture, ASHVINI, to develop nuclear power projects under the Atomic Energy Act framework.
Outlook for Nuclear Energy in India
The nuclear energy initiatives in the Union Budget 2025-26 underscore India’s commitment to expanding its nuclear power sector as part of a broader energy transition strategy. The planned investments and policy changes are expected to enhance domestic nuclear capabilities, integrate private sector participation, and support India’s long-term energy security and decarbonization goals.