Policy Update
Mohd Asif
Introduction
This budget for the financial year 2025-26 proposes a robust development to nuclear energy, suggesting it as one of the main factors that will drive India’s energy focus in the long term. Federal assistance for the construction of no less than five Small Modular Reactors (SMRs) is set to be provided and is expected to be operational by 2033. Additionally, the legislation aims to privatize some of the government’s controls within the nuclear sector in the hopes of gaining more industry inclusion. In a bid to reach a target of 100 GW of nuclear power by 2047, the government is retailing the use of home-grown technologies and Public-Private partnerships towards boosting energy independence and countering fossil dependency.
This initiative is bolstered by the Viksit Bharat Nuclear Energy Mission, which aims to enhance national nuclear skills and speed up the adoption of innovative nuclear technologies. Nuclear energy is predicted to support industrialization, metropolization, and economic development and diversification because of its reliability and low-carbon energy characteristics. The policy reduces dependence on imported fossil fuels, which exposes India to international hydrocarbon price volatility. This transition also addresses issues related to the long-term sustainability agenda, which India has committed to including achieving net-zero emissions by 2070.
Nuclear energy is exceptionally useful for reducing carbon emissions in steel, cement, and data centers, in addition to acting as a stable base load complementing renewable energy sources. India has always been a frontrunner in self-sufficient nuclear technology, especially in Pressurized Heavy Water Reactors (PHWRs) and Thorium-based Advanced Heavy Water Reactors (AHWRs). Moving forward, the country’s progress in small modular reactors (SMRs) and innovative fuel cycles is certainly going to be bolstered by the aforementioned allocation of ₹20,000 crore for nuclear R&D in the 2025 Union Budget. Further developing nuclear infrastructure will lead to economic growth, increase local spending through major projects like Kudankulam and Jaitapur, and create skilled job opportunities.
Nuclear power’s long lifespan and low fuel costs ensure economic viability. Policy shifts in private investment and liability laws boost competitiveness. SMRs may decentralize energy and aid desalination. Expanding nuclear research strengthens India’s energy security and green future.
Technological Advancements and Indigenous Capabilities
In the Union Budget 2025-26, a new program called the Nuclear Energy Mission was introduced, focusing on the R&D of Small Modular Reactors (SMRs). This is intended to bolster India’s nuclear prowess. To accomplish this goal, the government is looking to alter the Atomic Energy Act and the Civil Liability for Nuclear Damage Act which will allow more private participation in nuclear power projects, The amending of these two legislation is expected to cultivate creativity, and simplify project construction leading to a stronger infrastructure for the expansion of nuclear energy.
The achievement of the Nuclear Energy Mission will enable India to reach its milestone of 100 GW of operational nuclear energy capacity by 2047, the eminent goal that will help India reduce greenhouse emissions and mitigate the ever-growing energy demand. India’s current operational nuclear power capacity as of January 30 2025, is 8180 MW, and the government has set a lot of plans to maximize the growth. The Indian government is set to work alongside private investment for the following goals:
Setting up Bharat Small Reactors, Improving R&D of Bharat Small Modular Reactors, and Developing advanced nuclear systems to enhance sustainability.
Bharat small reactors
The government is advancing nuclear power through Bharat Small Reactors (BSRs) and private-sector partnerships. BSRs are 220 MW Pressurized Heavy Water Reactors (PHWRs) designed for industrial use, aiding decarbonization in steel and metal industries. Private players provide land, cooling water, and capital, while NPCIL oversees design, quality assurance, and operations.
This initiative aligns with India’s COP26 commitments to achieve 500 GW of non-fossil fuel energy by 2030. The Bhabha Atomic Research Centre (BARC) is also developing Small Modular Reactors (SMRs) for repurposing retired coal plants and powering remote areas. Additionally, the Department of Atomic Energy (DAE) is working on high-temperature gas-cooled reactors (HTGRs) for hydrogen production and molten salt reactors (MSRs) to utilize thorium. These efforts reinforce India’s commitment to nuclear energy expansion and carbon reduction, with private sector collaboration within the legal framework.
Bharat Small modular reactors
As part of its energy transition strategy which embraces net-zero emissions, as well as energy security, India is actively pursuing the development of Small Modular Reactors (SMRs). Highly advanced, their capacities range between 30 MWe and more than 300 MWe. They provide a highly scalable, flexible, and economic alternative for traditional large reactors. Their modular design allows for factory-based manufacturing which generates lower construction times and costs, enabling their construction to apply equally well to grid and remote locations.
Building on its considerable experience in Pressurized Heavy Water Reactors (PHWRs), India is working towards the development of indigenous SMR designs aimed squarely at tackling land constraints, lessening fossil fuel dependency, and enabling renewable energy integration. It further contributes towards India’s climate commitments under the Paris Agreement (2015) and enhances its role within the global clean energy transition.
Enhancing Nuclear Capacity and International Cooperation
As India’s nuclear power capacity will increase to try to meet burgeoning energy demands and environmental goals, it is projected to grow from 8,180 MW to 22,480 MW by 2031-32. This includes building ten reactors in various states, with another ten still in pre-project. The government has also approved a nuclear plant to be established in Andhra Pradesh in cooperation with the USA at 6 x 1208 MW. One of the most important milestones was achieved on September 19, 2024, when the RAPP-7 reactor in Rajasthan attained criticality; this certainly underlined India’s homegrown knowledge in nuclear technology. Stringent safety measures ensure radiation exposure remains well below global standards, reinforcing India’s commitment to a safe and sustainable nuclear energy future.
Current Status of Nuclear Energy in India
India’s nuclear energy sector has made significant strides. A vast new uranium deposit near the Jaduguda Mines has extended their lifespan by 50 years. Two indigenous 700 MWe PHWR units (KAPS-3 & 4) in Kakrapar, Gujarat, became operational in FY 2023-24. The Prototype Fast Breeder Reactor (PFBR 500 MWe) achieved key milestones in 2024, including sodium filling, pump commissioning, and core loading on March 4. NPCIL and NTPC formed ASHVINI to develop nuclear plants, including the proposed 4×700 MWe PHWR at Mahi-Banswara, Rajasthan.
Institutional Structure
Nuclear energy in India is planned and regulated within an organized institutional framework for effective policy-making, regulation, and operational efficiency. The Department of Atomic Energy (DAE) oversees the entire nuclear ecosystem, including research establishments like BARC (Bhabha Atomic Research Centre), which focuses on nuclear research and reactor development, and IGCAR (Indira Gandhi Centre for Atomic Research), which specializes in fast-breeder reactor technology.
The Nuclear Power Corporation of India Limited (NPCIL) is responsible for constructing and operating nuclear power plants, while Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI) develops fast-breeder reactors. The Atomic Energy Regulatory Board (AERB) ensures safety and compliance with nuclear regulations, and the Heavy Water Board (HWB) manages the production of heavy water, essential for PHWRs. Under the Nuclear Energy Mission and proposed legislative reforms, India aims to expand its nuclear power capacity to 100 GW by 2047, encouraging private sector participation and international collaboration.
Challenges
The growing nuclear energy aspirations of India face major challenges including land acquisition, public perception, and risk management; each will require strategic remedies. Advancing public confidence calls for transparency in community engagement programs. The introduction of passive safety systems, real-time monitoring, and preparedness frameworks shall thus enable mitigation of risk and compliance with global safety standards. Nuclear waste management remains a major concern.
India follows a closed fuel cycle, reprocessing spent fuel to develop fast-breeder reactors while also designing deep geological repositories for safe waste disposal. Improving research, innovation, and skills development is another major key that should include Bharat Small Modular Reactors (BSMR), advanced reactor technologies, and public-private partnerships within nuclear R&D. Collaboration with global institutions and increasing specialized nuclear engineering programs at IITs, IISc, and HBNI strengthen India’s expertise and workforce. Along with legislative reforms lying in the proposal that encourage private sector participation, these will further align with India’s aspiration of achieving 100 GW of nuclear capacity by 2047 and provide for a sustainable and self-reliant nuclear future.
Conclusion
India’s ambitious nuclear energy roadmap as enshrined in the Union Budget 2025-26 emphasizes its pledge towards self-reliance in energy, sustainability, and economic growth. This country hopes to achieve an ambitious goal of 100 GW of nuclear power by 2047, emphasizing the use of SMRs and BSRs while reducing carbon emissions and dependence on fossil fuels.
Legislative amendments and engaging the private sector are looked upon to accelerate this transition, enabling efficient project execution and creativity. India is positioned to emerge as a global leader in clean nuclear energy, with further reactor technology development, uranium discoveries branching out, and strategic collaborations, while reinforcing its position in the global energy transition and getting a more secure and more resolute future for its power supply. Besides, this version contributes to emphasizing the broader message that India’s nuclear energy strategy would want to give power.
Way Forward
Amend regulatory frameworks to attract private investment, streamline land acquisition with community engagement, and prioritize R&D in advanced reactors like AHWRs and BSMRs. Establishing nuclear technology hubs and fostering global collaborations will accelerate innovation. Expanding nuclear education at premier institutions will ensure a skilled workforce. Robust waste management and adherence to global safety standards will enhance sustainability and public trust. Integrating nuclear power into India’s clean energy transition through policy support, innovation, and partnerships will drive a self-sufficient nuclear future.
References
About the contributo: MOHD ASIF is a research intern at IMPRI. He studied peace and conflict studies at Jamia Millia Islamia, New Delhi.
Acknowledgment: The author would like to thank Dr. Arjun Kumar, who helped throughout this article and reviewed the same.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
Read more at IMPRI:
Export Promotion Mission 2025: Policy Update & Strategic Implementation
PM-SVANidhi 2020: Empowering Street Vendors for a Stronger Economy
