Powering the Future: Unlocking India’s Nuclear Energy Revolution by 2047

The Hindu | 23-Jul-2025
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India has announced an ambitious goal of achieving 100 GW nuclear power capacity by 2047, up from its current 8.18 GW. With the nuclear sector being largely a public monopoly since inception, this shift demands a dramatic overhaul of India’s legal, financial, and regulatory frameworks. Central to the new plan are Small Modular Reactors (SMRs), domestic and foreign private participation, and structural reforms in the Atomic Energy Act and Civil Liability for Nuclear Damage Act. This article explores India’s nuclear journey, current roadblocks, the need for reform, and why nuclear energy is poised to become a critical pillar in India's energy transition toward “Viksit Bharat” and net-zero emissions by 2070.

The Nuclear Energy Pivot in Budget 2025–26

India’s 2025–26 Union Budget set a new course for its nuclear energy trajectory with two key announcements:

  • A 100 GW target by 2047 for nuclear power generation.

  • A ₹20,000 crore allocation under the Nuclear Energy Mission for developing five indigenously designed Small Modular Reactors (SMRs) by 2033.

This marks a strategic pivot in India's energy policy where nuclear power is being repositioned as a central solution to address both developmental aspirations and climate responsibilities.

A Long Road: From Tarapur to Target 2047

India's nuclear energy journey began early, with the establishment of the Apsara reactor in 1956 and power reactors at Tarapur in 1963. Dr. Homi Bhabha had envisioned 8 GW of nuclear power by 1980. However, geopolitical developments, especially India's 1974 Peaceful Nuclear Explosion and refusal to sign the Nuclear Non-Proliferation Treaty (NPT), led to sanctions and isolation from the global nuclear regime.

India’s nuclear program had to evolve independently, resulting in Pressurized Heavy Water Reactors (PHWRs), eventually scaled from 220 MW to 700 MW. International support resumed only after the 2008 Nuclear Suppliers Group (NSG) waiver, following India’s civil nuclear deal with the U.S.

Despite these breakthroughs, legal hurdles—especially the Civil Liability for Nuclear Damage Act (CLNDA), 2010—limited foreign participation. Currently, only Russia has managed to bypass this hurdle due to its earlier agreement for the Kudankulam plant.

The Climate-Energy Challenge: Why Nuclear Is Essential

India's development goals—moving from a $4 trillion to $35 trillion economy and raising per capita income from $2,800 to $22,000—demand a massive increase in electricity supply. Nuclear energy’s appeal lies in:

“High base load, low-carbon emissions, and long operational life.”

Currently, India’s electricity capacity of 480 GW is heavily fossil fuel-dependent. Renewable sources like solar and wind are intermittent and contributed only 240 TWh of the total 2030 TWh generated in 2024. Coal still accounts for 75% of electricity generation.

To meet COP26 climate goals—500 GW non-fossil capacity by 2030 and net-zero by 2070—India needs nuclear energy’s steady supply. The global resurgence of nuclear, evident in COP28’s “Declaration to Triple Nuclear Energy” and the IAEA–World Bank support for nuclear projects in developing nations, further underscores its importance.

Reforming the Nuclear Ecosystem: Legal, Financial, and Structural Shifts

1. Legal Reforms: Atomic Energy Act and CLNDA

  • Atomic Energy Act (1962) currently reserves nuclear operations exclusively for the government via NPCIL.

  • CLNDA (2010) assigns liability not just to the operator but also to the supplier—deterring foreign partners.

To attract private and foreign investment, India must amend both laws to:

  • Clarify and streamline liability provisions.

  • Allow joint ventures with private and foreign entities.

  • Define ownership and operational responsibilities, especially of the “nuclear island” of a plant.

2. Private Sector Participation and JV Models

Currently, joint ventures are only with public sector firms like NTPC (e.g., Mahi Banswara project). To meet the 100 GW target, India must:

  • Engage corporate giants like Tata, Adani, Ambani, and Vedanta.

  • Consider allowing up to 49% FDI with Indian control.

  • Establish clear legal and financial frameworks for investment, tariff setting, and fuel security.

3. Regulatory Overhaul: Making AERB Truly Independent

The Atomic Energy Regulatory Board (AERB) remains under the Department of Atomic Energy. An earlier 2011 Bill to make it autonomous lapsed. For credibility and safety—especially with private players—India must resurrect this bill to create an independent statutory nuclear regulator.

4. Financing and Green Incentives

Nuclear power needs massive upfront capital (approx. $2 million/MW), even if operational costs are low. To incentivize the sector:

  • Reclassify nuclear as “renewable” for green financing eligibility.

  • Offer long-term Power Purchase Agreements (PPAs).

  • Provide Viability Gap Funding (VGF) and tax incentives.

Small Modular Reactors: The Game Changer

SMRs are compact, scalable, and faster to deploy. The government plans to repurpose India’s standardized 220 MW PHWR design for SMRs, replacing 100 GW worth of polluting captive thermal plants in coming decades. SMRs may well be India’s leapfrog moment in nuclear tech.

A Way Forward

India’s nuclear roadmap is no longer just about energy—it intersects climate action, strategic autonomy, and economic ambition. With foundational reforms in law, regulation, and financing, nuclear energy can complement India’s renewable mix and unlock a low-carbon future.

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Summary

  • India aims to raise nuclear capacity to 100 GW by 2047, a major jump from the current 8.18 GW.

  • Small Modular Reactors (SMRs) are a key focus with ₹20,000 crore allocated for five prototypes by 2033.

  • Legal barriers like the Atomic Energy Act, 1962 and CLNDA, 2010 need amendment to allow private and foreign investment.

  • India’s electricity demand and net-zero goals necessitate a reliable, non-intermittent energy source—nuclear fits that gap.

  • Independent regulation, tariff reforms, and reclassification of nuclear energy for green finance are essential enablers.

MY NOTES (Login to use)

UPSC Study Guide

Prelims Focus Areas

  • India’s nuclear energy capacity and targets (100 GW by 2047)

  • Pressurized Heavy Water Reactors (PHWRs) vs Light Water Reactors (LWRs)

  • Civil Liability for Nuclear Damage Act (CLNDA), 2010 – key features

  • Role of NPCIL and Atomic Energy Regulatory Board (AERB)

  • COP28 Declaration to Triple Nuclear Energy

Mains Focus Areas

 

  • GS II / GS III (Governance, Environment, Energy):

    • “Discuss the challenges and opportunities in India’s nuclear energy sector in the context of its net-zero commitment.”

    • “How can Small Modular Reactors help India meet its climate and development goals?”

  • GS III (Economic Development):

    • “Examine the legal and financial reforms needed to attract private investment in nuclear energy in India.”

    • “Is nuclear power the most viable option for India’s base load requirements in the post-coal era?”

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