India’s Nuclear Energy Vision 2047

The Union Budget 2025–26 announced an ambitious plan to expand India's nuclear power capacity from 8.18 GW to 100 GW by 2047, with a special allocation of ?20,000 crore for Small Modular Reactors (SMRs) by 2033, aligning with the goals of Viksit Bharat by 2047 and net zero emissions by 2070.

India's Nuclear Energy Ambition: Aligning Energy Security with Climate Commitments

1. India's Nuclear Journey: Historical Context:

Early Leadership and Vision:

India was the first in Asia to commission a nuclear research reactor (Apsara, 1956) and began work on power reactors at Tarapur in 1963.

Dr. Homi Bhabha had projected 8 GW nuclear power by 1980, showcasing India's early nuclear ambition.

Global Isolation and Technological Bottlenecks:

• India’s refusal to sign the NPT and the 1974 PNE test led to global exclusion from nuclear trade, slowing down reactor development and fuel procurement.
• Target deadlines were missed (10 GW by 2000) due to sanctions and lack of foreign collaboration.

Indigenisation Efforts:

• India successfully developed 220 MW Pressurised Heavy Water Reactors (PHWRs) using natural uranium.
• These designs were later scaled to 540 MW and 700 MW, with operational plants at Kakrapar (2024) and others under construction.

2. Strategic Reorientation Post-2008 and Structural Hurdles

• Global Integration After NSG Waiver:
  • Post-1998 nuclear tests and the 2008 NSG waiver, India resumed nuclear fuel imports and reactor deals with countries like Russia, France, and the U.S.
  • Russia remains the only active external partner at Kudankulam due to pre-CLNDA agreements.
• Legislative Barriers: The CLNDA Roadblock:
  • The Civil Liability for Nuclear Damage Act (2010) imposed liability on suppliers, discouraging foreign participation.
  • India’s model still centers around state ownership (NPCIL) under the Atomic Energy Act, 1962, making private entry unviable without reform.
• Commercial and Regulatory Ambiguities:
  • Disputes over tariff regulation between NPCIL and distribution companies (e.g., Gujarat Urja Vikas Nigam) point to unresolved jurisdictional and policy conflicts.
  • The Atomic Energy Regulatory Board (AERB), not a statutory body, raises concerns over independent safety oversight—especially with private entry.

3. Pathway to 2047: Aligning Growth, Climate and Energy Security

• Growth-Driven Energy Demand:
  • India’s current per capita income of $2,800 must rise to $22,000 for Viksit Bharat 2047. This necessitates a five-fold increase in energy capacity, particularly from firm, non-intermittent sources.
  • Nuclear energy, with 50–60 years of plant life and base-load capability, is essential given the limitations of renewables (intermittency, storage costs).
• Policy Innovation and Technological Diversification:
  • The government is investing in indigenously designed Small Modular Reactors (SMRs) to replace ageing captive thermal units.
  • Expansion of 700 MW PHWR units and acceleration of delayed U.S. and French projects are key elements of future strategy.

Enabling Private Participation and Financial Reform:

• Amendments to Atomic Energy Act (1962) and CLNDA (2010) are proposed to attract private and foreign investment.
• Financial reforms include redefining nuclear energy as “green,” enabling access to green financing, viability gap funding, and foreign direct investment (FDI) up to 49%.

India’s commitment to scaling nuclear capacity to 100 GW by 2047 is both visionary and pragmatic. It strategically integrates climate commitments, energy security, and industrial growth.