K Abhinav Rao is a second-year master’s student at the Department of Geopolitics and International Relations at Manipal Academy of Higher Education (Institution of Eminence), Manipal, India.
India’s nuclear energy landscape is on the cusp of transformation as the private sector is set to venture into nuclear power production. On February 7, 2025, the Naveen Jindal Group of Companies announced its entry into the nuclear energy market by establishing a new company named Jindal Nuclear Power Private Limited. This development came in the wake of the FY-26 Union Budget presented by the finance minister Nirmala Sitharaman, which emphasized the role of nuclear power generation for “Viksit Bharat” with an ambitious roadmap to achieve 100 GW power generation capacity by 2047. Electricity consumption in India is expected to increase by 35 percent by 2035, with total electricity generation capacity reaching 1400 GW. Coal is set to retain its position in India’s energy mix for the coming decades, ensuring a smooth energy transition from high-carbon sources of energy to low-carbon sources of energy.
India’s pursuit of nuclear energy was pioneered by Dr. Homi Jehangir Bhabha. Under his leadership, the Tata Institute of Fundamental Research was set up with funds from the Sir Dorab Tata Trust in 1945. The Atomic Energy Act of 1948, later repealed by the Atomic Energy Act of 1962, paved the way for the establishment of the Atomic Energy Commission, which further led to the development of the Atomic Energy Establishment, Trombay (led by Dr Bhabha), and is now known as the “Bhabha Atomic Research Centre.” Under the President of India’s order, the Department of Atomic Energy was set up under the direct charge of the Prime Minister facilitating the direct oversight of the Prime Minister over the department underscoring its importance. With assistance from the UK and Canada, India’s initial research reactors achieved criticality by 1960, with India’s first nuclear power plant, the Tarapur Atomic Power Station, going critical in 1969. The peaceful nuclear explosion in 1974 led to international sanctions forcing India to develop indigenous capabilities. It took eight years longer for Unit 2 of the Rajasthan Atomic Power Station to go online after Unit 1, with India adding 6 more reactors by 1995 and a total of seven nuclear power plants under construction by 1998.
Table 1. List of operational nuclear power plants in India, 2024
Source: Compiled by the author with reference to the Nuclear Power Corporation of India
In the same year, India conducted underground nuclear tests, demonstrating its capabilities as a potent nuclear weapons state. This development led to difficulties accessing Uranium, the fuel necessary for the reactors. India’s rising power demands pushed India to look at large-capacity reactors from foreign vendors. The lack of uranium fuel and growing energy demand warranted international civil nuclear cooperation. The No First Use policy, negative security assurances, civilian control over the nuclear command, and non-proliferation measures, along with adherence to export control regimes, being the key pillars of India’s nuclear doctrine, played a key role in developing the country’s image as a responsible nuclear power. This paved the way for the India-U.S. joint statement in 2005, which recognized India as a “responsible nuclear power” with immense economic potential coupled with high energy requirements. Thereafter, the India–U.S. Civil Nuclear Cooperation agreement was signed in 2008, with India agreeing to separate military and civilian nuclear facilities, placing the latter under IAEA safeguards. In return, India was granted the Nuclear Supplier Group waiver, facilitating access to Uranium. A 20,000 MW of nuclear power generation by 2020 was expected as the agreement was signed, however, India’s operational nuclear power capacity in 2024 stood at 8,180 MW, less than half of the expected capacity, accounting for less than 3 percent of the total power generated in India.
Two aspects have contributed to the muted growth of India’s nuclear power generation capacity. The nuclear labiality clauses in India are considered to be one of the reasons. In the event of a mishap at a nuclear power plant, India’s Civil Liability for Nuclear Damage Act of 2010 holds not only the operator of the plant accountable but also the supplier liable in cases of substandard services and faulty equipment. This clause is linked to the devastating Bhopal Gas tragedy of 1984, which was a result of faulty parts installed in the plant. This law was enacted to address the safety concerns among the public but instead resulted in nuclear suppliers turning sceptic about the Indian nuclear energy market and hindered any private cooperation and partnership in the sector. This clause has delayed several projects in the country including the proposed Jaitapur nuclear project in Maharashtra. Second, is the exponential growth of the renewable energy sector, as the renewable energy capacity grew from 32 MWp (MegawattPeak) in 1992 to 100,000 MWp in 2021. The renewable energy sector benefits from private investments, policy backing, and financial incentives, attracting small players to contribute to the capacity growth due to reduced risk.
The intent to triple the capacity of nuclear power generation within a decade and reach 100 GW by 2047, presented in the union budget for FY-26, is instrumental to realize India’s aim to achieve net zero emissions by 2070. India’s newly announced “Nuclear Energy Mission,” with a budget allocation of ₹20,000 crore (US$2.32 billion), focuses on research and development with a target of operationalizing five indigenous SMRs by 2033. Under the mission, the government intends to open the nuclear energy markets for private players on a partnership basis. Small Modular Reactors (SMRs) have a maximum power generation capacity of 300 MW of electrical capacity, 33 percent when compared to the capacity of traditional nuclear reactors. SMRs are expected to revolutionize the adoption of nuclear energy as a source of electricity generation. As the name suggests, these reactors are small, prefabricated, and can be transported to the required location for assembly and installation with provisions for scalability according to demand. This development is a significant shift at the policy level as India is facilitating access to the nuclear energy sector, which has been predominantly state-led since its inception.
The Bharat Small Reactors are designed for captive industrial use, with the 220MW Pressurized Heavy Water Reactor as the first stage, followed by the Fast Breeder Reactor aligning with the three-stage nuclear program envisioned by Bhabha. It also ensures that the radioactive waste is minimized as spent fuel gets reused in further stages. While the Nuclear Power Corporation of India is entrusted with the responsibility for the design, manufacturing, operation, and safety of SMRs, private entities are responsible for land acquisition, capital, and cooling water. These SMRs are expected to gain momentum as they fit the requirements of steel and aluminium plants supporting the decarbonization goals. Tata Power and Jindal Nuclear have expressed interest in setting up Bharat Small Reactors to contribute to India’s nuclear power generation capacity. The Bharat Small Modular Reactors under development by the government are expected to ensure flexibility and scalability due to their modular factory-built design, reducing the costs and timelines of the project significantly. The SMRs are expected to serve in remote locations and aid the transition from coal to a cleaner source of energy by complementing renewables to stabilize the grid. The Parliamentary Consultative Committee on Power is set to conduct discussions on key aspects of the mission including tackling security concerns and threat perceptions owing to high-profile accidents from the past. The Government of India is set to propose amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, aiming to foster private sector involvement in a historically state-dominated sector. These amendments will also ensure international cooperation for SMRs, with the companies from the US and France expected to collaborate on nuclear reactors and SMRs.
India’s net-zero emissions target for 2070 has renewed the focus on nuclear energy. The shift from high-carbon sources of energy to low-carbon sources of energy will involve renewables, nuclear energy, and hydroenergy, the latter being feasible only in certain environments. While renewable energy sources such as solar and wind are growing along with lean and efficient battery technology for storage, their capacity to provide dispatchable power around the clock and accommodate sudden surges is questionable. In this aspect, nuclear energy can ensure reliability while maintaining the stability of the electrical grid by providing backups during unfavorable weather conditions or erratic power demand. Nuclear power is suitable for massive, sustained energy demands from industries. It is vital in the clean energy transition as it can power energy-intensive industries and has the potential to replace coal-fired power plants. Apart from having one of the lowest carbon footprints and being the second safest source of energy, nuclear energy uses fewer materials and less land compared to solar energy for the same unit of electricity produced. While the initial capital required to set up a nuclear power plant is significant, the electricity produced from the nuclear power plant in Tarapur costs 92 paise (U$0.01) per unit, and that from Kudankulam a little more than ₹3 (US$0.03) per unit.
While large reactors and SMRs are crucial for energy transition in line with emission reduction targets aimed at tackling global warming and climate change, they face challenges from the phenomenon of climate change. Power shutdowns in nuclear plants due to climate-linked events have rapidly increased from 0.2 outages per reactor in the 1990s to 1.5 outages per reactor between 2010 to 2019. While the majority of the outages are attributed to hurricanes and typhoons, ambient temperature increases rank second as a cause for power outages. The rise in ambient temperature promotes the growth of algae and other biological materials, which can cause clogging at intake valves affecting the functioning of the plants. High ambient temperature is linked to bringing down the efficiency of nuclear power plants. The countries that are betting on nuclear energy and SMR to increase electricity access have relatively high ambient temperatures, which is expected to increase further. Besides, natural catastrophes, like the tsunami that caused the accident at the Fukushima Daiichi nuclear power plant in 2011, have elevated concerns about the safety of nuclear power generation.
For a developing country like India, nuclear energy is vital as it is a viable and reliable low-carbon energy source to fuel economic growth while ensuring environmental sustainability. As economic growth and commercial interests take prominence, maintaining stringent safety protocols and adhering to international guidelines is essential. Therefore, the effective implementation of the proposed ‘nuclear energy mission’ could redefine India’s nuclear energy sector, enhancing energy security and sustainability.
Disclaimer: The views expressed in the article are personal.
