Redeeming India’s Nuclear Power Promise

Syllabus: Energy

Source:  TH

Context: The Union Budget 2025–26 set a bold target of achieving 100 GW nuclear power capacity by 2047. This comes alongside a ₹20,000 crore allocation for developing Small Modular Reactors (SMRs), highlighting nuclear energy as a key pillar for a developed and net-zero India.

About Redeeming India’s Nuclear Power Promise:

India’s Nuclear Power: From Apsara to 2047:

• Early Start and Isolation: India launched Asia’s first nuclear reactor (Apsara, 1956) and power plant (Tarapur, 1963), but post-1974 nuclear test and non-signature of NPT led to isolation and export bans.
• Self-Reliance in PHWRs: Indigenous development of 220 MW Pressurised Heavy Water Reactors (PHWRs) helped bypass dependency on enriched uranium.
• NSG Waiver & International Entry: Post-2008 Indo-U.S. civil nuclear deal and NSG waiver allowed India to import nuclear fuel and negotiate foreign reactor deals.

Why Nuclear Power Is Critical to India’s Growth?

1. Stable Base-load Supply: Unlike solar or wind, nuclear provides uninterrupted, 24×7 power crucial for industrialisation and urban expansion.
2. Low Carbon Emissions: Nuclear emits negligible greenhouse gases, helping India meet its COP26 pledge of net-zero by 2070.
3. Energy Security: Reduces dependency on fossil fuel imports, especially coal and oil, enhancing strategic autonomy.
4. High Energy Density: A small volume of nuclear fuel generates large energy output, making it land- and resource-efficient.
5. Scalability for Viksit Bharat: Essential for achieving the 100 GW target by 2047, supporting India’s $35 trillion economy goal.

Challenges Hindering Nuclear Expansion:

1. Restrictive Legal Architecture:
   • Atomic Energy Act, 1962 restricts nuclear operations to government entities.
   • CLNDA, 2010’s supplier liability clause deters foreign/private participation.
2. Regulatory Gaps: Atomic Energy Regulatory Board (AERB) lacks legal independence and previous reform Bill lapsed in 2011.
3. Financing Hurdles:
   • Capital cost of $2 million/MW for PHWRs vs. <$1 million/MW for coal.
   • Lack of green financing eligibility; limited PPP/JV frameworks.
4. Tariff and Jurisdictional Conflicts: NPCIL tariffs are notified under the Atomic Energy Act and legal disputes with DISCOMs show need for clearer regulatory authority.
5. Slow Negotiations with Foreign Partners: U.S. and France reactor projects have seen negligible progress over 15 years.

Way Forward:

1. Amend Atomic Energy and CLNDA Acts:

1. • Enable private and foreign JV participation.
   • Clearly define operator-supplier liability and ownership roles.

2. Independent Nuclear Regulator:

1. • Revive and pass the Nuclear Safety Regulatory Authority Bill.
   • Ensure transparency and accountability in project licensing and safety.

3. Green Financing and Incentives:

1. • Classify nuclear as low-carbon energy under “green” taxonomy.
   • Provide tax benefits, viability gap funding, and long-term PPAs.

4. Small Modular Reactor (SMR) Deployment:

1. • Standardize 220 MW PHWR design for modular application.
   • Target industrial captive markets replacing 100 GW thermal base.

5. Revive Foreign Partnerships and Fast-Track JVs:

1. • Accelerate talks with France (EPRs) and the U.S. (Westinghouse AP1000s).
   • Encourage strategic PSUs and large Indian corporates to join JVs (e.g., NTPC, Adani, Tata, Vedanta).

Conclusion:

India’s civil nuclear journey must now transition from cautious evolution to bold reform. With strategic, legislative, and financial restructuring, nuclear energy can be India’s backbone for green, secure, and inclusive growth. Achieving 100 GW by 2047 is not just an energy target — it’s a cornerstone of India’s aspiration for development and climate leadership.