With a strong financial backing, the country is poised to make nuclear power a cornerstone of its energy mix
As India continues its journey toward energy transition and sustainability, the role of nuclear power has become increasingly vital. The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, earmarked Rs 20,000 crore for the Nuclear Energy Mission, aiming to significantly enhance India’s nuclear energy capacity. This ambitious initiative is set to propel India towards achieving at least 100 GW of nuclear energy capacity by 2047, a significant leap from the current 8 GW. Presently, nuclear energy constitutes less than 2 per cent of India’s total energy mix. With an installed capacity of 8 GW, India’s nuclear sector lags behind other energy sources, such as coal, solar and wind. The Modi government is prioritising nuclear power as a stable and clean energy source. The July 2024 Budget had already set the stage for nuclear expansion by highlighting the need to amend the Atomic Energy Act of 1962 to allow private sector participation in nuclear power generation. The 2025-26 Budget builds upon this foundation by reinforcing the push for small modular reactors (SMRs). India’s ambitious renewable energy targets include achieving 500 GW of non-fossil fuel energy capacity by 2030. While solar and wind energy play a crucial role in this mix, they are subject to weather conditions and require large-scale energy storage solutions. Nuclear energy, on the other hand, provides continuous, low-carbon power without the intermittency issues of renewables. SMRs, with a capacity of up to 300 MW, offer distinct advantages over conventional nuclear reactors. Their modular design allows for quicker assembly, reduced costs and enhanced safety features. By promoting indigenously developed SMRs, India aims to increase its self-reliance in nuclear technology and reduce dependency on foreign nations. The allocation of Rs 20,000 crore under the Nuclear Energy Mission signals a clear intent to boost nuclear power generation. This funding will support research and development in indigenous nuclear technologies, particularly SMRs. Infrastructure development will be a key focus, with plans to set up at least five SMRs by 2033 as part of a long-term nuclear expansion plan. Despite its benefits, nuclear energy in India faces several challenges. Regulatory barriers exist due to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, which currently limit private sector involvement and require amendments. Public concerns on safety remain a significant issue, as nuclear accidents worldwide have created scepticism, necessitating stringent safety protocols. Technological monopolies present another challenge, as nuclear technology is concentrated among a few global players, making domestic capacity-building initiatives essential. But a push for nuclear energy is the need of the hours. It will reduce country’s carbon footprint, enhance energy security, and meet its growing electricity demands sustainably.
