One such step in advancing India’s energy transition was suggested by Union Finance Minister Nirmala Sitharaman, with the opening of the nuclear power sector to private players during her presentation of the Union Budget for 2025-26. The government announced a Rs 20,000 crore Nuclear Energy Mission for research and development that will include establishing five small and modular reactors (SMRs) by 2033.
Reforms and Private Sector Participation
Sitharaman further emphasized that India needs at least 100 GW of nuclear energy by 2047. The government will, therefore amend both Atomic Energy Act and the Civil Liability for Nuclear Damage Act to open the nuclear energy area to the private sector. Here, the government lifted a ban on private investment in the sector thus far.
The Nuclear Energy Mission will reportedly be focused on Small Modular Reactors. The initial budgetary outlay is reported to be Rs 20,000 crore. The government has ambitious plans to operationalize at least five indigenously developed SMRs by 2033. This is indeed a big shift in nuclear energy strategy for India.
India’s Nuclear Energy Capacity Plans
India currently produces 8.1 GW of nuclear power through 24 atomic power plants, all operated by the Nuclear Power Corporation of India Limited (NPCIL). The plan is to bring this up to 20 GW by 2032 and build up its nuclear capacity to 22,480 MW by 2031-32.
Government Support for Nuclear Energy as Clean Power Source
Prime Minister Narendra Modi lauded the budgetary reforms as historic, since they encouraged private sector participation in nuclear energy. Former Atomic Energy Commission chairman, Anil Kakodkar, also welcomed the initiative, as he said nuclear energy was of prime importance to India for net-zero emission goals.
Science and Technology Minister Jitendra Singh reiterated the role of nuclear power in India’s strategy for greenhouse gas reduction by referring to it as a base-load source of clean electricity. It is going to play a crucial role in the long-term energy security of the country.
Future of Small Modular Reactors (SMRs)
SMRs is an emerging class of nuclear reactors that can be factory-built and assembled on-site. With more than 80 SMR designs globally in various stages of development, India’s interest in this technology is seen as a critical part of its energy diversification. Countries like Argentina, China, and Russia already have SMRs in advanced stages of construction, and India is exploring their potential to replace coal-fired captive power plants, particularly in energy-intensive industries like steel, aluminum, and cement.
This would make India’s effort to implement SMRs well aligned with global efforts toward scalable and safe nuclear solutions for the energy transition.
The bold steps of reform in the nuclear power sector, introduction of SMRs, and private sector participation are leading India toward greater capacity expansion in clean energy. Such developments would form a cornerstone for the country in meeting its ambitious energy and environmental goals.
