India's Nuclear Energy Expansion Plans
India's Union Budget for 2025-26 has set ambitious targets for nuclear energy, aiming to increase power generating capacity to 100 GW by 2047 from the current 8.18 GW. This is part of India's strategy to become a developed nation by 2047 and achieve "net zero emissions" by 2070.
Key Announcements and Goals
- Special allocation of ₹20,000 crore for developing "at least five indigenously designed and operational Small Modular Reactors (SMR) by 2033."
- Involvement of private players will be essential, necessitating changes in legislative, financial, and regulatory frameworks.
- Anticipated amendments to the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act (CLNDA), 2010, are underway.
Historical Context and Challenges
- India's journey in nuclear energy began in 1956 with the setup of the Apsara research reactor and further developments in the 1960s and 1970s.
- However, geopolitical challenges and exclusion from the global nuclear order hindered progress.
- India's nuclear power indigenisation included the development of the 220 MW Pressurised Heavy Water Reactor (PHWR), using natural uranium as fuel.
- Post-1998 nuclear tests, India gained acceptance as a responsible nuclear power, receiving a waiver from the Nuclear Suppliers Group (NSG).
Current Energy Landscape
India's electricity generation capacity is currently 480 GW, split equally between fossil fuels and renewables.
However, renewable energy provides only intermittent power, with coal-fired plants contributing 75% of total energy generation.
- India aims to meet climate commitments, requiring a shift from fossil fuels and increased reliance on nuclear power.
- The International Atomic Energy Agency (IAEA) and World Bank support nuclear energy for its role in reducing fossil fuel reliance and enhancing energy security.
Strategic Pathways for Nuclear Expansion
- Standardisation of PHWR Design: Implement Bharat Small Modular Reactors to replace current captive thermal plants.
- Scaling Up NPCIL Plans: Facilitate land acquisition and streamline processes for 700 MW PHWR units.
- International Collaborations: Accelerate negotiations with France and the U.S. for nuclear partnerships.
Regulatory and Financial Considerations
- Amendments to legislation are required to include private sector participation and address issues related to ownership, control, fuel supply, and waste management.
- The Atomic Energy Regulatory Board (AERB) needs to be established as an independent legal entity for effective safety oversight.
- Financial incentives such as tax benefits, green financing, and foreign direct investment (up to 49%) are necessary to attract private investment.
Private Sector Initiatives
NPCIL's joint ventures with NTPC and REC for nuclear projects in Rajasthan highlight the potential for public sector collaboration. However, foreign partnerships and private sector involvement are crucial for achieving the 100 GW target by 2047. Hence, the need for comprehensive reforms to make these nuclear energy goals a reality.