TRANSFORMING INDIA’S NUCLEAR POWER LANDSCAPE

TRANSFORMING INDIA’S NUCLEAR POWER LANDSCAPE

Why in the News?

  • In the Union Budget 2025–26, Finance Minister Nirmala Sitharaman announced a major expansion of India’s nuclear power capacity from 8,180 MW to 100 GW by 2047.
  • The announcement highlighted nuclear energy as a key pillar of India’s clean energy transition toward a pollution free environment and long-term energy security.
  • It was accompanied by signals of significant legislative reforms to open up and modernize the nuclear sector.
  • Subsequently, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill was introduced and swiftly passed in December 2025.
  • The Bill aims to enable private sector participation and accelerate nuclear energy development in India.

Key Features and Significance of the SHANTI Act (2025)

  • Marks a dramatic shift from the earlier regime where nuclear energy was exclusively controlled by the Department of Atomic Energy (DAE).
  • Opens the nuclear sector to private participation, allowing companies to build, own, and operate nuclear power plants.
  • Grants statutory status to the Atomic Energy Regulatory Board (AERB), strengthening the regulatory framework and environmental jurisprudence in the nuclear sector.
  • Introduces a revised liability regime incorporating the polluter pays principle to attract private as well as foreign investment in nuclear energy.
  • Repeals and replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act (CLNDA), 2010.
  • Aims to fundamentally transform India’s nuclear energy landscape and accelerate capacity expansion.

Implementation Challenges and Requirements

  • Achieving the ambitious target of 100 GW by 2047 requires robust on-ground implementation and streamlined environmental clearances.
  • Necessitates timely formulation and notification of detailed rules and regulations, including EIA notification procedures for nuclear projects.
  • Calls for alignment of institutional and regulatory mechanisms with the reform-oriented spirit of the SHANTI Act while ensuring environmental democracy.
  • Effective execution will be critical to translate legislative intent into tangible outcomes.

Drivers of Nuclear Energy Reforms in India

  • Two overarching national goals are driving the reforms: achieving Viksit Bharat by 2047 and attaining net-zero emissions by 2070.
  • Economic development leads to a transition in energy use—from traditional fuels (firewood, fossil fuels, coal) to electricity-based consumption.
  • The net-zero commitment necessitates a shift away from fossil fuel-based power towards renewable and low-carbon sources.

Energy Consumption Gap and Development Needs

  • India’s per capita electricity generation (1,418 kWh in 2024) remains significantly lower than China (7,097 kWh), the United States (12,701 kWh), and the OECD average (~8,000 kWh).
  • This highlights the substantial increase in electricity generation required to achieve Viksit Bharat.
  • Total per capita energy consumption stands at 7,893 kWh, indicating that only about one-fifth of energy use currently comes from electricity.

Current Energy Mix and Capacity Status (2025)

  • Total installed electricity capacity reached 476 GW, with nearly 50% from non-fossil fuel sources.
  • Renewable energy capacity stands at 227 GW, including solar, wind, hydropower, micro-hydel, and bioenergy.
  • Nuclear power contributes 8.8 GW, while thermal (mainly coal-based) dominates with 240 GW.
  • India targets 500 GW of renewable capacity by 2030.

Generation Trends and Structural Challenges

  • Total electricity generation in 2024–25 was 1,824 TWh.
  • Thermal power contributed ~75% of generation despite ~50% capacity share.
  • Renewables, with ~50% capacity, contributed only ~22% due to intermittency (time, weather, geography constraints).
  • Nuclear power provided ~3% of generation with just 1.8% capacity, reflecting its role in stable baseload supply.

Constraints in Renewable Expansion

  • Renewable energy faces intermittency challenges, requiring large-scale energy storage solutions.
  • Growth is slowing, with ~40 GW of projects stalled due to lack of power-purchase agreements.
  • This underscores the importance of nuclear energy as a reliable, low-carbon baseload alternative.

India’s Nuclear Power Journey and Future Options

Rising Energy Demand and Role of Nuclear Power

  • India may need to expand its electricity generation capacity to over 2,000 GW to achieve Viksit Bharat by 2047.
  • Renewable sources like solar and wind are highly land-intensive (nearly 10 times more than thermal plants), often requiring compliance with the Forest Conservation Act for land acquisition.
  • With coal incompatible with net-zero goals, nuclear power emerges as the most viable low-carbon baseload option.

Evolution of India’s Nuclear Programme

  • India’s first nuclear reactor began operations in 1969 at Tarapur.
  • The Nuclear Power Corporation of India Limited (NPCIL) currently operates 24 reactors with a total capacity of about 8,780 MW.
  • Reactor types include:

○        Boiling Water Reactors (BWR) at Tarapur

○        Russian VVER (Pressurised Water Reactors) at Kudankulam

○        Indigenous Pressurised Heavy Water Reactors (PHWRs)

  • Indigenous PHWR designs have evolved from 220 MW to 540 MW and 700 MW capacities.

Cost and Investment Requirements

  • India’s 700 MW PHWRs cost about $2 million per MW, among the lowest globally.
  • Expanding nuclear capacity by ~90 GW over two decades would require investments exceeding $200 billion (~₹18 lakh crore).
  • Such scale of funding necessitates private sector participation, both domestic and foreign.

Pending Projects and Expansion Challenges

  • Approval for 10 PHWRs (700 MW each) in fleet mode was granted in 2017, but implementation is yet to begin due to pending environmental clearance procedures.
  • Major proposed projects include:

○        Jaitapur (Maharashtra) with French EDF-designed reactors (1,650 MW each), located in the Coastal Regulation Zone

○        Mithi Virdi (Gujarat) and Kovvada (Andhra Pradesh) with US-based designs

  • These imported designs are costlier (over $5 million per MW) and remain untested in India, requiring comprehensive Environmental Impact Assessment.

Opportunities in Small Modular Reactors (SMRs)

  • The government has allocated ₹2.2 lakh crore for developing indigenous Small Modular Reactors (SMRs) of 5 MW, 55 MW, and 200 MW capacity by 2033.
  • SMRs can cater to industrial captive power demand, currently dominated by fossil fuels (~90 GW capacity).
  • Industries such as steel, cement, petrochemicals, paper, and data centres are potential adopters.

Scaling Up Efficiently

  • The 220 MW PHWR model remains a reliable and proven option (15 reactors operational).
  • With better project management, modular construction, and economies of scale, construction timelines can be reduced to ~40 months.
  • A mix of large reactors and SMRs, backed by policy support and private investment, is key to achieving nuclear expansion targets.

Three-Front Strategy for Achieving 100 GW Nuclear Capacity

  1. Indigenisation and Cost Reduction of Large Reactors

  • Imported reactor designs (EDF and Westinghouse) need to be indigenised to reduce high costs.
  • Building a domestic manufacturing and supply chain ecosystem is crucial, as demonstrated by China.
  • Indigenisation can significantly lower costs and enable faster, large-scale deployment of reactors.

  1. Strengthening R&D and Advanced Nuclear Technologies

  • The Department of Atomic Energy (DAE) should collaborate with leading institutions to accelerate R&D in Small Modular Reactors (SMRs).
  • Focus areas include advanced designs such as molten-salt reactors.
  • Research into thorium utilisation using HALEU fuel can provide an alternative to the breeder reactor route.
  • This is critical for early and efficient exploitation of India’s vast thorium reserves.

  1. Scaling Indigenous PHWRs and Industrial Applications

  • The indigenised 220 MW PHWR model can be modularised for wider deployment.
  • It can serve as a cost-effective replacement for fossil fuel-based captive power plants.
  • Several Indian private sector companies already possess capabilities in design, fabrication, and construction.

Key Policy and Implementation Enablers

  • A viable financing model is essential due to high upfront costs and long operational life (~60 years) of nuclear plants.
  • Existing exclusion zone norms must be rationalised, especially for single-unit captive reactors, while adhering to the precautionary principle.
  • Clear regulatory separation between strategic/defence and civilian nuclear activities must be established under the SHANTI framework, avoiding any ex post facto regulatory complications.
  • Transparent policies are needed on:

○        Tariff determination

○        Nuclear fuel ownership

○        Waste management

○        Insurance and liability

○        Dispute resolution mechanisms

○        Establishment of an autonomous and credible regulator

Source: https://www.thehindu.com/opinion/lead/transforming-indias-nuclear-power-landscape/article70827256.ece

Mains question

Discuss the role of nuclear energy in achieving India’s net-zero targets and Viksit Bharat by 2047, highlighting the significance of the SHANTI Act and key challenges in scaling nuclear capacity.