Transforming India’s Nuclear Power Landscape

UPSC Syllabus: Gs Paper 3- Infrastructure

Introduction

India plans a major expansion of nuclear power from 8,180 MW to 100 GW by 2047. This shift is linked to Viksit Bharat 2047 and net-zero emissions by 2070. The SHANTI Act, 2025 replaces earlier laws and opens the sector to private participation. Nuclear energy is now seen as a key source for reliable and low-carbon electricity.

Current Status of Nuclear Energy in India

1. Limited share in energy mix: Nuclear capacity is about 8.8 GW and contributes only 3% of electricity generation, showing a very small role.
2. Electricity capacity distribution: Total capacity reached 476 GW in June 2025, with 50% non-fossil sources and 240 GW thermal power.
3. Generation imbalance: Thermal power produces 75% of electricity, while renewables with 50% capacity generate only 22%, and nuclear produces 57 TWh.
4. Indigenised technology base: India operates 24 reactors, mainly PHWRs, upgraded from 220 MW to 700 MW designs.
5. Low cost advantage: The 700 MW PHWR cost is $2 million per MW, among the lowest globally.

Why Nuclear Energy is Central to India’s Energy Transition

1. Rising electricity demand: Per capita electricity generation is 1,418 kWh, far below China (7,097 kWh) and USA (12,701 kWh).
2. Low electrification share: Per capita energy consumption is 7,893 kWh, but only one-fifth is electricity, showing future demand growth.
3. Net-zero requirement: Climate goals require moving away from fossil fuels to low-carbon sources.
4. Limitations of renewables: Renewable generation depends on climate, season, and geography, and needs large storage investments.
5. Land intensity issue: Solar and wind require 10 times more land compared to thermal plants.
6. Need for baseload power: Nuclear is a stable and low-carbon source, suitable for large-scale energy needs.

Initiative Taken

1. Policy push for nuclear expansion: The government set a target of 100 GW nuclear capacity by 2047, linking nuclear energy with Viksit Bharat and net-zero goals.
2. Legal transformation of the sector: The SHANTI Act, 2025 replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act (CLNDA), 2010, and allows private and foreign participation.
3. Financial support and investment push: Expansion requires over $200 billion investment, and reforms aim to attract both domestic and foreign private capital.
4. Institutional strengthening and regulatory reform: The Atomic Energy Regulatory Board (AERB) is given statutory status, and the framework attempts separation between civilian and strategic nuclear activities.
5. Technological development and innovation: ₹20,000 crore is allocated for indigenous Small Modular Reactors (SMRs) (5 MW, 55 MW, 200 MW), along with focus on Pressurised Heavy Water Reactor (PHWR) scaling and advanced reactor research.
6. Operational expansion and deployment strategy: Approval for 10 PHWR reactors (700 MW each) under fleet mode, promotion of modular construction, and use of nuclear power for captive industrial needs.

What are the Challenges for Nuclear Expansion

1. Huge investment requirement: Expanding capacity by 90 GW needs over $200 billion (₹18 lakh crore).
2. Project delays: Approved projects like fleet mode reactors have not yet started construction.
3. High cost of imported designs: Foreign reactors may cost over $5 million per MW, making them expensive.
4. Slow international collaboration: Projects at Jaitapur, Mithi Virdi and Kovvada remain delayed for over a decade.
5. Financing complexity: Nuclear power has high upfront cost but low operating cost over 60 years, requiring new financial models.
6. Regulatory gaps: Issues like tariffs, fuel ownership, waste management, insurance, and dispute resolution remain unclear.
7. Institutional limitations: AERB lacks full independence and needs stronger regulatory authority.

Way Forward

1. Indigenisation of technology: Foreign reactor designs need adaptation to reduce cost and improve efficiency.
2. Expand PHWR deployment: The 220 MW PHWR model can be modularised and used widely.
3. Promote SMRs: Small reactors can replace fossil-fuel based captive power plants (90 GW capacity).
4. Industrial adoption: Sectors like steel, cement, petrochemicals, and data centres show growing interest.
5. Strengthen R&D: Focus on molten-salt reactors and thorium-based fuel with HALEU (High Assay Low Enriched Uranium).
6. Reform regulations: Clear rules needed for civilian and strategic separation, tariffs, and safety.
7. Flexible site norms: Modify exclusion zone rules for small and single-unit reactors.

Conclusion

India’s nuclear expansion depends on effective implementation of reforms and strong regulatory clarity. The SHANTI Act creates a new framework, but success needs investment, technology and policy support. Nuclear power can ensure reliable and clean energy, support economic growth, and reduce dependence on fossil fuels if execution remains timely and consistent.

Question for practice:

Discuss the need for expanding nuclear power in India and examine how the SHANTI Act, 2025 aims to transform India’s nuclear energy landscape along with its key challenges and way forward.

Source: The Hindu