Nuclear energy’s import dilemma

Source: The post “Nuclear energy’s import dilemma” has been created based on “Nuclear energy’s import dilemma” published in “Business Line” on 17th July 2026.

UPSC Syllabus: GS-2- Governance

Context: India has around 8.8 GW of installed nuclear capacity, supplying about 3% of its electricity. The government aims to increase nuclear capacity to 100 GW by 2047 to reduce dependence on coal and support the net-zero target of 2070.

Challenges of Uranium Dependence

1. Achieving 100 GW of nuclear capacity would require around 18,000–20,000 tonnes of uranium annually.
2. Global uranium production was about 62,000 tonnes in 2025, meaning India could consume nearly one-third of current global production at the 100 GW level.
3. Although India has about 4.42 lakh tonnes of uranium reserves, most deposits are low-grade and expensive to extract and refine compared with imports.
4. Past uranium shortages reduced the Plant Load Factor (PLF) of Indian nuclear plants, which fell below 60% and reached around 34–40% in early 2009.
5. India’s uranium imports are relatively concentrated, particularly from Kazakhstan, Uzbekistan and Canada, creating supply and geopolitical risks.
6. Kazakhstan produces over 40% of global uranium output and holds around 14% of global uranium resources, making excessive dependence on it a strategic vulnerability.
7. Thus, uranium dependence could replace dependence on imported fossil fuels with dependence on imported nuclear fuel.

Thorium as a Long-Term Solution

1. India possesses around 25% of the world’s thorium reserves, making thorium important for long-term energy self-reliance.
2. Thorium is not naturally fissile and must be converted into U-233 through a reactor-based fuel cycle.
3. India’s three-stage nuclear programme aims to exploit this potential through fast breeder reactors.
4. The 500 MW Prototype Fast Breeder Reactor (PFBR) at Kalpakkam achieved first criticality in April 2026, marking an important milestone.
5. However, large-scale thorium utilisation remains constrained by the pace of building fast breeder reactors and achieving commercial maturity.

Way Forward

1. India should create a strategic uranium reserve to protect nuclear power generation from supply disruptions.
2. It should secure binding long-term uranium supply agreements with multiple countries to diversify sources.
3. India should acquire equity stakes in overseas uranium mines to gain greater control over supplies.
4. Funding for the fast-breeder and thorium programmes should be protected so that short-term nuclear expansion does not undermine long-term fuel independence.
5. India should strengthen R&D for cheaper alternatives to lithium-ion batteries and economical cellulosic ethanol to diversify its clean-energy options.
6. Nuclear energy should be integrated with solar, wind, hydro and other clean sources to create a diversified energy mix.

Conclusion: Nuclear power can play a crucial role in India’s energy security, clean-energy transition and Viksit Bharat 2047 goals. However, until the thorium-based fuel cycle becomes commercially viable, uranium security must receive strategic importance comparable to crude-oil security. A carefully sequenced transition can reduce both fossil-fuel dependence and long-term nuclear-fuel vulnerability.

Question: India’s expansion of nuclear power is essential for achieving its energy security and net-zero goals, but it may also create dependence on imported uranium. Discuss the challenges and suggest a way forward.

Source: Business Line