- The Indian government plans to collaborate with the private sector to develop small modular reactors (SMRs), emphasizing nuclear energy’s vital role in India’s future energy mix as part of the Viksit Bharat initiative.
- The 2024-25 budget allocates INR 24,969 crore (USD 2.983 billion) to the Department of Atomic Energy and includes research and development funding for nuclear technologies, rooftop solar installations, and other renewable energy projects.
- India is exploring ways to involve private firms in its nuclear expansion, with plans to invest USD 26 billion in new nuclear capacity by 2040, aiming to add 11,000 MWe to its current nuclear infrastructure.
At the Indian 2024-25 budget announcement, the Indian government revealed plans to collaborate with the private sector on the development of small modular reactors, highlighting a significant role for nuclear energy in the country’s future energy mix.
Finance Minister Nirmala Sitharaman delivered the budget to Parliament , who emphasized that nuclear energy is expected to play a “very significant” role in the energy mix for Viksit Bharat, the government’s initiative to transform India into a fully developed nation by 2047.
As the first budget since Prime Minister Narendra Modi’s re-election for a third consecutive term earlier this year, it outlines a comprehensive plan for achieving the government’s development objectives. This plan aligns with the strategy detailed in the interim budget presented in February. Energy security is one of the nine key priorities identified in the interim budget for realizing the Viksit Bharat vision.
“Towards that pursuit, our government will partner with the private sector for (1) setting up Bharat Small Reactors, (2) research & development of Bharat Small Modular Reactor, and (3) research & development of newer technologies for nuclear energy,” Sitharaman said in her budget speech. “The R&D funding announced in the interim budget will be made available for this sector.”
The budget allocates INR 24,969 crore (approximately USD 2.983 billion) to the Department of Atomic Energy (with 1 crore equal to 10 million).
Finance Minister Sitharaman announced that the government plans to release a policy document outlining “appropriate” energy transition pathways that balance employment, growth, and environmental sustainability. Alongside its commitment to nuclear energy, the budget includes significant projects for rooftop solar installations and a policy to promote pumped storage projects, aimed at integrating the increasing share of renewable energy. Additionally, the government will support the development of a full-scale 800 MWe commercial Advanced Ultra Super Critical thermal power plant and will formulate a roadmap to guide ‘hard to abate’ industries toward emission reduction targets.
India currently operates 23 nuclear reactors with a total generating capacity of about 7,425 MWe and has seven more units under construction, which include both Indian-designed and Russian-designed reactors, as well as a fast breeder reactor. The country also plans to develop a fleet of 700 MWe pressurized heavy water reactors designed and built in India, alongside large reactors from international vendors, including additional Russian-designed VVER reactors at Kudankulam in Tamil Nadu.
Recently, India has shifted its focus to small modular reactors (SMRs). In August 2023, Minister of State Jitendra Singh informed Parliament that the government is exploring SMR options and considering how to include private sector firms and start-ups in these projects.
The Atomic Energy Act of 1962 restricts private control over nuclear power generation, allowing only two government-owned entities—NPCIL and Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI), which was established to build and operate fast reactors—to own and operate nuclear power plants in India. However, discussions about involving additional public sector and private companies in the country’s future nuclear expansion have been ongoing.
Earlier this year, government sources said India was planning to invite private firms to invest some 26 billion USD in its nuclear energy sector, and holding talks with several private firms to secure investments to support the construction of some 11,000 MWe of new nuclear capability by 2040.
Earlier this year, government sources revealed that India plans to invite private companies to invest approximately USD 26 billion in its nuclear energy sector. The government is in discussions with several private firms to secure investments aimed at developing around 11,000 MWe of new nuclear capacity by 2040.
