Nuclear power has become a very important element of India’s green agenda. The Union Budget 2025–26 brought into light this shift with a substantial allocation of Rs 20,000 crore for developing small modular reactors (SMRs). The government aims to operationalise at least five indigenously developed SMRs by 2033. This initiative reflects a broader strategy to enhance energy security and encourage technological innovation in the nuclear sector.
Government Initiatives
- The Government of India is amending the Atomic Energy Act and the Civil Liability for Nuclear Damage Act.
- These changes are designed to encourage private sector participation in nuclear energy.
- The target is to achieve 100 GW of nuclear energy capacity by 2047, increase from previous commitments.
- The government is also collaborating with private companies for research and development of new nuclear technologies.
Current Contribution and Future Potential
Nuclear energy currently contributes only 2.49% to India’s non-fossil fuel energy generation. However, the recent budget announcement is expected to accelerate the growth of nuclear power. Analysts believe that increasing the nuclear contribution to the energy mix is crucial for India’s transition to a low-carbon economy.
Private Sector Involvement
The Nuclear Power Corporation of India (NPCIL) is decentralising the nuclear power sector by inviting private investments. Major companies like Tata Power, Reliance Industries, L&T, Adani Group, and Vedanta are exploring opportunities in nuclear energy. This move is anticipated to enhance competition and innovation in the sector.
Global Context and Technological Shift
Globally, nations are revisiting nuclear power to meet net-zero targets. Small modular reactors are gaining popularity due to their safety and efficiency. Major tech companies like Google, Amazon, Microsoft, and Oracle are investing in nuclear energy to meet the rising electricity demands of data centres powered by artificial intelligence (AI).
Data Centres and Energy Demand
India is witnessing a surge in the establishment of data centres, driven by the increasing demand for AI and digital services. Currently, there are around 150 data centres in India, with more being developed. The government’s budget announcement is expected to catalyse further investments in nuclear energy to support this growth.
Challenges Ahead
Despite the push for nuclear energy, India faces challenges in scaling up its nuclear capacity. The government must maintain its support for technology and innovation. The successful integration of nuclear power into India’s energy mix will require overcoming regulatory, safety, and public perception hurdles.
Questions for UPSC:
- Examine the role of nuclear energy in India’s transition to a low-carbon economy.
- What are the implications of private sector participation in India’s nuclear power sector? Discuss with examples.
- Critically discuss the safety concerns associated with large modular reactors in the context of global nuclear energy trends.
- What are small modular reactors? How do they differ from traditional nuclear reactors in terms of safety and efficiency?
Answer Hints:
1. Examine the role of nuclear energy in India’s transition to a low-carbon economy.
- Nuclear energy contributes to reducing greenhouse gas emissions compared to fossil fuels.
- Current nuclear contribution is only 2.49% of non-fossil fuel energy generation in India.
- The government aims to reach 100 GW nuclear capacity by 2047 to enhance energy security.
- Investment in small modular reactors (SMRs) is expected to accelerate nuclear energy growth.
- Analysts believe nuclear energy is crucial for achieving India’s low-carbon goals and energy diversification.
2. What are the implications of private sector participation in India’s nuclear power sector? Discuss with examples.
- Decentralization of the nuclear sector can lead to increased competition and innovation.
- Major companies like Tata Power, Reliance Industries, and Adani Group are exploring nuclear investments.
- Private sector involvement can enhance R&D efforts and technological advancements in nuclear energy.
- Government amendments to the Atomic Energy Act facilitate easier entry for private players.
- Successful collaboration between public and private sectors can drive nuclear capacity expansion.
3. Critically discuss the safety concerns associated with large modular reactors in the context of global nuclear energy trends.
- Large modular reactors pose safety risks, including potential meltdowns and waste management issues.
- Global trends are shifting towards small modular reactors (SMRs) due to their perceived safety advantages.
- SMRs have simplified designs that reduce the complexity of safety systems compared to large reactors.
- Countries are increasingly adopting SMRs to meet net-zero targets while addressing safety concerns.
- Public perception of safety remains a critical factor influencing nuclear energy acceptance worldwide.
4. What are small modular reactors? How do they differ from traditional nuclear reactors in terms of safety and efficiency?
- Small modular reactors (SMRs) are compact, factory-built nuclear reactors designed for lower output.
- SMRs have enhanced safety features, including passive safety systems that operate without external power.
- Compared to traditional reactors, SMRs require less water for cooling and have smaller physical footprints.
- They can be deployed in remote areas, reducing the need for extensive infrastructure.
- SMRs are designed to be more efficient in fuel use and can be scaled up as demand increases.
