The Union Budget 2025-26 introduces a significant push towards nuclear energy as part of India’s long-term energy transition strategy. The government has set an ambitious target of achieving 100 GW of nuclear power capacity by 2047, making nuclear energy a key component of India’s energy mix. This initiative aligns with the broader vision of Viksit Bharat, focusing on energy reliability and reducing dependence on fossil fuels. To achieve this goal, policy interventions and infrastructure investments are being undertaken, with a strong emphasis on indigenous nuclear technology and public-private collaborations.
The government has introduced the Nuclear Energy Mission for Viksit Bharat to enhance domestic nuclear capabilities, encourage private sector participation, and accelerate the deployment of advanced nuclear technologies, including Small Modular Reactors (SMRs). A key feature of the budget is the launch of a dedicated Nuclear Energy Mission focused on the research and development of SMRs. For this purpose, the government has allocated ₹20,000 crore, aiming to develop at least five indigenously designed and operational SMRs by 2033.
To facilitate the implementation of this mission, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up by the parliament. These amendments are expected to create a favorable environment for investment and innovation in the nuclear sector. The mission supports India’s goal of achieving 100 GW of nuclear energy capacity by 2047, which is critical for reducing carbon emissions and meeting future energy demands. As of January 30, 2025, India’s nuclear capacity stands at 8,180 MW.
The government will collaborate with the private sector to set up Bharat Small Reactors, develop Bharat Small Modular Reactors, and work on newer nuclear energy technologies. Bharat Small Reactors are 220 MW Pressurized Heavy Water Reactors (PHWRs) with a proven record of safety and performance. These reactors are being upgraded to reduce land requirements, making them suitable for deployment near industries such as steel, aluminum, and metals, serving as captive power plants to support decarbonization.
The strategy involves private entities providing land, cooling water, and capital, while the Nuclear Power Corporation of India Limited (NPCIL) will oversee design, quality assurance, operation, and maintenance within the existing legal framework. This initiative supports India’s commitment to achieving 500 GW of non-fossil fuel-based energy generation by 2030 and meeting 50% of its energy needs from renewable energy by 2030, as pledged at the COP26 Summit in Glasgow in 2021.
Alongside BSRs, the Bhabha Atomic Research Centre (BARC) is working on Small Modular Reactors for repurposing old coal-based power plants and providing electricity in remote areas. The Department of Atomic Energy (DAE) also plans to introduce new nuclear technologies such as high-temperature gas-cooled reactors for hydrogen co-generation and molten salt reactors that can utilize India’s vast thorium reserves.
India is actively expanding its nuclear power capacity to meet growing energy demands. The government has set a target to increase nuclear power capacity from 8,180 MW to 22,480 MW by 2031-32. This expansion includes ten new reactors across Gujarat, Rajasthan, Tamil Nadu, Haryana, Karnataka, and Madhya Pradesh, with additional reactors planned for future deployment. The government has also approved the setup of a 6 x 1,208 MW nuclear power plant in collaboration with the USA at Kovvada in Andhra Pradesh.
A major milestone was achieved on September 19, 2024, when the Rajasthan Atomic Power Project’s Unit-7 (RAPP-7) reached criticality, marking the start of a controlled fission chain reaction. This achievement highlights India’s growing expertise in building and operating indigenous nuclear reactors.
Safety remains a key priority in India’s nuclear energy strategy. All nuclear plants operate under strict safety protocols, and radiation levels remain well below international benchmarks. A significant uranium deposit has been discovered at the Jaduguda Mines, increasing the mine’s lifespan by over 50 years.
India’s Prototype Fast Breeder Reactor (PFBR 500 MWe) has also achieved several milestones, including sodium filling, purification, and reactor core loading. Additionally, NPCIL and NTPC have signed a joint venture named ASHVINI to develop nuclear power facilities. This joint venture will operate within the existing legal framework and will develop, own, and operate nuclear power plants, including the upcoming 4 x 700 MWe PHWR Mahi-Banswara Rajasthan Atomic Power Project.
The nuclear energy initiatives in the Union Budget 2025-26 mark a transformative shift in India’s energy landscape. By promoting nuclear energy as a sustainable and secure power source, the government aims to strengthen energy security and meet long-term environmental and economic goals. The Nuclear Energy Mission for Viksit Bharat is set to accelerate nuclear power development and position India as a global leader in advanced nuclear technology by 2047.
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