The Union Budget 2025 has introduced a transformative policy shift in India’s nuclear energy sector. Finance Minister Nirmala Sitharaman announced plans to open nuclear power generation to private investment, signalling a major step towards strengthening India’s energy security and sustainability. This move aligns with India’s long-term goal of achieving net-zero carbon emissions by 2070 and reflects the growing recognition of nuclear energy as a crucial component of the country’s clean energy transition.
KEY ANNOUNCEMENTS
A major highlight of this year’s budget is the proposal to develop Bharat Small Reactors, an initiative centered on Small Modular Reactors (SMRs). These advanced reactors, designed for enhanced efficiency, safety, and scalability, have the potential to redefine India’s nuclear power infrastructure by enabling faster deployment and integration into diverse energy systems. To drive research, development, and deployment in this domain, the government has earmarked Rs 20,000 crores, reinforcing its commitment to technological progress in nuclear energy.
Recognising the critical role of policy reform in unlocking the full potential of nuclear energy, the government is considering amendments to the Atomic Energy Act, 1962, which currently limits nuclear power generation to state-owned entities. By enabling private sector participation, India aims to expedite the commercialisation of advanced nuclear technologies, attract domestic and international investments, and strengthen its nuclear supply chain.
This initiative is part of India’s ambitious goal to achieve 100 GW of installed nuclear power capacity by 2047, significantly expanding the current capacity and positioning nuclear energy as a key pillar in the nation’s long-term energy security and decarbonisation strategy.
NUCLEAR ENERGY & INDIA’S FUTURE
Nuclear energy is a highly efficient and reliable source of baseload power. Unlike renewable sources such as solar and wind, which are subject to variability, nuclear power provides a consistent and uninterrupted electricity supply. At present, India’s installed nuclear power capacity is approximately 8,180 MW, contributing around 3% of the total electricity generation. Expanding nuclear capacity through private sector involvement could significantly enhance the country’s ability to meet its growing energy demands while reducing dependence on fossil fuels.
POTENTIAL BENEFITS
Energy Security: Nuclear power can reduce reliance on imported coal and oil.
Economic Growth: Private investment could spur industrial growth and job creation.
Technological Advancement: R&D in SMRs and next-generation reactors will strengthen India’s scientific and engineering capabilities.
Environmental Sustainability: Increased nuclear power generation will support decarbonisation and mitigate climate change.
CHALLENGES AND CONSIDERATIONS
While this policy shift presents significant opportunities, several challenges must be addressed:
Regulatory Oversight: The inclusion of private sector entities in nuclear power generation requires the establishment of comprehensive regulatory frameworks that encompass safety protocols, emergency preparedness measures, and strict compliance with international nuclear safety standards to ensure operational reliability and public protection.
Public Perception: Addressing misconceptions and concerns regarding radiation risks, nuclear accidents, and radioactive waste management necessitates proactive public engagement, transparent risk communication, and scientifically informed awareness campaigns.
Waste Management: Developing scientifically sound, long-term strategies for the handling, storage, and disposal of radioactive waste—including deep geological repositories and advanced reprocessing technologies—is critical to ensuring the environmental and radiological safety of nuclear energy operations.
CONCLUSION
India’s decision to permit private sector participation in nuclear energy represents a significant shift in its energy policy, with the potential to enhance the country’s nuclear power capabilities. By integrating advanced reactor technologies, industry expertise, and a robust regulatory framework, this initiative aims to expand nuclear energy deployment while ensuring adherence to the highest safety and environmental standards. However, its success will be contingent on well-defined regulatory policies, stringent safety and emergency preparedness measures, and effective collaboration between public and private stakeholders. If executed with scientific rigour and strategic oversight, this reform could establish India as a global leader in nuclear energy innovation and accelerate its transition toward a low-carbon, energy-secure future.
*The writer is Director, Health, Safety and Environment, Bhabha Atomic Research Center, Mumbai.
