Nuclear energy is emerging as the cornerstone of India’s long-term energy strategy. The government has launched the Nuclear Energy Mission, setting a target of 100 GW of nuclear power capacity by 2047. Besides, it is focusing on promoting indigenous capacity development, attracting private and foreign investments, and accelerating the deployment of new technologies such as small modular reactors (SMRs) and Bharat Small Reactors (BSRs).
Given the rising demand for electricity, particularly carbon-free baseload power, and the country’s target for net-zero emissions by 2070, nuclear power is expected to play a critical role in ensuring a stable, sustainable and resilient energy future for the country. Nuclear energy provides reliable, carbon-free baseload power that complements the intermittent renewable energy sources to ensure grid stability. Its ability to generate consistent power without greenhouse gas emissions makes it essential for achieving India’s net-zero target by 2070.
To recall, under Union Budget 2025-26, the government announced the Nuclear Energy Mission for Viksit Bharat, setting a target of 100 GW of nuclear power capacity by 2047. The initiative aims to strengthen domestic nuclear capacity, encourage private sector participation and accelerate the adoption of advanced technologies such as SMRs. To support SMR research and development, the government has allocated Rs 200 billion to develop and operationalise at least five indigenously designed SMRs by 2033. Meanwhile, Nuclear Power Corporation of India Limited (NPCIL) has set a target of achieving over 50 GW of cumulative nuclear power capacity by 2047. It is actively identifying new greenfield sites for future projects, and also planning brownfield expansions at its existing nuclear facilities.
Current status
At present, India has 25 operational nuclear power plants with a total capacity of 8,880 MW. During 2024-25, nuclear power generation stood at 56 BUs, accounting for nearly 4 per cent of the total power generation. In addition, eight reactors, including a prototype fast breeder reactor (PFBR) by BHAVINI, with a total capacity of 6,600 MW, are under construction, while 10 reactors with a total capacity of 7,000 MW are at the pre-project activity stage. These are planned to be completed progressively by 2031-32, increasing the total nuclear power capacity to 22,480 MW. In line with the Nuclear Energy Mission’s target of achieving 100 GW of nuclear power capacity by 2047, more nuclear power plants are planned, beyond the 18 reactors currently under implementation (including a PFBR by BHAVINI).
India is also advancing its nuclear energy programme through the development of BSRs, which are 220 MW pressurised heavy water reactors (PHWRs), designed for deployment near industries to serve as captive power plants. These reactors are being optimised to reduce land use. Under this project, the private sector will contribute land, cooling water and capital, while NPCIL will handle the design and operation within current legal frameworks. In addition, India is investing in SMRs, which are compact, factory-built reactors, ranging from <30 MWe to 300+ MWe. SMRs offer a flexible, low-carbon solution for remote and off-grid areas and can repurpose retiring coal-based plants.
Reforms to encourage private participation
To facilitate the implementation of the Nuclear Energy Mission, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act are likely to be taken up in Parliament during the monsoon session. These amendments are expected to encourage private sector investment in nuclear power projects, and allow foreign companies to hold up to a 49 per cent stake in its nuclear power plants. They would also enable the government to issue licenses to private companies for building, owning and operating nuclear plants, as well as for mining and manufacturing atomic fuel. The proposed amendments are also likely to include a provision to cap compensation liabilities in the event of a nuclear accident, providing greater clarity and risk predictability for investors.
To recall, in 2008, India signed a civil nuclear agreement with the US with the aim of attracting investments from American companies. However, progress stalled after the introduction of India’s Civil Liability for Nuclear Damage Act in 2010, which imposed potentially unlimited liability on suppliers in the event of an accident. This legal framework, unlike global norms that typically require operators to bear the accident liability, deterred foreign firms from entering the Indian market. The proposed amendments are expected to give a fillip to foreign investments in the sector.
NPCIL’s first-ever RfP to set up BSRs for captive use
In February 2025, NPCIL issued a request for proposal (RfP), inviting Indian industries to set up 220 MWe BSRs for captive use. These compact, PHWRs are designed to provide a sustainable, low-carbon energy solution for hard-to-abate industries, enabling them to decarbonise their operations. The project will be implemented by private players under the supervision and control of NPCIL. Upon completion, the assets will be transferred to NPCIL and operated under a long-term comprehensive operations and maintenance agreement.
By leveraging BSR technology, industries can significantly reduce their carbon emissions. The reactors, with a capacity of 220 MW each, are tailored to meet the power needs of industrial units, reducing their dependence on conventional power sources and enhancing overall energy efficiency.
NTPC triples its nuclear target
Earlier this year, NTPC Limited revised its nuclear energy target to 30 GW over the next decade at an investment of $62 billion. The company had initially aimed for 10 GW of nuclear capacity but tripled the goal after the government’s announcement to open up the sector to foreign and private investment. Anushakti Vidhyut Nigam Limited, NTPC’s joint venture with NPCIL, is developing the 2.8 GW Mahi Banswara Rajasthan Atomic Power Project in Rajasthan. The company is also in the process of seeking early approvals for land in eight states to conduct detailed studies across 27 locations. The states include Gujarat, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh and Tamil Nadu.
In another development, in January 2025, NTPC set up NTPC Parmanu Urja Nigam Limited, with the aim of making investments in the nuclear power sector, including through partnerships. The company’s objective is to plan and execute an integrated programme for harnessing and developing nuclear energy for electricity generation or other purposes on a commercial basis. Reportedly, the company is in talks with foreign firms, including those from Russia and the US, to collaborate on the construction of small nuclear reactors.
Growing interest among private players
Following the expected shift in government policy to allow private participation in the sector, significant private sector investment is anticipated in India’s nuclear energy landscape. Recently, the Naveen Jindal Group established Jindal Nuclear Power Private Limited, a wholly owned subsidiary of Jindal Renewables, for the development of nuclear energy projects. Jindal Nuclear plans to develop 18 GW of nuclear power capacity over the next two decades, with an estimated investment of Rs 1.8 trillion. The company plans to build, own and operate advanced nuclear power plants utilising technologies such as BSRs, SMRs and Gen-IV reactors.
Additionally, prominent Indian conglomerates such as Reliance Industries, Tata Power, Adani Power and Vedanta Limited are in discussions with the government to invest approximately $5.3 billion each, totalling around $26 billion. The plan involves these companies investing in nuclear plants, acquiring land and water resources, and undertaking construction activities outside the reactor complex. However, the operation and fuel management of the reactors will remain under the purview of NPCIL.
Apart from this, in April 2025, Megha Engineering and Infrastructures Limited (MEIL) marked its foray into the nuclear energy sector. The company has received the formal purchase order or letter of approval for a Rs 128 billion engineering, procurement and construction contract from NPCIL for the construction of two 700 MWe nuclear reactors – Kaiga Units 5 and 6 – in Karnataka. Notably, this is the biggest order ever placed by NPCIL and marks MEIL’s entry into the nuclear energy sector. For the first time, NPCIL has deployed the quality-cum-cost-based selection method for awarding the project.
Growing foreign collaborations
India-US: In a breakthrough for India-US nuclear cooperation, the US Department of Energy has granted Holtec International authorisation to transfer unclassified SMR technology to three Indian companies – Larsen & Tubro Limited, Tata Consulting Engineers Limited and Holtec Asia (its regional subsidiary). This will allow a US company to build and design nuclear reactors in India. The latest authorisation is valid for 10 years from the date of issuance, subject to review at five-year intervals. The approval is expected to give a fillip to the India-US civil nuclear partnership.
India’s existing nuclear programme is primarily based on PHWRs, which use natural uranium and heavy water as moderators. Holtec’s expertise in SMRs will help India align its nuclear sector with global trends while scaling up its nuclear power generation capacity. A proposal to include state-owned entities such as NPCIL, NTPC Limited and the Atomic Energy Regulatory Board in this agreement has been kept on hold due to the lack of requisite non-proliferation assurance by the Indian government. In due course, Holtec may request to amend the authorisation to include these companies once the necessary approvals are obtained.
India-France: The first meeting of the India-France Special Task Force on Civil Nuclear Energy was held in January 2025. The two countries signed a letter of intent for SMRs and advanced modular reactors. In addition, an implementing agreement was signed between India’s Global Centre for Nuclear Energy Partnership and the Department of Atomic Energy and France’s INSTN and the CEA for cooperation in the training and education of nuclear professionals.
France’s Électricité de France has partnered with NPCIL to build advanced nuclear reactors under the 9,900 MW Jaitapur nuclear power plant.
India-Russia: India and Russia share a long-standing and robust partnership in the field of civil nuclear energy. In July 2024, India and Russia discussed plans for jointly constructing six low-power and high-power nuclear power plants in India. The countries are currently evaluating technical considerations for the implementation of another nuclear power plant with pressurised water reactors in India.
Issues and challenges
India’s nuclear sector faces a host of challenges on the legal, regulatory, financial, technological and operational fronts that hinder its growth. Current laws restrict direct private sector involvement in the sector and place significant liability burdens on operators. Amendments to these laws are under way and, once introduced, broader private sector participation is expected. Apart from this, issues such as lengthy regulatory approvals, safety concerns and public resistance, and challenges in acquiring suitable land and ensuring water availability continue to impact project timelines and feasibility.
Nuclear projects are capital-intensive and have long gestation periods and high financing costs. There is a need for de-risking mechanisms and greater access to affordable capital to encourage participation. Sovereign guarantees, viability gap funding and innovative financing models are necessary to attract investment. There is a significant shortage of skilled professionals in reactor design, construction and operations. Large-scale, targeted skilling programmes and international partnerships are essential to build a competent workforce.
Overall, to support India’s vision of Viksit Bharat 2047, expanding nuclear capacity to 100 GW by 2047 will be crucial for ensuring a secure, sustainable and resilient energy sector. That said, the success of the sector depends on faster project execution, a favourable policy and regulatory framework, technological advancements and an ecosystem of skilled manpower.