Context

The Union Budget 2025–26 has set an ambitious target of 100 GW nuclear power capacity by 2047, supported by a ?20,000 crore allocation for Small Modular Reactors (SMRs). This signals a strategic pivot toward nuclear energy as a key driver for a developed and net-zero India.

India’s Nuclear Power Journey: From Apsara to 2047

• Pioneering Start:
  • Apsara (1956) – Asia’s first research reactor
  • Tarapur (1963) – First commercial power plant
• Technological Isolation:
  • Post-1974 nuclear test and non-signature of NPT led to export bans and global isolation.
• Self-Reliance in PHWRs:
  • India developed indigenous 220 MW Pressurised Heavy Water Reactors (PHWRs) to bypass enriched uranium dependency.
• Global Reintegration (Post-2008):
  • Indo–U.S. Civil Nuclear Deal and NSG waiver allowed import of fuel and international collaboration.

Why Nuclear Power Matters for India’s Future

1. Round-the-Clock Power:
   Reliable base-load supply essential for industrial growth, unlike intermittent solar/wind.
2. Low-Carbon Energy:
   Minimal GHG emissions align with India’s net-zero by 2070 commitment (COP26).
3. Energy Security:
   Reduces fossil fuel imports; enhances strategic autonomy.
4. High Energy Density:
   Requires less land and resources; vital for dense urban and industrial needs.
5. Scalable for Growth:
   Critical to achieving the 100 GW target by 2047 and supporting the $35 trillion economy vision.

Key Challenges to Nuclear Expansion

1. Restrictive Legal Framework

• Atomic Energy Act, 1962 restricts operations to government entities.
• Civil Liability for Nuclear Damage Act (CLNDA), 2010 deters private/foreign participation due to supplier liability.

2. Regulatory and Institutional Gaps

• Atomic Energy Regulatory Board (AERB) lacks statutory independence.
• Nuclear Safety Regulatory Authority Bill lapsed in 2011.

3. Financial Constraints

• High capital costs: ~$2 million/MW for PHWRs vs. <$1 million/MW for coal.
• Nuclear not yet eligible for green finance; limited private/PPP frameworks.

4. Tariff and Legal Ambiguities

• NPCIL tariffs governed by the Atomic Energy Act; legal disputes with DISCOMs remain unresolved.

5. Slow International Partnerships

• U.S. (Westinghouse) and France (EDF/EPRs) projects stalled for over a decade.

Way Forward: Unlocking Nuclear Potential

1. Legislative Reform

• Amend Atomic Energy Act and CLNDA to:
  • Permit private and foreign joint ventures.
  • Clarify liability-sharing and ownership roles.

2. Independent Nuclear Regulator

• Enact the Nuclear Safety Regulatory Authority Bill.
• Ensure transparency, accountability, and faster clearances.

3. Green Finance and Incentives

• Classify nuclear under green energy taxonomy.
• Offer tax breaks, viability gap funding, and long-term PPAs.

4. SMR Deployment

• Deploy standardised 220 MW PHWR-based SMRs.
• Focus on industrial captive power, replacing fossil-fuel-based plants.

5. Revive Foreign Collaborations

• Fast-track stalled deals with France (EPRs) and U.S. (AP1000s).
• Encourage PSU–private partnerships (e.g. NTPC, Adani, Tata, Vedanta).

Conclusion

India must now move from cautious progress to bold reform in nuclear energy. By modernising its legal, regulatory, and financial frameworks, nuclear power can become the cornerstone of India’s green, secure, and inclusive growth strategy. Achieving 100 GW by 2047 is not merely an energy milestone—it is central to realising India’s vision of Viksit Bharat and global climate leadership.

Source: The Hindu (TH)