Empowering India's Future: Union Budget 2025-26's Ambitious Nuclear Energy Roadmap

In a landmark move, India's Union Budget for 2025-26 has unveiled an ambitious plan to significantly bolster the nation's nuclear energy capacity, setting a target of achieving 100 gigawatts (GW) by 2047. This initiative underscores the government's commitment to diversifying energy sources and enhancing energy security.

Amendments to Facilitate Private Participation

To realize this vision, the government has proposed amendments to the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010. These changes aim to open the traditionally state-controlled nuclear sector to private and foreign investments, thereby accelerating infrastructure development and technological advancements. Finance Minister Nirmala Sitharaman emphasized the necessity of these reforms in her budget speech, highlighting the role of private sector collaboration in achieving the 100 GW target.

Focus on Small Modular Reactors (SMRs)

A significant component of this nuclear expansion strategy is the development of Small Modular Reactors (SMRs). Recognized for their scalability and reduced capital costs, SMRs offer a flexible alternative to traditional large-scale reactors. The government has allocated ₹20,000 crore for research and development in this area, with plans to operationalize at least five indigenously developed SMRs by 2033.

Aligning with Climate Goals

This nuclear initiative aligns with India's broader commitment to achieving net-zero carbon emissions by 2070. By expanding nuclear capacity, the country aims to reduce its reliance on fossil fuels, thereby contributing to global efforts to combat climate change. Experts view this move as a positive step towards sustainable energy transition, though they call for clarity on implementation timelines and policy frameworks.

Challenges and Considerations

While the proposed amendments and investments mark a significant policy shift, several challenges remain. The stringent liability clauses in India's existing nuclear laws have previously deterred foreign participation. Additionally, public concerns about nuclear safety and the need for a robust regulatory framework will require careful navigation. The success of this mission will depend on effective collaboration between the government, private sector, and international partners.

India's 2025-26 Union Budget sets a bold course for the nation's energy future, with nuclear power playing a pivotal role. The targeted expansion to 100 GW by 2047, supported by legislative reforms and a focus on innovative technologies like SMRs, reflects a strategic approach to sustainable development and energy security.