TThe Union budget for 2025-26 meant a significant shift in the Indian nuclear energy plan by announcing an ambitious target of 100 GW of energy generation by 2047, which is 8.18 GW compared to the current 8.18 GW. This position of nuclear energy as the main pillar in the Indian Energy Mix, due to the two goals that appear as a developed country (Viksit Bharat) by 2047, and by 2070 it reaches “pure zero emissions”.
At the same time, nuclear energy missions announced a special allocation of 20,000 GBP to develop “at least five indigenous and operational small modular reactors (SMR) by 2033.” These ambitious plans will need the involvement of private players, domestic and foreign, to the government sector, which will require significant changes in legislative, financial and regulatory framework. The government indicated that some changes in the 1962 atomic energy Act and civil liability for the Nuclear Damage Act (CLNDA), 2010 are in the amount. However, such reforms also require a change in the mind.
Nuclear path
India was early and set up the first Asian nuclear research reactor, Apsar, in 1956, and the beginning of work on the first Asian nuclear energy reactors in Tarapore in 1963. Already in 1954, Dr. Homi Bhabha, architect of the Indian nuclear program until 1980.
But the road was long and difficult. After the Indian war with China in 1962; its entry to the nuclear club in 1964; The decision to stay outside the Nuclear Non -Reliece Contract (NPT) in 1968; And the test of a peaceful nuclear explosion (PNE) in 1974 was excluded from the developing nuclear order. International cooperation ended export checks and slowed the nuclear energy program. This has led to the nuclear power to be pushed at 10 GW until 2000.
In addition, India needed time to have a successful 220 MW proposal (PhWR) used in Rajasthan. Its advantage was that he used natural uranium as a fuel, unlike the design of the lightweight Tarapur (LWR), which used the low enriched uranium (Leu) that India was acquired from the US, and later from France. Subsequently, the same 220 MW PhWR units in Narora, Kaiga, Kakrapar, etc. were established and the design was upgraded to 540 MW (established in Tarapur in 2005-06) and 700 MW, with two units in the Kakrapar in 2024.
After nuclear tests in 1998, followed by intensive negotiations with the US and other strategic partners, India has finally gained admission as a responsible nuclear energy. She also gained special surrender from a group of nuclear suppliers (NSG).
Thus, India was ready to restore replacements with other nuclear powers to import nuclear fuel and advanced reactors for expanding their nuclear program.
CLNDA, however, created new problems that prevented such expected external participation. In fact, Russia is the only country that cooperates with us in Kudankulum with six energy reactors VVER-1000, because the government agreement signed in 1988, presented CLNDA.
Toward the development of greenery
In order to become a developed country by 2047, the annual revenue per capita per capita must grow from the current $ 2,800 to $ 22,000, and the HDP must grow from the current $ 4 trillion to more than $ 35 trillion. There is a well -established correlation between economic growth and energy consumption. In 2022, the Indian electricity consumption per capita was 1,208 kWh, compared to 4,600 kWh for China and more than 12,500 kWh for the US
The Indian capacity of electricity production, currently 480 GW (divided almost the same between fossil fuels and renewable sources), will have to grow five times and represent the growth of population and urbanization. However, solar, wind and small hydro projects provide only intermittent strength. Therefore, from 2030 Terrawatt hour (TWH)-Electricity produced in 2024-nicked energy with half generation capacity was only 240 TWh. The thermal plants burned coal represented 75% of energy production.
Climate change obligations announced by Narendra Modim in 2021 in Glasgow Cop26 “Clean zero emissions by 2070, increased capacity of non -nodal energy to 500 GW by 2030 will not meet 50% of energy inquiry by 2030 by renewable sources. able to reconsider its growth. It is estimated that renewable energy is (including solar, water, wind and biomass) to provide 20% of demand and up to 25% with battery investments and drawing. Thus, an apparent candidate that promotes energy growth in India is nuclear energy.
Globally there is a restored interest in nuclear energy. This was reflected in Dubai 2023 COP28 “Declaration of triple nuclear energy”, which recognizes nuclear energy as a critical entry in relying on fossil fuels, increase energy safety and move towards the future of low carbon. In June, the International Atomic Energy Agency (IAEA) and the World Bank agreed to cooperate on the support of nuclear energy in developing countries, which means a significant political shift. The President of the World Bank Ajay Banga stressed: “Nuclear (energy) provides the basic stress strength necessary for building modern economies.”
Creating an environment allowing
The government looks at three routes. One of them is to standardize the 220 MW PhWR design and apply it to small modular Bharat reactors, which would significantly reduce the costs and time of commissioning. This could replace captivity thermal power plants, which today represent more than 100 GW and will be replaced in the next two decades.
The second song is to expand the Nuclear Power Corporation of India Limited (NPCIL) plans for 700 MW PhWR by facilitating land acquisition, streamlining and strengthening indigenous supplier chains.
The third song is to speed up negotiations with partners in France and the USA, which has been moving at a glacial pace for the last 15 years.
Under the Atomic Energy Act, the nuclear energy is the industry reserved by the government. NPCIL is a government company that builds, owns and operates PhWR, the first two Tarapur LWR and Russian designed VVERS. Nuclear energy funding varies qualitatively due to higher costs of capital, lower operating costs, life cycle 50-60 years and costs associated with decommissioning, as well as radioactive waste management. The PhWR for the indigenized PhWR has capital costs of $ 2 million/MW, while the equivalent costs of the heat unit of burnt coal are just below a million. Given the annual NPCil budget of $ 1.2 billion, the government realized that the private sector company would have to be brought to this sector to achieve a 100 GW goal, requires a comprehensive set of changes to the Atomic Energy Act.
Majority/minority ownership questions; whether the nuclear operator will be exclusively NPCil; which is responsible and control over part of the nuclear island plant; And concerns about the responsibility for the supply of fuel and waste management will have to be discussed with potential stakeholders, which include main players such as Tatas, Adani, Ambani, Vedant, etc. All of these will require changes in the 1962 law.
The 2010 CLNDA will also be required a set of comprehensive changes, in particular as regards the provisions on liability that affects not only the “operator” but also the “supplier” of nuclear energy.
The third area is commercial disputes concerning tariffs. The NPIC nuclear electricity tariff is informed under the Atomic Energy Act. In general, commercial disputes fall into the Electricity Act and are settled by the Central Electricity Regulation (CERC), but the recent dispute between NPCIL and Gujarat Urja Vikas Nigam led to the contradictory views of the CERC and the Court of Appeal. The case is now considered in the Supreme Court. If the entry of the private sector enters the “balanced energy costs” in terms of thermal, solar, wind and hydro, it will depend on how the issue of ownership and control is determined.
While India has a perfect nuclear security record, certification and security supervision is the responsibility of the atomic energy regulatory board (AERB), which is “autonomous” but not a legal entity and is subordinate to the Ministry of Atomic Energy. In 2011, a bill was sent, which founded Aerb as an independent regulatory body, but withdrew the bill. With the entry into the private sector, the need for an independent regulator becomes.
In addition, it will be necessary to introduce a number of financial incentives. While nuclear energy is a source of low -carbon energy, it is not classified as “renewable” such as solar or wind. Revision of this classification would cause nuclear energy projects to cause tax incentives and specially designed “green financing” tools. Long -term premises and the provision of viability funding are other incentives. To ensure Indian ownership and control, the sector must also be open to direct foreign investments, perhaps up to 49%.
In the past, the process of reform was preliminary. In 2011, NPCIL created a joint venture (JV) with the National Thermal Power Corporation (NTPC), but disappeared until it was revived last year. It will now build and operate four units of 700 MW, which is planned to come to Mahi Bansware in Rajasthan. The soil acquisition takes place and the first unit will take seven years as soon as it is completed. It is also assumed by JV with a rural electrification company (REC). Both Rec and NTPC are public sector units and these JV will be completely government entities.
However, if India has to meet the promise of 100 GW by 2047, it needs foreign partners and the private sector. Although the government has accepted it, now it must be forwarded with reforms comprehensively and definitely.
Rrakesh Sood is a former diplomat and is currently a distinguished member of the Council for Strategic and Defense Research.
