India's Nuclear Horizon: Unpacking New Government Policy and SMR Ambitions
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- October 05, 2025
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India is on the cusp of a significant transformation in its nuclear energy landscape, driven by a new government policy that invites private sector participation in the crucial nuclear power generation sector. Traditionally, this domain has been the exclusive purview of state-owned entities. This shift, outlined in the Atomic Energy (Amendment) Bill, 2024, signals a bold move to accelerate the nation's clean energy transition and meet its escalating power demands.
The policy specifically targets the development of Small Modular Reactors (SMRs), a cutting-edge technology poised to revolutionize nuclear energy.
Unlike conventional large-scale reactors, SMRs are designed to be compact, manufactured in factories, and then transported to sites for assembly. This modular approach promises quicker deployment, reduced construction costs, and enhanced safety features, making them an attractive option for various applications, including remote locations and industrial complexes.
However, the path to integrating SMRs and expanding nuclear power isn't without its complexities.
While the amendment opens doors for private investment, the Department of Atomic Energy (DAE) will maintain stringent regulatory oversight. Private companies can now participate in all aspects of nuclear power, including setting up and operating facilities, a stark departure from the previous framework where their involvement was limited to non-critical areas like equipment supply.
This regulatory balance aims to ensure both rapid development and uncompromised safety standards.
A critical aspect of India's nuclear strategy is the ambitious target of tripling its nuclear power generation capacity from 8,185 MW to 22,480 MW by 2031. This expansion is crucial for achieving India's net-zero emissions goal by 2070 and ensuring energy security in a rapidly growing economy.
SMRs are expected to play a vital role in meeting this target, complementing the existing fleet of larger reactors.
Despite the enthusiasm, challenges remain. The high upfront capital costs associated with nuclear power projects, even for SMRs, necessitate innovative financing models. Furthermore, public perception and safety concerns, often amplified by historical incidents like Chernobyl and Fukushima, require careful management and transparent communication from both the government and private developers.
The DAE and its regulatory body, AERB, are expected to enforce strict protocols to maintain public trust.
Globally, SMR technology is still in its nascent stages, with only a handful of designs having received regulatory approval in countries like the US and Canada. India's foray into SMR development places it among the pioneering nations exploring this technology.
The success of this initiative will depend heavily on robust domestic manufacturing capabilities, a skilled workforce, and international collaborations for technology transfer.
The new policy marks a pivotal moment for India's energy future. By strategically leveraging private sector strengths while maintaining robust state control over safety and regulation, India aims to harness the immense potential of nuclear energy, particularly SMRs, to power its growth trajectory and achieve its ambitious climate objectives.
The journey ahead promises innovation, challenges, and ultimately, a more sustainable energy landscape for the nation.
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