India’s nuclear energy sector is witnessing an unprecedented transformation, with the government committing ₹20,000 crore under the Union Budget 2025–26 to develop Bharat Small Reactors (BSRs), opening the door to private sector investment for the first time in its history. This landmark decision, aimed at achieving a nuclear capacity of 100 GW by 2047, marks a strategic shift in India’s energy narrative—from state monopoly to a collaborative public-private framework that aspires to deliver cleaner, reliable, and scalable energy to fuel industrial growth and combat climate change.
The policy shift has invigorated India’s nuclear discourse, rekindling interest after two decades of stagnation following the India-US civil nuclear deal. While the Nuclear Power Corporation of India Ltd (NPCIL) retains operational control over existing and future large-scale reactors, private enterprises can now invest in smaller modular nuclear plants for captive use. This is not just about diversifying energy sources but reshaping the country’s carbon-neutral ambitions, as fossil fuel-dependent industries seek alternatives aligned with global decarbonisation targets.
In a closed-door meeting in Mumbai earlier this year, top scientists from India’s atomic energy community engaged with over 30 corporate leaders, including representatives from Adani, Tata, Reliance, JSW, Jindal Steel, Vedanta, and Hindalco. Hosted at NPCIL’s headquarters, the three-hour dialogue laid bare the enthusiasm, apprehensions, and roadblocks that may shape the private sector’s tryst with nuclear energy. The most pressing concerns revolved around the existing civil liability law, which places significant financial responsibility on operators in the event of a nuclear incident—making the sector a tough sell for risk-averse private players. The high capital and maintenance costs of nuclear infrastructure only add to the hesitation.
Corporates also voiced a demand for greater autonomy over the reactors they fund. At present, control of operations rests with NPCIL, which manages 25 nuclear reactors across seven sites, with a combined installed capacity of 8.8 GW. It aims to expand this to 23.8 GW by 2032. Yet, private players want arrangements akin to the renewable energy sector, where power purchase agreements (PPAs) provide a guaranteed revenue stream to justify heavy upfront capital investment. In this context, viability gap funding (VGF) could serve as a critical enabler, bridging the financial chasm and de-risking investment for early movers.
Fuel supply remains another key friction point. India continues to rely on imported uranium due to limited domestic reserves, although authorities have assured investors of sufficient availability through global and indigenous sources. Senior NPCIL officials have stressed that the current and projected fuel arrangements are adequate to support the nation’s evolving nuclear roadmap. Chancellor of the Homi Bhabha National Institute, advocate a dual-fuel strategy leveraging India’s rich thorium deposits, with an eye on recycling spent fuel to enhance long-term sustainability and self-reliance.
As the government prepares to amend legislative frameworks and ease regulatory processes, it must walk a tightrope between ensuring stringent safety standards and creating an attractive environment for investment. The road ahead may be riddled with challenges, but the convergence of state ambition and private innovation could place India on the global map of next-generation nuclear technology. For a country juggling rapid industrialisation and climate responsibility, enabling this synergy may prove not just prudent but imperative.
