GS Paper: GS3

Why in the News?

The Union Budget 2025–26 marked a major policy shift by announcing India’s ambitious target of 100 GW nuclear power capacity by 2047, up from the current 8.18 GW. It also allocated ₹20,000 crore for developing five indigenously designed Small Modular Reactors (SMRs) by 2033.

Why is nuclear energy vital for India’s low-carbon future?

• Provides Reliable Base-load Power: Unlike solar and wind, which are intermittent, nuclear power offers continuous, stable electricity essential for industrial growth and urbanisation. Eg: In 2024, despite renewables making up nearly 50% of installed capacity, they produced only 240 TWh, while coal contributed 75% of generation due to its reliability. Nuclear can help replace coal-based base-load.
• Supports India’s Net-Zero and Energy Goals: India has committed to net-zero emissions by 2070, 500 GW non-fossil capacity by 2030, and reducing carbon intensity by 45% over 2005 levels. Eg: Small Modular Reactors (SMRs), with ₹20,000 crore allocated in the 2025-26 Union Budget, are being developed as clean alternatives to replace captive thermal power plants (~100 GW) over two decades.
• Globally Recognized as Key Low-Carbon Technology: The world is increasingly viewing nuclear energy as essential to climate goals, making it easier to attract investmentand international cooperation. Eg: At COP28 (Dubai, 2023), over 20 countries, including India, endorsed the Declaration to Triple Nuclear Energy, recognizing it as vital to reducing fossil fuel dependency.

How has past nuclear policy shaped India’s current capacity?

• Early Vision, Delayed Progress: India had an early start with the establishment of Apsara reactor in 1956 and Dr. Homi Bhabha’s vision of 8 GW by 1980. However, geopolitical events like the 1974 Peaceful Nuclear Explosion (PNE) and India’s refusal to join the NPT (1968) led to international isolation, slowing progress and pushing targets further.
• Indigenisation of Reactor Technology: Due to technology denial regimes, India focused on developing its own Pressurised Heavy Water Reactors (PHWRs). Starting with 220 MW units, India scaled them up to 540 MW (2005-06) and later to 700 MW (Kakrapar, 2024), building a strong indigenous design and manufacturing base.
• Limited International Collaboration Post-CLNDA: The 2008 NSG waiver post-India–U.S. nuclear deal enabled resumption of fuel and technology imports. However, the Civil Liability for Nuclear Damage Act (2010) imposed supplier liability, deterring foreign companies. As a result, only Russia has partnered with India at Kudankulam, limiting the scale of international cooperation.

What hurdles limit private participation in nuclear energy?

• Restrictive Legal Framework: The Atomic Energy Act, 1962 allows only government entities to operate nuclear power plants. Private companies cannot own or control nuclear facilities, limiting their role to ancillary services unless the Act is amended.
• Supplier Liability under CLNDA, 2010: The Civil Liability for Nuclear Damage Act places liability not just on the operator (NPCIL) but also on equipment suppliers, making private and foreign companies reluctant to invest due to the high risk exposure.
• Lack of Financial and Regulatory Clarity: There is no independent nuclear regulator — the AERB is not a statutory body and reports to the Department of Atomic Energy, raising concerns about impartial oversight. Additionally, the absence of a transparent tariff mechanism and nuclear power being excluded from “renewable” status limits access to green financing and incentives.

Why is an independent nuclear regulator necessary?

• Ensures Credible and Impartial Safety Oversight: With the proposed entry of private players into nuclear energy, there is a need for transparent and independent safety regulation to ensure public trust and prevent conflicts of interest. The current Atomic Energy Regulatory Board (AERB), though “autonomous”, is not a statutory body and functions under the Department of Atomic Energy, creating institutional dependency.
• Meets Global Standards and Commitments: According to International Atomic Energy Agency (IAEA) norms, a legally independent regulator is essential to uphold nuclear safety, licensing, and environmental safeguards. This will also improve India’s credibility in international collaborations and foreign investment.
• Supports Sectoral Expansion with Accountability: As India aims for 100 GW nuclear capacity by 2047, regulatory functions will become more complex, especially with new technologies like Small Modular Reactors (SMRs). An independent authority can better handle licensing, monitoring, safety audits, and dispute resolution without bureaucratic delays.
• Revives Dormant Reforms: A draft bill to create a Nuclear Safety Regulatory Authority was introduced in 2011 but lapsed. Reviving this reform is crucial to align with the growing scale and diversity of the nuclear energy programme.

What reforms are needed to meet India’s 100 GW nuclear goal by 2047? (Way forward)

• Legislative and Regulatory Overhaul: Amend the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 to allow private sector participation, define clear liability norms, and permit foreign direct investment (up to 49%) while maintaining Indian ownership and control. Establish an independent statutory nuclear regulator to ensure safety and build investor confidence.
• Financial and Institutional Reforms: Classify nuclear energy as a green energy source to make it eligible for green finance, tax incentives, and viability gap funding. Streamline land acquisition, simplify licensing for PHWR and SMR deployment, and facilitate public-private joint ventures (e.g., NPCIL-NTPC) to scale up infrastructure and domestic supply chains.

Mains PYQ:

[UPSC 2023] With growing scarcity of fossil fuels, the atomic energy is gaining more and more significance in India. Discuss the availability of raw material required for the generation of atomic energy in India and in the world.

Linkage: This question directly addresses the increasing importance of atomic energy in India due to fossil fuel scarcity, which aligns with the nuclear power as a “major pillar in India’s energy mix” for achieving economic growth and “net zero emissions by 2070”.