By: Khushbu Ahlawat, Consulting Editor, GSDN
Introduction
India’s energy transition is entering a decisive phase, marked by the urgent need to balance rapid economic growth, rising electricity demand, and climate commitments. The recent policy push to transform the nuclear power sector—highlighted by proposals to significantly expand capacity and enable private sector participation—signals a structural shift in India’s energy strategy. Nuclear power, long constrained by regulatory, financial, and technological barriers, is now being repositioned as a critical pillar of India’s low-carbon future.
It underscores that India aims to increase its nuclear capacity from under 10 GW to 100 GW by 2047, a target that reflects both ambition and necessity. However, achieving this goal will require not only legislative reform but also institutional restructuring, investment mobilisation, and technological innovation. The transformation of India’s nuclear landscape thus represents a broader shift from state-dominated control to a more diversified, market-oriented framework.
Policy Reform and Institutional Transformation
A central feature of the proposed transformation is the introduction of the Nuclear Energy for Transforming India (SHANTI) Bill, which seeks to dismantle longstanding structural barriers. Historically, nuclear energy in India has been the exclusive domain of the Department of Atomic Energy (DAE), with strict state control over generation, ownership, and operations.
The SHANTI framework proposes to open the sector to private participation, grant statutory status to the Atomic Energy Regulatory Board (AERB), and revise liability laws that have deterred foreign investment. The potential replacement of the Civil Liability for Nuclear Damage Act (2010) is particularly significant, as liability concerns have long discouraged global nuclear suppliers from entering the Indian market.
However, as the article rightly points out, legislative change alone is insufficient. The success of these reforms depends on implementation clarity, regulatory coherence, and alignment between central and state institutions. Without these, the ambitious targets risk remaining aspirational.
Energy Context: Why Nuclear Matters Now
India’s energy demand is projected to grow exponentially, with total electricity requirements expected to exceed 2,000 GW by 2047. Despite rapid expansion in renewable energy, structural challenges remain. Renewable sources such as solar and wind are inherently intermittent, dependent on climatic conditions and geography.
Data from 2024–25 shows that while renewables accounted for nearly 50% of installed capacity, they contributed only around 28% of actual electricity generation, highlighting the gap between capacity and reliability. In contrast, thermal power continues to dominate with approximately 75% of electricity generation, underscoring India’s continued dependence on fossil fuels.
Nuclear energy offers a crucial advantage: it provides stable, baseload power with low carbon emissions, making it indispensable for achieving India’s net-zero target by 2070. As energy experts note, “without firm, non-intermittent power sources like nuclear, deep decarbonisation remains structurally constrained.”
Current Status and Growth Trajectory
India’s nuclear power programme, operational since 1969, currently consists of 24 reactors with a capacity of approximately 8.78 GW. While this represents steady progress, it remains modest compared to global leaders.
The government’s past efforts, including the fleet mode construction of 10 reactors in 2017, aimed to accelerate capacity expansion through standardisation and economies of scale. However, delays in execution and financing challenges have slowed progress.
Financially, nuclear power projects remain capital-intensive, with costs ranging between ₹20,000–₹24,000 crore per reactor, and an average cost of around $2 million per MW. Estimates suggest that achieving 100 GW capacity could require investments exceeding $200 billion, making private and foreign participation essential.
A closer examination of comparative data underscores both the scale of India’s nuclear ambitions and the gap it must bridge to reach global benchmarks. As of 2025, India’s nuclear power capacity of approximately 8.78 GW accounts for less than 3% of its total electricity generation, significantly lower than the global average of around 10%. In contrast, countries such as the United States operate over 90 GW of nuclear capacity, contributing nearly 18–20% of their electricity mix, while France derives over 65% of its electricity from nuclear energy, reflecting decades of sustained investment and policy continuity. China, meanwhile, has rapidly expanded its nuclear programme, with over 55 GW operational capacity and more than 20 reactors under construction, positioning itself as a global leader in new nuclear deployment. From a cost perspective, India’s nuclear tariffs currently range between ₹6–₹9 per unit, higher than solar tariffs but competitive when adjusted for reliability and lifecycle output. Additionally, nuclear plants in India operate at capacity factors exceeding 80%, compared to 20–25% for solar and 30–35% for wind, highlighting their efficiency as baseload providers. Projections by energy agencies indicate that to achieve 100 GW by 2047, India will need to commission at least 4–5 GW annually, a pace nearly four times its historical average. This data underscores that scaling nuclear energy will require not only policy reform but also accelerated project execution, financial innovation, and long-term strategic planning.
Technological Pathways and Innovation
A key component of India’s nuclear strategy lies in technological diversification and indigenisation. The editorial highlights multiple pathways:
- Adoption of Pressurised Heavy Water Reactors (PHWRs)
- Exploration of Small Modular Reactors (SMRs)
- Development of thorium-based fuel cycles, leveraging India’s vast thorium reserves
SMRs, in particular, are emerging as a promising solution due to their lower capital costs, modular construction, and suitability for industrial applications. India aims to deploy several SMRs by 2035, aligning with global trends in nuclear innovation.
Additionally, the potential use of High Assay Low Enriched Uranium (HALEU) could enhance efficiency and performance, though it requires technological and regulatory readiness. An often underemphasised yet crucial aspect of nuclear energy expansion is its integration into India’s evolving power grid and system management architecture. As India moves towards a high-renewable energy mix—with a target of 500 GW of non-fossil fuel capacity by 2030—grid stability is emerging as a key operational challenge. Renewable energy sources, particularly solar and wind, introduce variability that requires balancing through firm and dispatchable power sources. In this context, nuclear power plants, with their high capacity factors of over 80% and predictable output profiles, can play a stabilising role in maintaining grid frequency and reducing dependence on coal-based balancing power. Data from grid operators indicates that frequency deviations and ramping requirements have increased significantly in recent years due to renewable intermittency, necessitating investments in flexible generation and storage solutions. While battery storage is expanding, its current costs and duration limitations make it insufficient as a standalone solution for long-duration balancing. Nuclear energy, when integrated with advanced grid management systems and flexible operation protocols, can complement renewables by providing baseload stability as well as limited load-following capability. Additionally, co-location of nuclear plants with industrial clusters and desalination facilities can optimise energy utilisation and reduce transmission losses. This systems-level perspective highlights that nuclear expansion is not merely about adding capacity but about enhancing overall grid resilience, efficiency, and reliability in a rapidly transforming energy ecosystem.
Industrial and Economic Implications
The expansion of nuclear energy has significant implications for India’s industrial ecosystem. Sectors such as steel, cement, petrochemicals, and data centres—which require continuous and high-density power—stand to benefit from reliable nuclear energy supply. Moreover, localisation of nuclear manufacturing and construction can stimulate job creation, technological capability, and supply chain development. However, achieving this requires addressing challenges related to financing, project timelines, and risk-sharing mechanisms. A critical financial dimension shaping the future of India’s nuclear expansion is the evolving landscape of energy investment and capital allocation. According to recent energy finance assessments, India will require annual energy investments exceeding $160–$180 billion through 2040 to meet its climate and growth targets, with nuclear energy expected to capture a gradually increasing share of this capital pool. However, unlike renewables—which attracted over $20 billion in investments in 2024 alone—nuclear projects continue to face challenges in securing long-term financing due to high upfront costs, extended gestation periods, and perceived regulatory risks. Globally, innovative financing models such as regulated asset base (RAB) frameworks, sovereign guarantees, and blended finance mechanisms have been used to de-risk nuclear investments, particularly in countries like the United Kingdom and Canada. For India, adopting similar approaches could significantly improve bankability and attract institutional investors such as pension funds and sovereign wealth funds. Additionally, lifecycle cost comparisons indicate that while nuclear projects have higher capital expenditure, their operational costs remain relatively low and stable over 40–60 years, making them economically viable over the long term. Another emerging factor is the potential inclusion of nuclear energy in green finance taxonomies, which could unlock access to international climate finance and lower borrowing costs. As India moves toward scaling its nuclear capacity, aligning financial frameworks with global best practices will be essential to ensure that investment flows match policy ambition and enable timely project execution.
Three-Front Strategic Approach
There is three-front strategy to achieve the 100 GW target:
- Adoption and indigenisation of global reactor designs (EDF, Westinghouse)
- Accelerated development of indigenous SMRs and advanced reactors
- Leveraging private sector expertise in design, construction, and financing
This multi-pronged approach reflects a pragmatic recognition that no single pathway can meet India’s ambitious goals.
Challenges and Structural Constraints
Despite its promise, nuclear expansion faces several constraints:
- High upfront capital costs
- Long construction timelines (often exceeding a decade)
- Regulatory and liability uncertainties
- Public concerns over safety and waste management
Additionally, issues related to tariff determination, fuel supply, and waste disposal remain unresolved.
Global Context and Strategic Significance
Globally, nuclear energy is witnessing renewed interest as countries seek reliable low-carbon energy sources. Nations like China and France are rapidly expanding nuclear capacity, while others are investing in next-generation technologies. For India, strengthening nuclear capabilities is not only an energy imperative but also a strategic necessity, enhancing energy independence and reducing reliance on imported fossil fuels. It also reinforces India’s position in global climate negotiations as a responsible and proactive actor. An equally critical factor influencing the trajectory of nuclear energy expansion is the evolving global nuclear supply chain and fuel security landscape. India currently relies significantly on imported uranium, sourcing supplies from countries such as Kazakhstan, Canada, and Australia, following the operationalisation of civil nuclear agreements after 2008. Estimates suggest that India imports over 80% of its uranium requirements, making long-term fuel security a strategic priority as capacity expands. Globally, uranium demand is projected to rise by over 40% by 2040, driven by renewed nuclear investments across Asia and Europe, which could tighten supply markets and increase price volatility. At the same time, enrichment and fuel fabrication capabilities remain concentrated in a few countries, adding another layer of geopolitical sensitivity to nuclear energy expansion. Domestically, India’s efforts to enhance uranium exploration and mining have yielded modest gains, but production continues to lag behind future requirements. In parallel, the development of a closed fuel cycle and reprocessing capabilities offers a pathway to improve resource efficiency and reduce external dependence over time. Strategic stockpiling of nuclear fuel, diversification of supply agreements, and investment in indigenous fuel cycle technologies will therefore be essential components of India’s long-term nuclear roadmap. This dimension highlights that scaling nuclear energy is not only a question of infrastructure and finance but also of resource security and geopolitical resilience in an increasingly competitive global energy environment.
Way Forward
To realise its nuclear ambitions, India must adopt a holistic and coordinated approach:
- Streamline regulatory processes and ensure policy clarity
- Attract private and foreign investment through risk-sharing mechanisms
- Invest in research and development for advanced technologies
- Strengthen institutional capacity and project management
- Address public concerns through transparency and engagement
As energy policy experts emphasise, the success of nuclear expansion will depend on execution efficiency as much as policy vision.
Conclusion
India’s effort to transform its nuclear power landscape represents a bold and necessary step in its energy transition journey. The push towards 100 GW capacity reflects a recognition that clean, reliable, and scalable energy sources are essential for sustainable development. However, the path ahead is complex, requiring not only ambitious targets but also pragmatic implementation, institutional reform, and stakeholder alignment. Nuclear energy, while not a panacea, offers a critical bridge between India’s present energy realities and its future climate commitments. Ultimately, the success of this transformation will depend on India’s ability to translate policy intent into operational reality, ensuring that nuclear power evolves from a marginal contributor to a central pillar of the nation’s energy architecture.
About the Author
Khushbu Ahlawat is a research analyst with a strong academic background in International Relations and Political Science. She has undertaken research projects at Jawaharlal Nehru University, contributing to analytical work on international and regional security issues. Alongside her research experience, she has professional exposure to Human Resources, with involvement in talent acquisition and organizational operations. She holds a Master’s degree in International Relations from Christ University, Bangalore, and a Bachelor’s degree in Political Science from the University of Delhi.
