India's Nuclear Power Expansion: A Strategic Shift

In her 2025-26 Budget speech, Finance Minister Nirmala Sitharaman announced a significant increase in India's installed nuclear power generation capacity, from 8,180 MW to 100,000 MW (100 GW) by 2047. This ambition is backed by the introduction of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, intended to revolutionize India's nuclear energy sector.

Key Legislative Changes

• The SHANTI Act replaces the 1962 Atomic Energy Act and the 2010 Civil Liability for Nuclear Damage Act (CLNDA).
• It opens the nuclear sector to private companies to build, own, and operate nuclear power plants.
• It provides statutory status to the Atomic Energy Regulatory Board (AERB).
• Revises the liability framework to encourage private and foreign investment.

Goals Driving Reforms

• Achieving a "Viksit Bharat" (Developed India) by 2047.
• Reaching net-zero emissions by 2070, necessitating a shift from fossil fuels to renewables and low-carbon options.

Current Energy Landscape

• In 2024, India's per capita electricity generation was 1,418 kWh, compared to the OECD average of over 8,000 kWh.
• By June 2025, India's electricity generating capacity was 476 GW, with 50% from non-fossil fuel sources.
• Renewables make up 227 GW, and nuclear power accounts for 8.8 GW.
• Thermal power, primarily coal-based, accounts for 240 GW.

Challenges and Opportunities

To realize the 100 GW nuclear power target by 2047, significant investments and strategic planning are necessary.

• India needs to grow its electricity capacity to over 2,000 GW for "Viksit Bharat".
• Nuclear power is seen as a viable baseload option for achieving net-zero.
• Private and foreign investment is crucial for raising the needed $200 billion (₹18 lakh crore).
• Fleet mode construction for new reactors can streamline production and reduce costs.

Technological and Financial Considerations

• Research and development of indigenous Small Modular Reactors (SMR) is underway, with government funding of ₹20,000 crore.
• Efficient project management and modularization can reduce construction timelines.
• Appropriate financing models are essential due to high upfront costs and long operational life of nuclear plants.

Regulatory and Strategic Implications

• The SHANTI Act delineates between strategic and civilian nuclear activities.
• Important issues such as tariffs, fuel ownership, waste management, and insurance require transparent regulatory frameworks.

The successful implementation of the SHANTI Act relies on meticulous planning and execution to fulfill India's nuclear energy potential and contribute to the country's developmental and environmental goals.