India's Nuclear Power Expansion Plan

In the 2025-26 Budget speech, Finance Minister Nirmala Sitharaman announced an ambitious plan to expand India's nuclear power generation capacity from 8,180 MW to 100,000 MW (100 GW) by 2047. This transformation is driven by the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, introduced in December 2025.

Key Legislative Changes

• SHANTI Act Reforms:
  • Allows private companies to build, own, and operate nuclear power plants.
  • Grants statutory status to the Atomic Energy Regulatory Board (AERB).
  • Revises the liability framework to encourage private and foreign investment.
  • Repeals the 1962 Atomic Energy Act and the 2010 Civil Liability for Nuclear Damage Act (CLNDA).

This legislative shift aims to meet two primary objectives: achieving Viksit Bharat by 2047 and net-zero emissions by 2070.

Current Energy Landscape

• India's per capita electricity generation in 2024 was 1,418 kWh, significantly lower than China (7,097 kWh) and the United States (12,701 kWh).
• Renewable energy sources accounted for approximately 50% of India's 476 GW generating capacity as of June 2025.
• Nuclear power capacity was 8.8 GW, contributing 57 TWh, or about 3% of total electricity generation.

Challenges and Opportunities

• Infrastructure Requirements:
  • India needs to increase its electricity generating capacity to over 2,000 GW for Viksit Bharat.
  • Nuclear power offers a steady baseload option compared to land-intensive renewable sources.
• Investment and Cost:
  • The construction cost for India's 700 MW PHWR is $2 million per MW, among the lowest globally.
  • Adding 90 GW will require over $200 billion (₹18 lakh crore), necessitating private investment.
• Technical Developments:
  • Development of indigenous Small Modular Reactors (SMRs) with capacities of 5 MW, 55 MW, and 200 MW by 2033.
  • Potential use of Thorium cladding with HALEU for early exploitation of India's thorium reserves.

Strategic and Regulatory Considerations

• Need for a clear distinction between strategic and civilian nuclear activities as per the SHANTI Act.
• Addressing issues related to nuclear power tariffs, fuel ownership, waste management, insurance, and liability transparently.
• Modifying exclusion zone regulations for captive single-unit reactors.

The success of this nuclear expansion plan hinges on comprehensive planning, investment, and regulatory clarity, aiming to deliver a significant transformation of India's energy landscape.

Authored by Rakesh Sood, Distinguished Fellow at the Council for Strategic and Defence Research