Nuclear Energy Developments in India
Overview and Strategic Objectives
India is advancing its civil nuclear program, particularly focusing on Pressurised Heavy Water Reactors (PHWRs), while also being open to international collaborations for scaling up projects. The country aims to enhance its base-load capacity and integrate into the manufacturing chain of Small Modular Reactors (SMRs).
Technology Preferences
- India has mastered PHWR technology but faces challenges with scalability and alignment with globally prevalent Light Water Reactors (LWRs).
- LWRs are technologically advanced but are cost-intensive, resulting in high per-unit power costs, which is a concern for India.
Challenges and Opportunities in Collaboration
- India's nuclear collaborations are driven more by financial needs than technological ones.
- High costs of importing LWRs could hinder the growth of indigenous reactor capacities and raise tariffs.
- The Jaitapur project is stalled due to high tariff and earlier liability concerns, which have been addressed in recent nuclear amendments.
Foreign Interest and Engagement
- The US delegation indicates interest in India's nuclear sector post-legal reforms, with coordination from the Nuclear Energy Institute and the US-India Strategic Partnership Forum.
- Foreign funds, including those from West Asia, show interest in financing India's nuclear ambitions, particularly SMRs.
Regulatory Changes and Industry Shifts
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 allows private sector participation in nuclear operations, marking a significant shift from previous public sector control. This includes changes to liability norms, previously governed by the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010.
Private Sector Engagement
- Meetings with major Indian energy companies like Reliance, Adani, Tata, and others signal growing private sector interest in nuclear power.
- The SHANTI Act addresses industry concerns over liability and opens up operational opportunities for private companies.
