The BJP-led NDA government’s first budget in their third consecutive term has signalled at a fresh push for nuclear energy through the deployment of still-under-development small modular reactors (SMRs). Although Finance Minister Nirmala Sitharaman did not reveal the specifics of this renewed push, she mentioned that the government will partner with the private sector for research and development, and the deployment of indigenously developed small nuclear reactors. However, she did not offer any timelines or deployment targets. The Finance Minister also promised a Critical Minerals Mission and a policy for pumped storage hydroelectric projects, towards India’s quest at harnessing diverse sources of clean energy and achieving energy security. Critical minerals like lithium, cobalt, nickel, copper or titanium are essential for several key components of the new economy like batteries, electric vehicles or solar electricity generation. Besides facilitating technology development and training workforce, the mission would work towards identifying and acquiring critical mineral assets across the world. Pumped storage projects involve the mechanical pumping of water to a reservoir located at an higher altitude, from where water can be dropped on turbines to produce electricity on demand. Pumped storage is considered a useful supplement to renewable sources like solar or wind energy, which are not available all the time. SMRs are significantly small reactors in comparison to the traditional nuclear reactors, usually having a capacity to produce not more than 300 MW of electricity. Their modular design ensures faster construction and deployment. But barring one reactor in China and another in Russia, SMRs are not in operation anywhere in the world right now, with the technology still under development. India last made a major announcement on nuclear energy way back in 2017, when it had approved ten 700 Mw traditional reactors at one go, in the largest ever expansion of the nuclear sector ever. None of those reactors are operational yet. The 23 operational nuclear reactors have a total installed capacity of 7,480 MW. This is planned to go up to 22,480 MW once the under-construction reactors, including the ones approved in 2017, come on board. However, much more nuclear energy is needed to power India’s clean energy transition. Since it is available all the time, nuclear energy is considered the only viable alternative to thermal power for providing baseload electricity. SMRs are meant to serve this demand for a quick ramp up of nuclear energy, even though integrating them into the electricity grid may still be a few years away. What was clear from the Budget, however, is that the SMRs would be indigenously developed and not imported from outside. The Finance Minister spoke about research and development, and deployment, of Bharat SMRs, clearly indicating that these would be indigenous reactors. India already has operational nuclear submarines, powered by reactors that essentially are SMRs.
