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How India’s nuclear mission can be both ambitious and realistic

As India liberalises its nuclear sector, a key question is - how can public–private partnerships effectively address the institutional and financial bottlenecks in its nuclear programme?

Nuclear energyOpening the nuclear sector to carefully regulated private participation could offer the much-needed infusion of capital, expertise, and efficiency.

— Renuka

As the world faces the accelerating threat of climate change, India stands at a crucial stage in its energy transition. With a commitment to achieving net-zero emissions by 2070 and a parallel goal of net-zero electricity by 2047, the country is under growing pressure to reshape its energy mix towards cleaner and more sustainable sources. Within this transition, nuclear energy has become an inevitable option capable of offering reliable, low-carbon baseload power to complement renewable energy like solar and wind. 

India’s current nuclear installed capacity is 8180 MW, spread across 24 nuclear power reactors. Also, there has been more than a 70 per cent surge in India’s nuclear power capacity in the last 10 years, increasing from 4,780 MW in 2013-14 to 8,180 MW at present.

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However, despite more than 75 years of nuclear research and development, India’s nuclear power generation remains modest, contributing only a small fraction to the country’s overall energy mix. The annual electricity generation from nuclear power plants is 47,971 million units, which is not sufficient for the growing population and energy demands.

Considering this, the government has recently signalled a renewed focus on nuclear energy, aiming to triple its current nuclear power capacity by 2032. To achieve this ambitious target, the government expressed its intention to open its nuclear sector for private players. 

Beyond the state-centric nuclear framework

India’s current nuclear energy model is based on the state-centric framework under the Atomic Energy Act, 1962. The Act confers the central government the exclusive authority over all nuclear activities in India, and leaves no scope for private investment. The Department of Atomic Energy and Nuclear Power Corporation of India Ltd (NPCIL) are largely responsible for the nuclear power generation along with Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI). 

The Atomic Energy Act was amended in 2015, and the definition of “government company” was expanded. It allowed NPCIL to form joint ventures with other Public Sector Undertakings (PSUs) to mobilise additional funding for the nuclear programme. But the amendment still prevents direct involvement of the private sector in the nuclear energy programmes of the country. 

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While this closed nuclear model has worked well on the national security front, strategic autonomy and nuclear safety, it is often argued that over time, it has emerged as a major constraint in achieving energy independence, evident in:  

— The slow pace of capacity addition due to the non-involvement of the private sector. 

— The lack of competition and innovation, which are key drivers of technological advancement and cost efficiency. 

— Missed key opportunities in global developments such as Small Modular Reactors (SMRs) and other advanced nuclear technologies due to financial and logical constraints.  

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Hence, the closed nuclear model risks becoming a bottleneck in meeting India’s growing demand for clean and sustainable energy and its climate commitments. 

Involving private sector

Under the Nuclear Energy mission for Viksit Bharat, India now strives to achieve the target of 100 GW nuclear power capacity by 2047. The mission is largely focused on developing Bharat SMRs, where Public-private collaboration would be crucial.

International experience underscores the value of private sector engagement in driving nuclear innovation and scale. Private companies in the US, the UK and France are pioneering advanced reactors and modular technologies. For India, liberalising the nuclear sector could accelerate progress in SMRs, thorium-based technologies and next-generation safety mechanisms. 

Apart from this, private participation can bring innovation, efficiency, and global best practices, complement public institutions and enable faster, safer and sustainable expansion of nuclear capacity to meet climate and energy goals. For this, the government has expressed its intention to amend the Atomic Energy Act of 1962. 

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Recently, TEMA India has commissioned the first private depleted heavy water upgradation facility, seen as a ‘milestone’ in India’s nuclear self-reliance, reducing dependence on Imports. It was India’s first private sector test facility, which was unveiled by the Bhabha Atomic Research Centre (BARC) and NPCIL. As India’s energy demand is projected to double by 2024, nuclear energy, with its high-capacity factor and minimal emissions, is poised to play a vital role in this evolving energy mix, along with solar and wind energy. 

Some concerns

Amidst this, there are several concerns that continue to hinder broader acceptance of private sector participation. Nuclear safety continues to be the foremost concern. India, being a population-dense country, the consequences of a potential accident could be devastating. Although India has a relatively safe operational record, gaps in terms of transparency, regulatory independence, and emergency preparedness have often been highlighted

Another issue is liability. The Civil Liability for Nuclear Damage Act, 2010, places liability on the operator and also on suppliers. This provision was intended to protect and compensate victims in the event of nuclear accidents. But this also deterred the private companies (foreign and Indian) from investing in the nuclear sector. 

Public trust around the expansion and privatisation of the nuclear sector remains fragile. Accidents like the Bhopal Gas Tragedy, Chernobyl, and Fukushima continue to impact the perception of people on nuclear and industrial risks. They serve as cautionary symbols and lead to a deep mistrust towards assurances on safety and emergency preparedness, especially in relation to new technologies. All these concerns need to be addressed to open the sector for private players efficiently and to ensure the safe design and operation of nuclear facilities. 

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Lastly, experts underscore that to achieve 100 GWe of nuclear capacity by 2047 would require 18,000 tonnes of uranium and given the global scarcity, such a target raises serious questions about fuel supply security. For this, India needs to accelerate the shift toward closed fuel cycles and thorium-based technologies, which not only conserve uranium but also improve reactor safety.

Need to be both ambitious and realistic 

If India has to achieve its climate goal by charting its path towards a low-carbon future, nuclear power can prove to be an essential tool. It has the potential to provide reliable, large-scale, and emission-free power, which complements the expanding portfolio of renewable energy.

In this context, opening the nuclear sector to carefully regulated private participation could offer the much-needed infusion of capital, expertise, and efficiency, especially in emerging technologies like small modular reactors and thorium-based systems.

However, unlike other renewable energies, the path to harnessing nuclear energy is not easy. It carries challenges, from high-risk consequences and long-term nuclear waste. Strong regulatory oversight, public trust, and a reformed liability framework constitute the pillars of this transition. Equally important is to have specialised manpower experts. 

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To conclude, India’s nuclear mission must be both ambitious and realistic, grounded in secure fuel supply strategies, robust safety frameworks, public engagement, and indigenous innovations. Only then can nuclear energy emerge as a strong pillar of clean, secure and inclusive energy development. 

Post read questions

How has India’s state-controlled nuclear energy model under the Atomic Energy Act, 1962 both advanced and constrained the country’s nuclear ambitions?

To what extent can public–private partnerships address the institutional and financial bottlenecks in India’s nuclear programme?

What role could Small Modular Reactors (SMRs) and thorium-based technologies play in making India’s nuclear energy programme more viable?

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How do historical disasters like Chernobyl, Fukushima, and Bhopal continue to influence public perception of nuclear safety in India?

What lessons can India draw from international experiences in liberalising the nuclear sector while balancing security and safety concerns?

Share your thoughts and ideas on UPSC Special articles with ashiya.parveen@indianexpress.com.

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