With the Union Budget 2025–26 announcement of a 100 GW target for nuclear energy capacity by 2047 and Rs 20,000 crore outlay for small modular reactors (SMRs), the government’s emphasis on nuclear energy expansion is clear. There is also a clear emphasis on public–private partnerships in nuclear energy in the last two consecutive union budgets. Historically, the Department of Atomic Energy (DAE) has struggled to meet its capacity targets, largely due to challenges in securing sufficient investments. So far, nuclear energy has remained under state control, with an average annual budget of INR 24,000–25,000 crore. In contrast, the privatised renewable energy (RE) sector is estimated to have reached a market size of nearly INR 2 lakh crore in 2023.Expanding nuclear capacity will require significantly larger investments, and this is the first time India is exploring private financing in the highly regulated nuclear sector.
This move is expected to accelerate capacity expansion and help realise the 100 GW target. Importantly, this shift appears to be part of a deliberate policy strategy. Over the years, India has taken steps to address concerns related to nuclear liability, including joining the Convention on Supplementary Compensation (CSC) in 2016 and establishing the Indian Nuclear Insurance Pool (INIP) in 2019. A market-driven approach can potentially drive innovation, reduce costs, and accelerate deployment.
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