India is opening its nuclear energy sector to private companies, focusing on Small Modular Reactors (SMRs) for sustainable power generation. Learn why this shift is crucial and how SMRs work.

India Opens Nuclear Energy Sector for Private Players

The Indian government is opening up the nuclear energy sector to private players, allowing companies to develop Small Modular Reactors (SMRs). The 2025-26 budget has allocated ₹20,000 crore for SMRs, with a goal to develop at least five indigenous SMRs by 2033.

This decision comes as the Department of Atomic Energy (DAE) faces funding challenges in expanding nuclear power capacity. While nuclear projects have an average annual budget of ₹24,000-₹25,000 crore, India’s renewable energy sector has already surpassed a market value of ₹2 lakh crore in 2023.

The government aims to generate 50% of India’s electricity from green sources within the next five years, but currently, only 39% of electricity is coal-free.

Which States Will See Nuclear Energy Expansion?

India aims to increase nuclear energy production capacity from 8,180 MW to 22,480 MW by 2031-32. The expansion includes 10 new reactors in states like:

Madhya Pradesh

Gujarat

Rajasthan

Tamil Nadu

Haryana

Karnataka

Additionally, pre-project activities for 10 more reactors are underway and expected to be completed by 2032.

One of the major projects is a 1,208 MW nuclear plant in Srikakulam, Andhra Pradesh, developed in collaboration with the United States.

What are Small Modular Reactors (SMRs) and How Do They Work?

Small Modular Reactors (SMRs) are next-generation nuclear reactors that generate between 20 MW and 300 MW of electricity. Each SMR can produce 7.2 million kWh of electricity per day, which can power 5,161 people for an entire year based on India’s average electricity consumption of 1,395 kWh per capita (2023-24).

Comparison: SMRs vs. Large Nuclear Power Plants

While large-scale nuclear power plants can generate more power, they require higher maintenance and longer construction timelines. In contrast, SMRs are more flexible, cost-effective, and suitable for remote locations.

Why Does India Need Small Modular Reactors (SMRs)?

India aims to produce 500 GW of non-fossil fuel energy by 2030, in line with its commitments made at the Glasgow COP26 summit. However, only 39% of the country’s electricity currently comes from non-fossil fuel sources.

To meet its renewable energy targets, the Bhabha Atomic Research Centre (BARC) is developing SMRs to power remote and rural areas more efficiently.

Why is the Private Sector Entering the Nuclear Energy Market?

India aims to achieve 100 GW of nuclear power capacity by 2047, up from the current 8,000+ MW. To meet this ambitious goal, the government is inviting private companies to participate in nuclear power development.

Companies Benefiting from India's SMR Initiative

Several global and domestic firms are set to gain from India’s small nuclear reactor plan, including:

NuScale Power

Westinghouse Electric Company

GE Hitachi Nuclear Energy

Rolls-Royce SMR

X-Energy

Holtec International

Cameco (Uranium Mining Company)

Indian Companies Interested in SMRs

Tata Power: CEO & MD Praveer Sinha has confirmed the company’s interest in the SMR initiative.

Jindal Nuclear Power Pvt Ltd: A subsidiary of Naveen Jindal’s group, planning to develop 18 GW of nuclear power capacity over the next 20 years.

Conclusion: The Future of Nuclear Energy in India

Opening the nuclear energy sector to private players will accelerate India’s transition to clean energy while enhancing energy security. SMRs will play a crucial role in India’s ambitious green energy goals, making nuclear power more accessible and scalable.

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By Team Atharva Examwise #atharvaexamwise