Nuclear Energy Mission 2025: Encouraged Policy, Fueling The Future

Policy Update
Tanmyi Anthwal

Civil nuclear energy will ensure a significant contribution to the country’s development in the future. – Prime Minister Narendra Modi

Background

India’s energy landscape is at a crossroads. As one of the fastest-growing economies in the world, the country’s energy demand is rising at a pace few others can match. Coal still accounts for more than 70 percent of power generation, placing immense pressure on the environment and making decarbonisation both urgent and complex. At the same time, India has pledged to reach net-zero emissions by 2070, a long-term commitment that must be supported by decisive action today. Nuclear power, with its ability to provide clean, reliable, and large-scale energy, offers a compelling solution. It stands uniquely positioned to help India navigate the Energy Trilemma: securing affordable access to power, ensuring long-term energy security, and reducing carbon emissions.

In recognition of this strategic need, the Union Budget for 2025–2026 introduced the Nuclear Energy Mission under the Viksit Bharat programme. This marks a crucial step toward diversifying India’s energy portfolio and strengthening its long-term energy resilience. At its core, the mission aims to significantly scale up the role of nuclear energy in the country’s energy mix, both to reduce dependence on fossil fuels and to provide a stable foundation for future growth.

The mission represents more than just an energy transition. It reflects a broader shift in national policy, one that embraces clean, high-capacity, and technologically advanced sources of power. Through a combination of innovation, infrastructure development, and regulatory reform, the government is laying the groundwork for a robust domestic nuclear ecosystem. As part of the Viksit Bharat 2047 vision, this effort seeks to meet India’s growing electricity needs while staying aligned with its climate goals. It is a clear signal of the country’s commitment to inclusive, sustainable, and future-ready development—powered by a more secure and balanced energy system.

Figure 1

Aims

By 2033, at least five domestic Small Modular Reactors (SMRs) that use contemporary nuclear technology to produce electricity in a flexible, secure, and scalable way must be built and put into operation.

With the help of ₹20,000 crore set aside specifically for SMR-related infrastructure and innovation, to enhance nuclear technology research and development in the nation.
To promote greater private sector participation in nuclear energy by enacting laws and regulations that support local production, joint ventures, and investment.
Dedication to reducing carbon emissions through the civil nuclear program with private sector participation.
To expedite the deployment of nuclear power by providing a clear legal and regulatory framework, including proposed amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act.
To establish a strong framework for domestic nuclear production and innovation while ensuring that it aligns with national energy security goals and facilitates the transition to clean, high-capacity power generation.
As of January 30, 2025, India has 8180 MW of installed nuclear energy capacity. The government plans to increase the installed nuclear energy capacity from 8180 MW as of January 30, 2025, to 22,480 MW by 2031-32.

Functions

The Nuclear Energy Mission uses various strategies, including changes in legislation, new technology, and partnerships, to boost India’s nuclear energy capacity. One of the primary goals is to encourage private sector involvement through proposed amendments to the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010. These enhancements are intended to make the investment climate more appealing and to create new opportunities for private funding, expertise, and efficiency in the development of nuclear power.

An essential part of the project is forming partnerships to construct and operate Bharat Small Reactors (BSRs), which are compact 220 MW Pressurized Heavy Water Reactors designed for industrial power requirements. Under this arrangement, private companies provide funding, cooling water, and land, while the Nuclear Power Corporation of India Limited (NPCIL) handles design, quality assurance, and operational management. This collaboration improves project feasibility and helps India achieve its goal of using clean nuclear energy instead of fossil fuels to reduce carbon emissions in heavy industries.

In order to enhance its technological capabilities, the mission supports the Bhabha Atomic Research Centre’s (BARC) work on Small Modular Reactors (SMRs). These reactors are built in factories and are smaller (up to 300 MW). They offer affordable, scalable solutions for both remote and grid-connected applications. SMRs help optimize land use and offer flexibility to support renewable energy sources, improving grid stability as India works towards its net-zero emissions goals under the Paris Agreement.

To address increasing energy needs, the government has launched a strong capacity expansion plan. By 2031–2022, this plan seeks to increase nuclear power capacity from 8,180 MW in January 2025 to 22,480 MW. As part of it, ten new reactors will be constructed in various states, and a large nuclear power plant in Andhra Pradesh has been approved in partnership with the United States. One recent milestone that shows India’s growing competence in domestic nuclear technology is the criticality achievement at Rajasthan Atomic Power Project Unit-7.

Safety and regulatory control are critical to the mission’s success. India follows strict safety regulations that meet international standards, and its nuclear reactors consistently exhibit radiation levels well below those of other countries. This strong commitment, which ensures that its expansion proceeds with high safety, further supports the significance of nuclear energy in India’s clean energy future.

Figure 2

Significance

The discovery of more uranium riches nearby has extended the ageing Jaduguda Mines by more than 50 years. This ensures long-term continuity for civil nuclear operations, improves India’s nuclear fuel supply chain, and lessens dependency on imports.
India’s growing confidence in its capacity to design and operate large-scale reactors is evidenced by the successful commercial operation of the 700 MWe PHWRs at Kakrapar. These units demonstrate how domestic technology can meet complex, high-impact infrastructure needs.
With the Prototype Fast Breeder Reactor (PFBR-500 MWe) reaching major commissioning milestones in 2024, India is moving closer to its goal of a closed fuel cycle. This technology can significantly improve fuel efficiency and get rid of nuclear waste, both of which will benefit sustainability in the long run.
The creation of ASHVINI, a joint venture between NPCIL and NTPC, suggests a more coordinated approach to nuclear development. By pooling resources and knowledge, this partnership will more efficiently accelerate projects like the Mahi-Banswara nuclear park.
Small modular reactors (SMR) provide a safer, more flexible, and scalable nuclear alternative. Because of their small size, long refueling intervals, and off-grid installation capabilities, they are suitable for rural areas, industrial zones, and areas that are underserved by conventional power infrastructure.

Challenges ahead

The success of the Nuclear Energy Mission will depend not only on policy intent but also on how effectively India addresses several complex challenges. These span across safety, economic feasibility, and supporting infrastructure. Recognising and acting on these constraints early will be critical to delivering a secure, affordable, and sustainable nuclear future.

Safety Concerns
Nuclear safety must remain non-negotiable, especially as the sector opens up to private participation. The challenge lies in ensuring that commercial pressures do not dilute safety standards or regulatory oversight.

Private involvement could lead to pressure for cost-cutting, which risks compromising safety.
India’s regulatory framework must evolve to ensure independent oversight, transparency, and accountability.
Building public trust will require consistent enforcement of safety-by-design principles and rigorous third-party audits.

Economic Viability
While SMRs offer flexible deployment and smaller footprints, they currently face economic hurdles that could slow down adoption if not addressed.

SMRs produce power at a higher cost per unit compared to larger nuclear plants.
Without supportive financing mechanisms, long-term financial sustainability may be difficult.
Private investors need policy certainty, long-term purchase agreements, and support instruments like green bonds or viability gap funding.

Fuel and Waste Infrastructure
Scaling up nuclear capacity, especially with SMRs, will place new demands on India’s fuel supply chains and waste management systems.

SMRs may require specialised fuels such as high-assay low-enriched uranium (HALEU), which is not yet produced in India at a commercial scale.
Despite their smaller size, SMRs generate high-level radioactive waste that needs secure, long-term storage.
India’s current infrastructure for fuel production, reprocessing, and disposal is still developing and must be significantly strengthened.

Way Forward

Establish an independent nuclear regulatory authority with clear safety protocols for private companies. To maintain public confidence, enforce “safety-by-design” guidelines, and mandate third-party audits.
Offer innovative financing options like viability gap funding, green bonds, and long-term power purchase agreements to make small modular reactors (SMRs) more cost-competitive and attract private investment.
Increase the production of HALEU fuel, strengthen domestic uranium supply chains, and invest in safe disposal sites such as Deep Geological Repositories (DGRs) and closed fuel cycle technologies.

References

Department of Atomic Energy. (2025, February 3). Nuclear Power in Union Budget 2025‑26(Press release). Press Information Bureau, Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2099244
Vision IAS. (2025, March 24). Nuclear Energy Mission. Vision IAS Monthly Magazine. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2099244
Kunal, S., & Sinha, A. (2025, February 22). ₹20,000 crore for Nuclear Energy Mission: Union Budget ’25 goes big on nuclear power, proposes reforms. ETGovernment, Economic Times. https://government.economictimes.indiatimes.com/blog/20000-crore-for-nuclear-energy-mission-union-budget-25-goes-big-on-nuclear-power-proposes-reforms/118455001

About the contributor: Tanmyi Anthwal  is a Research Intern with IMPRI.

Acknowledgment:  The author sincerely thanks the IMPRI team for their valuable support.

Disclaimer:  All views expressed in the article belong solely to the author and not necessarily to the organisation.