Harnessing India’s Nuclear Energy Growth

The editorial, titled "Nuclear Energy Can Help Power India's Economic Growth, Private Push Welcome," was published in Business Standard on 21/08/2025. It discusses the Government's shift towards allowing private participation in the nuclear energy sector. However, challenges such as regulatory hurdles and public concerns continue to persist, which could potentially hinder the growth of nuclear energy in India. 

For Prelims: Bharat Small Reactors, India's nuclear sector, Atomic Energy Act, 1962, Atomic Energy Regulatory Board, Civil Liability for Nuclear Damage Act, 2010,  Kudankulam Nuclear Power Plant, Fukushima disaster, Bhabha Atomic Research Centre 

For Mains: India’s Nuclear Energy Sector: Related Challenges & Way Forward

India's energy landscape is undergoing a transformative shift, with the government planning to open up the nuclear energy sector to private players for the first time in decades. This move is part of the country's broader vision to scale up nuclear power capacity to an ambitious 100,000 MW by 2047. However, challenges, including cost overruns, licensing delays, and public concerns, hinder nuclear energy growth in India. There is a need to streamline timelines, strengthen supply chains, and create a regulatory framework that fosters investment and public trust in the sector.  

How is Nuclear Energy Contributing to India’s Economic Growth and Sustainability Goals? 

• Reducing Fossil Fuel Dependency and Achieving Net-Zero Goals: Nuclear energy plays a pivotal role in India's strategy to reduce dependency on fossil fuels and meet its net-zero emissions target by 2070.   
  • With the ambitious target of 100,000 MW of nuclear capacity by 2047, nuclear power is poised to be a cornerstone in the country's clean energy transition.   
  • For instance, India’s nuclear power capacity is set to grow from 8,180 MW to 22,480 MW by 2031-32. 
• Meeting Energy Demands: To ensure energy reliability in this evolving urban-industrial ecosystem, nuclear energy is a critical pillar. 
  • Unlike renewable sources like wind and solar, which are intermittent, nuclear plants can operate 24/7, ensuring a consistent energy output.  
  • Currently, India’s per capita electricity consumption stands at 1,395 kWh (as of 2024), but this figure is expected to double by 2035. 
  • The Union Budget 2025-26 allocated Rs. 20,000 crore to the Nuclear Energy Mission, targeting the deployment of five Bharat Small Reactors (BSRs) by 2033 to diversify energy infrastructure. 
• Sustainable Urbanization and Industrialization: With India’s urban population projected to grow to 600 million by 2031, nuclear energy can meet the rising demand for clean and uninterrupted electricity in cities.   
  • It supports industrial growth, particularly energy-intensive sectors like manufacturing and steel, which require a steady power supply.   
  • Upcoming projects like the Rajasthan Atomic Power Station units 7 & 8 aim to address such demands sustainably.  
• Supporting Diplomatic and Economic Growth: India’s growing nuclear sector is not only a domestic achievement but also a powerful tool for diplomacy and global economic engagement.  
  • The pivotal 2008 US-India Civil Nuclear Agreement marked a major milestone, paving the way for India to forge collaborations with leading nuclear nations.  
  • Strategic partnerships, particularly with Russia, exemplified by the Kudankulam Nuclear Power Project, have substantially enhanced India’s access to advanced nuclear technologies and infrastructure.  
    • These collaborations have been crucial in expediting project timelines, improving reactor safety, and fostering local expertise. The economic benefits of these partnerships are equally profound, contributing to India’s energy security and driving economic growth. 
• Job Creation and Skill Development: Nuclear energy plays a significant role in job creation and skill development, which are crucial for India’s economic growth.   
  • The expansion of nuclear power plants generates employment opportunities in construction, operations, maintenance, and technology development.   
  • As per the International Atomic Energy Agency, nuclear power creates about 25% more employment per unit of electricity than wind power, while workers in the nuclear industry earn one-third more than in other renewable sectors.  
    • This aligns with India's broader goal of enhancing its industrial workforce to meet future energy demands.  
• Driving Technological Innovation and R&D: Nuclear energy drives technological innovation and research, particularly through advancements in Fast Breeder Reactors (FBRs).   
  • These technologies not only improve nuclear efficiency but also align with India’s long-term energy strategy to reduce reliance on uranium.   
  • The Prototype Fast Breeder Reactor (PFBR), which reached core loading in 2024, exemplifies India’s progress toward developing thorium-based nuclear power.   

What are the Major Challenges Hindering India’s Nuclear Energy Growth? 

• Uranium Supply Constraints: One of the most pressing challenges confronting India is the restricted availability of indigenous uranium reserves, which significantly hinders the uninterrupted functioning of its nuclear reactors.  
  • India has an estimated 76,000 tonnes of domestic uranium reserves, which is not enough to sustain the expanding fleet of Pressurised Heavy Water Reactors (PHWRs).  
    • Consequently, India is dependent on imports to fulfill its uranium requirements, with primary suppliers including Australia, Kazakhstan, and Canada. 
  • Also, geopolitical instabilities, volatile global pricing, and logistical impediments have the potential to disrupt the supply chain, which may adversely affect reactor operations.  
• Technological Bottlenecks in Thorium Utilization: India’s ambitious three-stage nuclear program hinges on thorium-based reactors, but progress in the second and third stages remains stunted.  
  • Though India possesses approximately 846,000 tonnes of thorium reserves, constituting roughly 25% of the global total, the current utilization remains relatively low.  
    • The Fast Breeder Reactors (FBRs), essential for transitioning to thorium, have faced consistent technological bottlenecks.   
  • Meanwhile, India’s Accelerator-Driven Subcritical System (ADSS), proposed in 2003, has not yet materialized, delaying the shift to thorium.  
• Financial and Regulatory Barriers: The initiation of nuclear power generation facilities necessitates considerable financial investment, extended timelines, and intricate infrastructural requirements.  
  • Financial constraints have hindered the advancement of projects like the upgrades to the Kakrapar and Kudankulam plants. 
    • According to the CEA (Central Electricity Authority), the capital cost of a PHW nuclear power plant in India is about INR 117 million. 
  • The high initial costs and uncertain returns discourage private sector investment in nuclear energy, leading to a preference for renewable energy projects that offer quicker returns.  
  • Moreover, India's regulatory framework, though thorough, is often criticized for its sluggishness and complexity.  
    • Delays in obtaining approvals, particularly for land acquisition and environmental clearances, can extend project timelines. 
    • For instance, the Jaitapur Nuclear Power Project, which aims to be the world’s largest nuclear facility, has faced delays due to regulatory challenges and local opposition. 
  • Also, the strict liability laws in India, particularly the Civil Liability for Nuclear Damage Act of 2010, are a major deterrent for foreign technology suppliers. 
• Shortage of Skilled Workforce: India’s nuclear sector is facing a critical shortage of skilled professionals, including engineers, scientists, and technicians, worsened by limited training opportunities and the impending retirement of experienced staff.  
  • Institutions like Bhabha Atomic Research Centre (BARC) have limited intake capacity, and expanding the workforce to meet upcoming projects remains challenging.  
    • This expertise gap threatens operational efficiency and hinders expansion efforts. 
  • Also, India's brightest minds in the nuclear field are often lured by more lucrative opportunities abroad, particularly in countries with established and expanding nuclear programs like the US, France, and China. 
• Environmental and Waste Management Issues: Nuclear waste management continues to be a challenging issue for India's nuclear power sector.   
  • While India has established systems for handling nuclear waste, including on-site storage followed by long-term storage, the lack of centralized waste repositories remains a concern.   
  • India's nuclear plants store waste for five to seven years before transferring it to storage facilities, but the long-term management of spent fuel is still unresolved. 
    • The 2010 Mayapuri radiation incident in Delhi highlighted critical gaps in nuclear waste control outside of regulated sites. 
  • As per the World Nuclear Waste Report 2019, no country currently has a fully operational final disposal site for nuclear waste.  
    • Finland is the only country that is currently constructing a permanent repository. 
• Safety Concerns and Public Distrust: Despite robust safety protocols, the public perception of nuclear power remains a significant barrier.   
  • India’s nuclear industry has mostly operated outside International Atomic Energy Association (IAEA) safeguards, with only four nuclear plants under specific facility agreements. 
  • Incidents like the Fukushima disaster (2011) have heightened global concerns about nuclear safety, contributing to resistance in some regions.   
  • While radiation levels in India’s plants remain well below global safety thresholds, the public remains wary.   
    • For example, Kudankulam’s radiation levels have dropped from 0.081 micro-sieverts in 2014 to 0.002 micro-sieverts, but this has not entirely alleviated public apprehension over nuclear safety, complicating land acquisition and community support. 

What Measures can India take to Accelerate Nuclear Energy Growth? 

• Facilitating Private Sector Participation: India should amend the Atomic Energy Act, 1962, to allow private sector participation in reactor operations, ensuring stringent regulatory safeguards.   
  • Private investment can accelerate technological innovation, reduce project delays, and unlock funding for large-scale projects. 
    • The government's plan to end the state monopoly and allow private firms in uranium mining and nuclear power generation marks a significant shift in the sector. 
  • A hybrid development model, combining government oversight with private expertise, would fast-track projects like Bharat Small Modular Reactors (BSMR).   
• Enhancing Domestic Uranium Exploration: To address the uranium supply shortage, India should ramp up domestic uranium exploration and expedite mining projects.   
  • The recent re-discovery in Jaduguda Mines in Jharkhand offers an opportunity to boost reserves for nuclear reactors.   
  • By deepening ties with countries like the US, Russia, and France, India can secure long-term supply contracts and benefit from shared research on next-generation nuclear technologies.   
    • These partnerships will enable faster adoption of Small Modular Reactors (SMRs) and accelerate capacity building in the nuclear sector.  
• Establishing Strategic Reserves for Nuclear Fuel: To mitigate the risks of supply chain interruptions due to geopolitical factors, India needs to create a strategic reserve of nuclear fuel.  
  • By strengthening partnerships with nations like Russia, Kazakhstan, and Canada through Civil Nuclear Cooperation Agreements, India can secure a stable supply of uranium over the long term.  
  • Additionally, India should prioritize investments in advanced nuclear fuel-cycle technologies, particularly thorium utilization, taking advantage of its abundant domestic thorium resources to align with the nation's long-term sustainability and energy goals. 
• Reforming Regulatory Framework for Project Approvals: India needs to reform the Atomic Energy Regulatory Board (AERB) to streamline the approval process for nuclear projects without compromising safety standards.   
  • Establishing an independent National Nuclear Energy Authority (NNEA) with clear mandates for reactor approvals, safety monitoring, and collaboration with state governments would reduce bureaucratic delays.  
  • By establishing a single-window clearance system, India can reduce delays and improve project turnaround times, ensuring that the 100,000 MW target by 2047 is met without further setbacks. 
• Enhancing Nuclear Workforce Capabilities: Building a skilled workforce for India’s nuclear sector necessitates the integration of the Skill India Mission with specialized training programs offered by institutions like BARC and other institutions.  
  • These programs, focused on advanced nuclear technologies, reactor operations, and waste management, would help address workforce shortages while improving safety compliance.  
  • Additionally, collaborations with international organizations, such as those under the International Atomic Energy Agency (IAEA) agreements, can further strengthen technical expertise in the sector. 
• Leveraging AI and Digital Twins for Reactor Operations: India can integrate Artificial Intelligence (AI) and Digital Twin technology to monitor and optimize reactor performance in real time but should be backed with stringent cybersecurity measures.  
  • AI can predict maintenance needs, detect anomalies, and improve operational safety, reducing risks of human error.   
  • Digital Twins—virtual models of reactors—can simulate operations, allowing for predictive analysis and efficient training of operators.  
    • The Tarapur Atomic Power Station (TAPS) reactors located in Maharashtra, have commenced pilot trials of digital twin technologies. 
• Managing Nuclear Waste Management Systems: India should set up a centralized facility for nuclear waste management to ensure the sustainable handling of spent fuel.  
  • Although current practices involve on-site storage and long-term disposal, a more comprehensive approach focused on waste reuse and recycling is essential for long-term sustainability. 
    • India can learn from Finland's Onkalo repository that is a leading model of a deep geological storage facility. 
  • Investments in advanced reprocessing technologies will reduce environmental risks and improve public acceptance of nuclear energy. 
• Promoting Public Awareness and Community Engagement: To enhance public awareness and address opposition, the government should initiate widespread campaigns focusing on the safety, advantages, and environmental sustainability of nuclear energy.  
  • Actively involving local communities in discussions, sharing transparent safety data, such as Kudankulam’s safety track record, and offering incentives like subsidized electricity or funding for local development projects can help mitigate resistance.  
    • Building trust through open communication and fostering strong partnerships with communities will be crucial in gaining support and accelerating project approvals. 
• Thorium Valley Development Model: Like Silicon Valley, India can create a “Thorium Valley”, a dedicated innovation zone in coastal Andhra or Kerala (thorium-rich regions).  
  • This would integrate research institutes, reactor prototypes, startups, and thorium mining industries into one cluster.  
  • A special economic and regulatory regime for this zone could fast-track India’s thorium fuel cycle.

Conclusion 

India's nuclear energy sector holds significant promise for the nation's sustainable growth and energy security. By addressing key challenges, fostering private sector participation, and leveraging technological advancements, the country can unlock its full nuclear potential. With strategic reforms and a focus on innovation, India can pave the way for a robust and clean energy future (SDG 7), driving economic growth and contributing to global climate goals. The coming years will be crucial in shaping the trajectory of India's nuclear energy sector, and proactive measures will be key to realizing its ambitious targets.

Drishti Mains Question

India is set to expand its nuclear energy capacity significantly by 2047. Examine the potential of nuclear energy in India’s growth. What are the major challenges and how can they be addressed?

UPSC Civil Services Examination Previous Year Question (PYQ)

Prelims

Q. In India, why are some nuclear reactors kept under “IAEA safeguards” while others are not? (2020)

(a) Some use uranium and others use thorium   

(b) Some use imported uranium and others use domestic supplies   

(c) Some are operated by foreign enterprises and others are operated by domestic enterprises   

(d) Some are State-owned and others are privately owned  

Ans: (b)

---

Mains

Q. With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy. (2018)