Private sector likely to play a key role in nuclear power road map

The Union Government is formulating a comprehensive national nuclear energy mission, which was announced in the 2025-26 Union Budget, aiming to install 22 gigawatt (GW) of nuclear power capacity by 2032 and 100 GW by 2047. The current nuclear power capacity is 8.8 GW. 

The capacity expansion plan involves setting up nuclear power plants across states through joint ventures between the Nuclear Power Corporation of India Ltd (NPCIL) and the private sector and amending several laws, it is learnt. 

A consultative process is underway, led by NITI Aayog along with NPCIL, involving state energy ministers as nodal points to ensure alignment with state-level energy priorities. 

India acknowledges that not all energy demand can be met through renewables, making residual emissions inevitable—these will be offset through carbon sinks like afforestation and carbon capture. “To ensure reliable base-load power for industries, we need to prioritise nuclear energy, targeting an addition of 100 GW to gradually replace coal,” a senior government official said.

“A detailed road map is also being modelled with the help of all rural district bodies, on the lines of the critical minerals and hydrogen missions,” the official said. 

Given the long gestation period—around eight years per nuclear plant, compared to four–five years for thermal and two years for renewable projects—and the high capital expenditure, the mission will require coordination across departments and ministries, including Atomic Energy, Power, Science & Technology (DST), New and Renewable Energy (MNRE), and Industry Promotion (DPIIT). While NITI Aayog currently anchors the initiative, inter-ministerial coordination is expected to deepen in the coming months, according to people in the know. 

Queries sent to the ministries of Atomic Energy, Power, MNRE, DST, DPIIT, NITI Aayog, and NPCIL remained unanswered at press time. 

The mission also calls for major policy and legal reforms, including amendments to the Electricity Act, safety regulations, and liability norms. “Who bears the liability in case of a radiation incident—the plant operator, supplier, or state—is a critical policy issue being addressed,” an industry executive involved in early consultations said. 

To implement the Nuclear Energy Mission, the Union Budget mentioned that amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act will be taken up by the parliament to encourage private sector investments in nuclear power projects. 

Although MNRE is not actively involved at this stage, a senior official clarified that it may participate if discussions touch on solar integration and grid balancing, such as reducing coal thermal output to a technical minimum of 55 per cent during peak solar hours. 

Early-stage consultations have reportedly begun with Power, DST, and DPIIT, focusing on grid management, technological feasibility, and industrial readiness. The government is also exploring the potential of Small Modular Reactors (SMRs), with ₹20,000 crore allocated in the Union budget to develop at least five indigenously designed SMRs by 2033. 

An official, who is confident about surpassing India’s 500 GW targets through non-fossil fuel sources or renewable energy by 2030 because of fresh bids for already issued additional over 250 GW and ongoing projects, said, “In the long term, we cannot rely on a single technology. While solar power is currently among the cheapest electricity sources, it faces limitations—particularly in meeting peak or night time demand, and in its intermittent nature.” 

Additionally, the sector must remain open to future technological disruptions, the official said, citing an example. “For instance, SMRs (Small Modular Reactors) offer clean, firm power, and if they become cost-competitive—especially compared to solar plus battery energy storage systems (BESS)—they could play a significant role in the energy mix.” 

India has already secured uranium supplies for the next five years via a government-to-government (G2G) deal with Kazakhstan, but widespread deployment of nuclear plants will require addressing concerns over radiation risks, along with strong coordination with states and private players, which is being discussed and deliberated, the industry executive said. 

“NPCIL will serve as the implementing agency, working closely with state governments and facilitating private sector participation. The policy will define how ownership is structured—whether NPCIL holds a majority stake or the private sector takes the lead,” they said. 

The nuclear mission is positioned as a critical pillar of India’s strategy to meet rising energy demand, transition from fossil fuels, and achieve net zero emissions by 2070—while also supporting its aspiration to become a developed nation by 2047.