India's nuclear power push to 100 GW by 2047 hinges on reforms, funding

A government panel says India needs Rs 19 trillion investment, policy clarity, and private participation to reach its 2047 target of 100 GW nuclear capacity

India has set an ambitious target to ramp up nuclear power generation capacity to 100 Gigawatt (GW) by 2047, implying a tenfold expansion in just over two decades. This translates into an average annual capacity addition of around 4.14 GW.

 

With a current operational capacity of only 8.8 GW, the plan forms part of India’s broader effort to achieve net-zero emissions by 2070. However, experts say the nuclear expansion programme faces major challenges related to fuel procurement, financing, and legislative restrictions.

 

“For any meaningful decarbonisation, there is no better option than nuclear for base load. It requires public policy support for long-term financing. Any meaningful participation of private sector in nuclear will require certainty in critical areas like fuel supply and a proper legal and policy framework,” said Alok Kumar, former power secretary.

 

Legislative and procedural delays

According to a high-level government committee formed to draft an implementation roadmap, constructing a Nuclear Power Plant (NPP) in India can take 11–12 years due to delays in state approvals, land acquisition, and quality assurance clearances.

 

The panel, in its report titled Road Map for Achieving the Goal of 100 GW of Nuclear Capacity by 2047, suggested allowing pre-project studies during the land acquisition phase to expedite approvals and increasing the number of quality inspectors.

 

It also recommended amending the Atomic Energy Act, 1962, to allow any company registered under the Companies Act, 2013, to apply for a licence to produce and use atomic energy. At present, only central public-sector undertakings and their joint ventures are permitted to construct and operate nuclear plants. The panel said private players could bring capital, efficiency, and innovation to the sector.

 

Fuel procurement remains a key constraint

India uses Uranium-235 as fuel, employing natural uranium in Pressurised Heavy Water Reactors (PHWR) and enriched uranium in Pressurised Water Reactors (PWR). Currently, over 70 per cent of uranium demand for the country’s 8.8 GW capacity is met through imports, while domestic sources supply only about 2.4 GW worth of uranium requirements.

 

For 100 GW capacity, India will need a robust fuel procurement strategy. The committee projected that by 2047, the country would require an additional 8,029 tonnes of natural uranium and 1,045 tonnes of enriched uranium annually.

 

Domestic uranium mining and processing costs are three to four times higher than global averages due to poor ore quality. The panel recommended expanding domestic mining with advanced technology, acquiring overseas mines, boosting fuel fabrication, diversifying imports, and maintaining strategic stockpiles. It also stressed adopting a policy for reprocessing spent fuel to ensure energy security.

 

High cost of nuclear power

Financing remains one of the biggest challenges. Building an NPP requires substantial upfront investment, long gestation periods, and high risk, which make securing funds difficult. According to the committee, India will need investments of about Rs 19 trillion to achieve 100 GW capacity.

 

The current levelised cost of electricity from nuclear power is higher than that from renewables such as solar and wind. The cost of PHWR reactors is around Rs 15–16 crore per MW, translating to a levelised tariff of Rs 6 per kilowatt-hour (kWh). For PWR reactors, the cost is around Rs 6–6.60 per kWh, compared to solar power’s Rs 3 per kWh.

 

“As compared to other technologies, the levelised cost of electricity in case of nuclear power is very high. The basic problem is that the supply chain of nuclear power plants has been either very dominated by the Chinese or the Russian players or non-existent. And that has driven costs up,” said Jarand Rystad, founder and chief executive officer of Rystad Energy.

 

Policy and tariff reforms

To address cost challenges, the committee suggested reducing the goods and services tax (GST) on nuclear islands from 18 per cent to 12 per cent, which would lower overall project costs by about 3 per cent and tariffs by around 20 paise per kWh.

 

The panel also proposed increasing the normative plant load factor (PLF) from 72.5 per cent to 80 per cent, adopting fleet mode procurement for multiple reactors, and introducing tariff-based competitive bidding to improve efficiency and lower costs.