Nuclear sector needs strategy, skilled manpower to reach 100 GW by 2047

Revision in insurance policies, fuel-buying plans, and lack of skilled manpower among issues flagged for the industry

Even as the Union Cabinet cleared the much-awaited Atomic Energy Bill 2025 last week, experts feel that India’s nuclear industry also requires significant reforms, including revision in insurance policy, fuel procurement strategies and creation of skilled manpower, to reach the 100 gigawatt (Gw) target by 2047.

 

At present, the Indian Nuclear Insurance Pool (INIP) provides ₹1,500 crore as nuclear operator and supplier liability under the Civil Liability for Nuclear Damage (CLND) Act 2010.

 

The capacity of INIP will have to be ramped up as more players enter the industry, according to a high-level government committee set up by the power ministry. The panel will draft an implementation roadmap for increasing nuclear power in India.

 

It has also suggested insurance cover for hot zone assets, which are assets within nuclear reactor zones, for private operators to transfer their risk to insurance companies. At present, property insurance for nuclear installations is made available for only cold zone assets or assets outside the nuclear reactor zone.

 

“Unless the facilities are not fully insured, lenders will be sceptical. The ability to seek proper insurance cover of the nuclear plants and the assets is extremely important. Because the sector was closed so far, the capability of organisations that have had commercial interest in the sector is limited,” said Anujesh Dwivedi, partner, Deloitte India.

 

Managing the supply of nuclear fuel would be another key challenge to meet the 100 Gw target, added experts.

 

India uses uranium-235 as nuclear fuel, employing natural uranium in pressurised heavy water reactors (PHWRs) and enriched uranium in pressurised water reactors (PWRs).

 

Currently, over 70 per cent of uranium demand for the country’s 8.8 Gw nuclear capacity is met through imports, while domestic sources supply only about 2.4 Gw worth of uranium requirements.

 

The government panel said India would need to augment uranium supplies and have commensurate processing and fabrication capabilities to meet the 100 Gw target.

 

Dwivedi suggested substantial mixing of thorium in nuclear fuel as India has good reserves of the chemical element.

 

“There have also been reports of development of Advanced Nuclear Energy for Enriched Life (ANEEL) fuel, a mix of uranium and thorium. Its testing has also been under consideration. If that happens successfully, the uranium requirement of existing reactors can be moderated,” he added.

 

Securing significant funding for nuclear projects and reducing project timelines, which are currently around 11-12 years, are other key challenges faced by India’s nuclear sector. 

Towards 100 Gw capacity

• The capacity of INIP will have to be ramped up as more players enter the industry
• Insurance cover for hot-zone assets for private operators has also been suggested
• Managing supply of nuclear fuel would be another key challenge
• India would need to augment uranium supplies and have commensurate processing and fabrication capabilities