The Indian government has made a significant move in its energy sector with the announcement of a ₹20,000 crore Nuclear Energy Mission in the Union Budget 2025. This initiative aims to develop Small Modular Reactors (SMRs), a new-age nuclear technology that could revolutionize the country’s power generation.
Budget Allocations and Financial Concerns
The Department of Atomic Energy (DAE) has been allocated ₹24,049 crore for the 2025-26 financial year, with an expected expenditure of ₹24,450 crore by March 2025. However, this allocation is lower than the actual spending of ₹25,882 crore in 2023-24, raising concerns about the sufficiency of funds for India’s nuclear expansion. Despite the ambitious plan to operationalize at least five SMRs by 2033, the budget documents do not specify dedicated funding for these reactors, leaving uncertainty about their financial backing.
The Vision Behind the Nuclear Energy Mission
The ₹20,000 crore Nuclear Energy Mission was introduced by Finance Minister Nirmala Sitharaman as part of India’s long-term energy strategy. The mission is aligned with the country’s goal of achieving 100 GW of nuclear energy capacity by 2047 and contributes to India’s commitment to net-zero carbon emissions by 2070.
To attract foreign and private investments in the nuclear sector, the government plans to amend key laws such as the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010. These amendments are expected to make India’s nuclear industry more investment-friendly by easing regulatory barriers and facilitating international collaborations.
Bharat Small Reactors and Bharat Small Modular Reactors
As part of this mission, India is working on two categories of small nuclear reactors:
– Bharat Small Reactors (BSR) – Modified versions of India’s existing Pressurised Heavy Water Reactors (PHWRs), designed for greater efficiency and adaptability.
– Bharat Small Modular Reactors (BSMR) – A newer technology being researched globally, aimed at providing scalable and safer nuclear power solutions.
What Are Small Modular Reactors (SMRs)?
Small Modular Reactors (SMRs) are advanced nuclear reactors with a power capacity of up to 300 MW(e) per unit—roughly one-third of traditional nuclear reactors. Their modular nature allows for factory-based manufacturing, making them easier to deploy in remote locations.
Key benefits of SMRs:
– Lower Costs – Smaller designs require less investment than full-scale reactors.
– Enhanced Safety – Advanced safety features reduce risks compared to traditional reactors.
– Scalability – Multiple SMRs can be installed gradually based on energy demand.
Understanding the Legal Framework
India’s nuclear sector is governed by two major laws:
1. The Atomic Energy Act, 1962
– Regulates nuclear energy development and use for peaceful purposes.
– Grants the government control over uranium and thorium mining and research activities.
– Allows the government to designate specific areas as restricted for nuclear-related activities.
2. The Civil Liability for Nuclear Damage Act, 2010
– Establishes liability in case of nuclear accidents.
– Holds nuclear operators strictly liable for damages up to ₹500 crore.
– Any additional damages (up to 300 million Special Drawing Rights, approximately ₹2,100 crore) must be covered by the central government.
– Operators must secure insurance or financial security before running a nuclear facility.
Future of India’s Nuclear Energy
India’s Nuclear Energy Mission marks a bold step toward cleaner energy and reduced reliance on fossil fuels. However, funding gaps, regulatory hurdles, and safety concerns must be addressed for successful implementation. With advancements in nuclear technology and international cooperation, India’s nuclear power sector is set to play a crucial role in shaping the country’s energy future.
