Context:

• India plans a massive expansion of nuclear power capacity—from 8,180 MW to 100 GW by 2047—backed by major policy reforms.
• The SHANTI Act (2025) marks a structural shift by ending the monopoly of the Department of Atomic Energy, allowing private (and potentially foreign) participation in building, owning, and operating nuclear plants.
• It also strengthens regulation by giving statutory status to the Atomic Energy Regulatory Board and revises liability laws to attract investment, replacing earlier laws like the Atomic Energy Act (1962) and CLNDA (2010).
• However, achieving the 100 GW target will depend on effective implementation—especially timely framing of rules, regulatory clarity, and alignment with the reform-oriented vision of the Act.

Driving India’s Energy Transition: Growth, Net Zero, and the Role of Power Mix

• Twin Drivers: Viksit Bharat & Net-Zero Goals
  • India’s energy reforms are guided by two key goals: becoming a developed nation (Viksit Bharat) by 2047 and achieving net-zero emissions by 2070.
  • Economic development will increase dependence on electricity over traditional fuels like coal, firewood, and fossil fuels.
  • India’s per capita electricity consumption (1,418 kWh) is far below China, the US, and OECD averages—highlighting the need for massive expansion.
  • Currently, only one-fifth of total energy consumption is electricity, indicating a major transition ahead.
• Current Energy Mix: Capacity vs Reality
  • As of June 2025, India’s installed power capacity is 476 GW, with nearly 50% from non-fossil sources.
  • Renewable capacity stands at 227 GW (solar, wind, hydro, bioenergy), while nuclear is 8.8 GW and thermal (mainly coal) is 240 GW.
  • India aims to reach 500 GW renewable capacity by 2030.
• The Generation Gap: Renewables vs Thermal
  • Installed capacity does not equal actual power generation.
  • In 2024–25:
    • Total generation: 1,824 TWh
    • Thermal: 75% of generation
    • Renewables: 22%
    • Nuclear: 3%
  • Despite equal capacity share, renewables underperform due to dependence on sunlight, wind, and seasonal factors.
• Baseload Challenge & Storage Constraint
  • Thermal and nuclear power provide stable baseload electricity, unlike intermittent renewables.
  • Scaling renewables requires large investments in energy storage systems.
  • Due to these constraints, renewable expansion is slowing, with ~40 GW projects stuck without power-purchase agreements (PPAs).
• The Core Challenge Ahead
  • India must simultaneously:
    • Expand electricity access and consumption for development
    • Decarbonise power generation for climate goals
  • This requires balancing renewables, nuclear, and storage solutions while ensuring reliable and affordable power supply.

India’s Nuclear Power Path: Capacity Expansion, Costs, and Future Options

• Rising Power Needs & Role of Nuclear Energy
  • India may need over 2,000 GW of electricity capacity to achieve Viksit Bharat levels.
  • Renewables like solar and wind are highly land-intensive (≈10× more than thermal) and intermittent.
  • With coal incompatible with net-zero goals, nuclear power emerges as the preferred baseload solution.
• Evolution of India’s Nuclear Programme
  • India’s first reactor began operations in Tarapur (1969).
  • Currently, NPCIL operates 24 reactors with about 8,780 MW capacity.
  • Reactor mix includes:
    • Boiling Water Reactors (BWRs) – oldest
    • VVER (PWR) reactors at Kudankulam (Russian design)
    • Pressurised Heavy Water Reactors (PHWRs) – dominant and indigenised
  • PHWR designs have evolved from 220 MW to 540 MW and 700 MW, showing strong domestic capability.
• Cost Advantage & Investment Challenge
  • India’s 700 MW PHWR costs ~$2 million/MW, among the lowest globally.
  • To add 90 GW nuclear capacity, India needs over $200 billion (₹18 lakh crore).
  • Such scale is not feasible without private and foreign investment, despite steady public funding.
• Stalled Large-Scale Projects
  • Approval for 10 × 700 MW reactors (fleet mode) was granted in 2017, but progress is slow.
  • Major proposed projects:
    • Jaitapur (Maharashtra) – 6 × 1,650 MW (French EDF design)
    • Mithi Virdi (Gujarat) & Kovvada (Andhra Pradesh) – 6 × 1,000 MW each (US/Japanese designs)
  • These imported designs are costlier (~$5 million/MW) and remain under consideration for years.
• Small Modular Reactors (SMRs) & Industrial Demand
  • Government has allocated ₹20,000 crore to develop indigenous SMRs (5–200 MW) by 2033.
  • Industries with captive power plants (steel, cement, petrochemicals, data centres) show growing interest in nuclear options.
  • Existing 220 MW PHWRs can act as reliable, scalable units for faster deployment.

Three-Front Strategy for Scaling Nuclear Power in India

• Indigenisation of Large Reactor Technologies
  • Foreign designs (EdF, Westinghouse) are new and costly; indigenisation is needed to reduce costs.
  • China’s example shows that building a domestic supply chain can lower costs to below $2 million per MW.
• Advancing Indigenous R&D (SMRs and Thorium)
  • The DAE should accelerate research on Small Modular Reactors (SMRs), especially molten-salt designs.
  • Focus on Thorium-based technologies using HALEU as an alternative to breeder reactors.
  • This can enable early utilisation of India’s thorium reserves.
• Scaling Indigenous PHWRs for Industrial Use
  • The 220 MW PHWR model can be modularised for captive industrial power plants.
  • Indian private sector firms already have design, fabrication, and construction capabilities.
  • Requires suitable financing models due to high upfront costs and long operational life (60 years).
  • Exclusion zone norms need modification for single-unit captive reactors.

Conclusion

• The SHANTI Act seeks to clearly separate strategic and defence-related nuclear activities from civilian power generation.
• Its success depends on transparent rules addressing key issues such as tariffs, fuel ownership, waste management, liability, dispute resolution, and establishing an independent regulator.