Springboard 2026: Why India's 100GW nuclear dream hinges on small modular reactors.

India’s nuclear energy sector has ushered in the new year with a new commitment, resolve, and imagination. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, presents a paradigm shift in the architecture of the civil nuclear energy sector for multiple reasons.

• It opens up the sector for participation by the private sector, state-owned public sector undertakings (PSUs) and state government entities, besides the Centre, its entities, and central PSUs.

• It acknowledges the crucial role of an empowered regulator in a market shifting from a monopoly to multiple players.

• It is sensitive to the special characteristics of the nuclear energy sector, wherein certain technologies and functions, such as enrichment beyond threshold limits, heavy water production, spent fuel management, high-level radioactive waste management, and isotopic separation must arguably remain with the sovereign.

• It anticipates possible developments and requirements for this new market structure to operate by establishing the Atomic Energy Redressal Advisory Council and the Appellate Tribunal.

• It retains the citizen-centric values and essence of the now-repealed Acts by seamlessly integrating the extant related provisions of the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, within its ambit.

India's power demand

Currently, the country's installed nuclear power capacity is 8.78 gigawatts (GW), which accounts for approximately 3% of the annual electricity generation of 1,830 billion units in 2024-25. The overall electricity requirement is expected to increase three to four times the current level by 2047. To meet this demand, the installed capacity of intermittent renewables (solar and wind) is expected to increase about nine times. To enable integration of variable renewables into the grid, both base load capacity as well as energy storage capacity would need to be increased significantly.

Nuclear power can provide reliable base load capacity, and also has one of the lowest lifecycle greenhouse gas emissions among all electricity generation technologies. According to the NITI Aayog estimates, India will require 100GW of nuclear power capacity by 2047 and 200-300GW capacity by 2070.

Over the past eight decades, nuclear power reactor technology has evolved from generation I to generation II, III, III+, and IV technologies. Three key generation II technologies—pressurized light water reactor (PWR/ LWR), pressurized heavy water reactor (PHWR) and boiling water reactor (BWR)—constitute most of the currently installed commercial nuclear power capacity worldwide. The scientific development of higher-generation reactors (III, III+, and IV) has resulted in three major trends.

First, the existing technologies, such as PWR, PHWR, and BWR, have been strengthened with advanced features such as passive safety features, better fuel efficiency, longer design lifetimes, etc.

Second, new technologies such as the high-temperature gas-cooled reactor, molten salt reactor, etc. are being developed. Third, the physical configuration of the reactor system is diversifying from large to small and micro modular reactors.

India’s current nuclear energy portfolio comprises 6.46GW of PHWR reactors, 2GW of PWR reactors, and 0.32GW of BWR reactors. In its journey to 100GW, the choice of technology would almost certainly be influenced by the global technological advancements discussed above. It implies that the technology mix of 100GW capacity is likely to be a mosaic of different reactor technologies and sizes.

The SMR solution

Budget 2025-26 envisioned developing and operationalizing at least five indigenous small modular reactors (SMRs) by 2033 with an allocation of ₹20,000 crore. SMRs are advanced reactors that can be factory assembled and deployed on site either as a single unit or as multi-module plant. They typically comprise designs based on generation III, III+, or IV reactors. Globally, more than 80 designs are in different stages of design, development and licensing.

Countries such as the US, France, Japan, China, Russia, South Korea, Canada, Czechia, South Africa, the UK, and Argentina are actively pursuing SMRs and targeting their deployment by 2030 to 2035. Russia and China have operational SMRs. The Bhabha Atomic Research Centre (BARC) has initiated development of three SMR designs—200 MW(e) Bharat Small Modular Reactor (BSMR-200), 55 MW(e) Small Modular Reactor (SMR-55), and 5 MW(th) High Temperature Gas Cooled Reactor (HTGCR-5).

The BSMR-200 aims to repurpose thermal power plants and establish captive power plants in energy-intensive hard-to-abate industries such as steel, cement, aluminium, etc. The SMR-55 is being developed to supply electricity to remote and off-grid areas. The HTGCR-5 is for hydrogen generation. However, two challenges need to be addressed for India to leapfrog into these new technologies—cost competitiveness and domestic supply chain.

Based on initial estimates, the cost of BSMR-200 is estimated at ₹30 crore/MW(e), and SMR-55 around ₹64 crore/MW(e). Similarly, the cost of HTGCR-5 is estimated at ₹64 crore/MW(th). For a comparative perspective, the cost of an indigenous PHWR large reactor is ₹15 crore/MW(e), and the cost of an imported PWR large reactor is about ₹30 crore/MW(e). It is necessary to manufacture and deploy SMRs in fleet mode to reduce their cost. Since they are modular and factory-fitted, it is anticipated that their costs will decline significantly due to economies of scale and a shorter gestation period.

Furthermore, India has a well-developed indigenous manufacturing ecosystem for large PHWRs. This industrial capability needs to be leveraged and further strengthened for manufacturing SMRs. Critical equipment and components such as special steel and heavy forgings for reactor pressure vessel, coolant pumps, heat exchangers, control rod drive mechanisms, control and instrumentation systems, etc. are within the reach of Indian manufacturing capability. With necessary handholding, India should also fully leverage its capability and supply chain in nuclear propulsion to develop a domestic ecosystem for SMRs.

The role of private sector

The private sector has been participating in the manufacturing of equipment and the construction of nuclear power plants. However, going forward, achieving the goal of 100GW nuclear power capacity by 2047 requires the private sector's active partnership in the complete nuclear energy value chain, including building, owning and operating nuclear power plants and nuclear fuel fabrication. Hence, it is imperative that a strong bridge is established between the Department of Atomic Energy (DAE) and the private sector for technology transfer, quality assurance and certification and implementing learnings on safety, security, and safeguards.

The space sector provides a useful model, wherein restructuring of the sector was carried out by creating two new entities—Indian National Space Promotion and Authorisation Centre (IN-SPACe)and NewSpace India Ltd (NSIL)—to support the private sector. Restructuring the atomic energy sector along these lines may be explored.

Another key element of India’s SMR strategy should be active collaboration with global peers such as the US, South Korea, and Russia. India should become a partner of choice in the global SMR value chain, both in terms of design capability as well as supply-chain prowess. The 2024 memorandum of understanding, signed between the Nuclear Power Corporation of India Ltd (NPCIL) and the Emirates Nuclear Energy Company (ENEC) of the United Arab Emirates (UAE) for cooperation in the operations and maintenance of the Barakah Nuclear Power Plant, is a testament to the expertise of Indian engineers and scientists in this domain.

The SHANTI Act has laid down the necessary foundation for the Indian industry to become a global player in nuclear energy.

The views are personal.

V.K. Saraswat is a member, Manoj Kumar Upadhyay is deputy adviser, and Vipul Gupta is a consultant at NITI Aayog.