India’s Minister for Finance, Nirmala Sitharaman, has announced ambitious plans for nuclear energy development in the 2024-25 Federal Budget, signaling a major shift in the country’s energy strategy. The government intends to collaborate with the private sector to research, develop, and deploy Small Modular Reactors (SMRs), in nuclear power generation.
SMRs, which can produce up to 300 MWe of power each, offer several advantages over traditional nuclear plants. They can be factory-built, are more mobile and adaptable, and can be installed in locations unsuitable for larger reactors. This flexibility aligns with India’s goal of increasing its nuclear power capacity from 7.48 GW to 22.28 GW by 2031.
The finance minister emphasized nuclear energy’s importance in achieving “Viksit Bharat” (Developed India), allocating funds from a ₹1 trillion R&D budget to support this initiative. This move is part of India’s broader strategy to balance growing energy needs with environmental responsibilities, including its pledge to achieve net-zero carbon emissions by 2070.
The budget also highlighted advancements in thermal power technology, including the development of advanced ultra-supercritical thermal power plants. The government plans to support the establishment of an 800 MW commercial plant based on this technology, promising improved efficiency in thermal power generation.
Furthermore, the government intends to transition from energy efficiency targets to emission targets and facilitate the adoption of an Indian carbon market model. This approach aims to create a domestic carbon trading system, incentivizing businesses to reduce their carbon footprint.
To enable private sector participation in nuclear energy, the government is reviewing the Atomic Energy Act of 1962. , India’s state-run power generation company, has already formed a joint venture with Nuclear Power Corp. of India Ltd and plans significant investments in nuclear power capacity over the next decade.
These initiatives reflect India’s commitment to a diverse and sustainable energy future. By embracing nuclear energy, enhancing thermal power efficiency, and establishing a carbon market, India aims to position itself at the forefront of clean energy innovation while addressing energy security concerns. The focus on research and development in the nuclear sector, coupled with private sector involvement, is expected to accelerate India’s progress towards a more sustainable energy landscape.
Meanwhile, Tata Consulting Engineers headquartered in Mumbai, has been working on various power projects and has an 85 per cent market share in nuclear engineering services. It has been connected to India’s Department of Atomic Energy for many years.
Amit Sharma, managing director and CEO of Tata Consulting Engineers, said, “We are going to take the old design of the PHWR and then reconfigure and redesign it to be modular, scalable and safety-aligned to post-Fukushima standards.”
“To be honest, the only viable long-term solution for net zero is nuclear. I think nuclear is the bet; globally, everybody recognizes it,” he added.
