Union Finance Minister Nirmala Sitharaman kickstarted private sector participation in civil nuclear development by announcing a Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of ₹20,000 crore and to operationalise five indigenously developed SMRs by 2033.

''India will develop at least 100 gigawatts (GW) of nuclear energy by 2047, which is essential for our energy transition efforts. For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up'', she said in her Union Budget 2025-’26 speech.

Currently, the public sector Nuclear Power Corporation of India (NPCIL)—the sole authority in India allowed to set up and run civil nuclear plants—operates 24 nuclear power reactors at seven sites with an installed capacity of 8180 MW (8.18 GW). India plans to set up private sector SMRs of 220 MW Bharat Small Reactors (BSR) for captive use. NPCIL had recently invited Request for Proposals from Indian industries for setting up 220 MW BSRs for captive use. The last date for receipt of the RFP proposal is March 31, 2025.

The world is moving towards setting up such SMRs. Compared to large nuclear plants which are 800 MW and above and take 4-5 years of construction time, BSRs offer flexibility in siting and deployment, shorter construction timelines and are cost-effective. BSRs are 220 MW Pressurised Heavy Water Reactors with safety and performance records and are tailored for captive use.

Nuclear energy is expected to have a significant share in India’s electricity mix by 2047. The medium-term target is to triple nuclear power generation capacity by 2030 from the current 8.1GW by 2030. In the Union Budget 2024-25, the FM had announced allowing BSRs with private capital, within the existing legal framework and approved business models.

''The vision of achieving 100 GW of nuclear energy by 2047, through active public-private partnerships and the removal of civil nuclear liability, reflects India’s commitment to its energy transition goals'', said N Venu, MD & CEO - India & South Asia, Hitachi Energy.

The Nuclear Energy Mission, with a ₹20,000 crore investment in SMRs, will support clean baseload power, further reducing dependence on fossil fuels, said Manish Dabkara, Chairman and Managing Director, EKI Energy Services and President Carbon Markets Association of India. ''The government's commitment to amending laws to enable private sector participation in nuclear energy opens up new investment channels for clean energy projects'', he said.