Current Affairs | Vajirao & Reddy

Context: In March 2025, IAEA Director General Rafael Mariano Grossi praised India’s nuclear sector for being one of the most dynamic globally.
India is increasing its cooperation with the IAEA on nuclear technology, safety, and security.

KEY HIGHLIGHTS

Global Recognition: Grossi highlighted India's growing role in nuclear energy, especially in Asia. India is collaborating closely with the IAEA on safety, technology, and regulations.
Diplomatic Engagements: External Affairs Minister S. Jaishankar met Grossi during the Raisina Dialogue 2025, discussing nuclear safety and non-proliferation, highlighting India’s role in nuclear diplomacy.
Workforce Development: India’s efforts in training nuclear experts were praised, with the IAEA collaborating with India’s Department of Atomic Energy (DAE) and the Global Centre for Nuclear Energy Partnership (GCNEP) to build a skilled workforce, including the launch of a new Nuclear Engineering Course.
Raisina Dialogue 2025: The dialogue showcased India’s growing importance in global nuclear discussions.

BUDGETARY FOCUS Union Budget 2025-26: Nuclear Energy in India’s Future

Objective: Strengthening nuclear capabilities as part of the long-term energy strategy for a sustainable and developed India (Viksit Bharat). The government aims to increase nuclear power capacity to 100 GW by 2047.

Key Budget Highlights:

Nuclear Energy Mission: ?20,000 crore allocated for Small Modular Reactors (SMRs) R&D with the goal of building five indigenous SMRs by 2033.
Policy Reforms: Amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act to encourage private sector involvement.
Private Sector Partnerships: Collaborations on Bharat Small Reactors (BSRs) and SMRs, focusing on cost-effective energy solutions for industries like steel and aluminum.

INDIA’S NUCLEAR CAPACITY EXPANSION

Objective: Increase nuclear power from 8,180 MW to 22,480 MW by 2031-32.
New Projects: 10 new reactors in Gujarat, Rajasthan, Tamil Nadu, Haryana, Karnataka, and Madhya Pradesh. Notable project: Kovvada Plant (6 x 1208 MW) in Andhra Pradesh in partnership with the USA.
Recent Developments:
- Rajasthan Atomic Power Project Unit-7 (RAPP-7) achieved criticality in September 2024.
- Prototype Fast Breeder Reactor (PFBR) made significant progress, achieving milestones in March 2024.

NUCLEAR POWER PLANTS IN INDIA

STRATEGIC FOCUS AREAS

Energy Security: Nuclear power as a long-term energy solution.
Environmental Sustainability: Integrating nuclear energy with renewables to reduce carbon emissions.
Private Sector Role: Expanding private sector participation through public-private partnerships.
Technological Innovation: Developing advanced reactors like SMRs and PFBR to enhance India’s position in global nuclear energy.

REGULATORY LANDSCAPE

Atomic Energy Act, 1962: Grants exclusive government authority over nuclear energy.
Atomic Energy Regulatory Board (AERB): Regulates safety and compliance in nuclear facilities.
Civil Liability for Nuclear Damage Act, 2010: Caps liability at ?1,500 crore, with government backing.

SIGNIFICANCE OF NUCLEAR ENERGY

Current Contribution: Nuclear energy accounts for 1.6% of India’s energy generation.
Energy Diversification: Reduces reliance on coal (55% of India’s energy mix).
Climate Change Mitigation: Nuclear energy is a low-carbon source, supporting India’s net-zero emissions target by 2070.
Reducing Import Dependence: Helps reduce reliance on imported fossil fuels (e.g., 85% crude oil, 50% natural gas).

KEY ISSUES IN INDIA’S NUCLEAR SECTOR

Limited Share in Energy Mix: Nuclear still contributes only 1.6% of India’s total energy.
Investment Challenges: High capital cost and long timelines for nuclear projects.
Dependence on Imported Nuclear Fuel: Limited domestic uranium reserves lead to reliance on imports.
Safety Concerns: Public opposition due to safety fears (e.g., Fukushima incident).
Technological Delays: Delays in projects like the Prototype Fast Breeder Reactor (PFBR).
High Cost: Nuclear energy has higher capital costs compared to renewable energy sources.
Waste Management: India lacks a permanent radioactive waste disposal system.

MEASURES TO REVAMP INDIA’S NUCLEAR SECTOR

Enhancing Private Sector Participation: Amend the Atomic Energy Act, 1962 to allow private sector involvement in reactor operations.
Expanding Indigenous Technology: Focus on developing technologies like Fast Breeder Reactors and Small Modular Reactors (SMRs).
Streamlining Land Acquisition: Integrate the Right to Fair Compensation and Transparency in Land Acquisition Act, 2013 for easier land acquisition.
Strategic Nuclear Fuel Reserves: Secure long-term uranium supplies through agreements with countries like Russia, Kazakhstan, and Canada.
Fast-Tracking Regulatory Approvals: Reform the Atomic Energy Regulatory Board (AERB) and establish the National Nuclear Energy Authority (NNEA) for quicker regulatory approvals.
Sovereign Green Bonds: Issue green bonds to attract international investment in nuclear energy projects.
Skill Development: Expand training programs at BARC and other institutions for reactor operations, R&D, and waste management.
Local Manufacturing: Integrate nuclear energy into Make in India and Production Linked Incentive (PLI)
Promoting SMRs: Develop Small Modular Reactors to meet decentralized energy needs, especially in remote areas.
International Technology Transfer: Pursue agreements with countries like USA, Japan, and South Korea for advanced reactor designs.

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India's Nuclear Sector from Vajirao & Reddy Institute