<h2>Background</h2>
<p>In the <strong>2025‑26 Budget</strong>, Finance Minister <strong>Nirmala Sitharaman</strong> announced an ambitious target: raise India’s installed nuclear capacity from <strong>8,180 MW</strong> to <strong>100 GW</strong> by <strong>2047</strong>. To realise this, the government fast‑tracked the <span class="key-term" data-definition="Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act — a 2025 legislation that opens India’s nuclear power sector to private participation and revises liability rules (GS2: Polity)">SHANTI Act</span>, which repealed the 1962 <span class="key-term" data-definition="Atomic Energy Act — the original law governing all nuclear activities in India, placing them under the exclusive control of the Department of Atomic Energy (GS2: Polity)">Atomic Energy Act</span> and the 2010 <span class="key-term" data-definition="Civil Liability for Nuclear Damage Act — law that defines liability for nuclear accidents, previously limiting private investment (GS2: Polity)">CLNDA</span>.
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<h3>Key Developments (December 2025)</h3>
<ul>
<li>Private companies can now <em>build, own and operate</em> nuclear power plants.</li>
<li>The <span class="key-term" data-definition="Atomic Energy Regulatory Board — the statutory regulator for nuclear safety and security in India (GS2: Polity)">AERB</span> gains statutory status, enhancing oversight.</li>
<li>Liability framework revised to attract domestic and foreign investors.</li>
<li>Repeal of the 1962 <span class="key-term" data-definition="Atomic Energy Act — the original law governing all nuclear activities in India, placing them under the exclusive control of the Department of Atomic Energy (GS2: Polity)">Atomic Energy Act</span> and 2010 <span class="key-term" data-definition="Civil Liability for Nuclear Damage Act — law that defines liability for nuclear accidents, previously limiting private investment (GS2: Polity)">CLNDA</span>.</li>
</ul>
<h3>Important Facts</h3>
<p>• As of June 2025, India’s total generation capacity stood at <strong>476 GW</strong>, with <strong>50 % non‑fossil</strong> (renewables 227 GW + nuclear 8.8 GW).<br>
• Renewable generation contributed <strong>403 TWh</strong> (22 % of total 1,824 TWh), while thermal (coal) supplied <strong>75 %</strong> of electricity.
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<p>• Nuclear’s share was only <strong>3 %</strong> of generation despite <strong>1.8 %</strong> of capacity, reflecting its baseload role.
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<p>• To meet the <span class="key-term" data-definition="Viksit Bharat — the vision of a fully developed India by 2047, the 100‑year anniversary of independence (GS1: History)">Viksit Bharat</span> goal, total capacity must exceed <strong>2,000 GW</strong>.
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<p>• Current nuclear fleet: <strong>24 plants</strong> (NPCIL) totalling <strong>8,780 MW</strong>. Designs include <span class="key-term" data-definition="Pressurised Heavy Water Reactor — India’s indigenous reactor type using heavy water as moderator and natural uranium as fuel (GS3: Economy)">PHWR</span> (220‑700 MW), <span class="key-term" data-definition="Boiling Water Reactor — a reactor where water boils inside the core to generate steam directly (GS3: Economy)">BWR</span>, and Russian VVERs.
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<h3>UPSC Relevance</h3>
<p>The shift from a state‑monopoly to a mixed‑ownership model touches on <strong>GS2: Polity</strong> (legislative reforms, regulatory autonomy) and <strong>GS3: Economy</strong> (energy security, investment climate, net‑zero commitments). Understanding the liability changes and the role of the <span class="key-term" data-definition="Atomic Energy Regulatory Board — the statutory regulator for nuclear safety and security in India (GS2: Polity)">AERB</span> is crucial for questions on governance of strategic sectors. The nuclear‑energy push also links to climate‑change targets (net‑zero by 2070) and the broader energy‑mix strategy, a frequent GS3 theme.</p>
<h3>Way Forward</h3>
<ul>
<li><strong>Indigenise foreign designs</strong> (EDF, Westinghouse) to achieve cost parity with China’s <$2 million/MW> reactors.</li>
<li>Accelerate R&D for <span class="key-term" data-definition="Small Modular Reactors — compact nuclear reactors (typically < 300 MW) that can be factory‑built and deployed faster, crucial for decentralised power and UPSC energy security topics (GS3: Economy)">SMRs</span>, especially molten‑salt and thorium‑based concepts.</li>
<li>Develop financing models that balance high upfront capital with low‑cost long‑term operation (e.g., public‑private partnerships, sovereign guarantees).</li>
<li>Revise exclusion‑zone rules to allow single‑unit captive reactors for industries with high power demand.</li>
<li>Finalize tariffs, fuel‑ownership, waste‑management and insurance frameworks to provide regulatory certainty.</li>
</ul>
<p>Only with clear rules, robust financing and a domestic supply chain can the <span class="key-term" data-definition="Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act — a 2025 legislation that opens India’s nuclear power sector to private participation and revises liability rules (GS2: Polity)">SHANTI Act</span> deliver the promised <strong>100 GW</strong> nuclear capacity and support India’s <span class="key-term" data-definition="Viksit Bharat — the vision of a fully developed India by 2047, the 100‑year anniversary of independence (GS1: History)">Viksit Bharat</span> and net‑zero aspirations.</p>
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