Budget 2025: Government to generate 100GW nuclear power by 2047
What's the story
Finance Minister Nirmala Sitharaman has announced a plan to set up 100 gigawatts (GW) of nuclear power capacity by 2047.
The initiative, unveiled in the Union Budget for FY26, focuses on the development of small modular reactors (SMRs).
The proposal comes in line with the government's wider focus on energy security and its pledge to ramp up non-fossil fuel power capacity.
Funding details
Budget allocates ₹20,000 crore for nuclear energy mission
Sitharaman has also earmarked ₹20,000 crore for a Nuclear Energy Mission for the research and development of SMRs.
The aim is to operationalize at least five indigenously developed SMRs by 2033, the Finance Minister added.
This is part of the government's plan to actively involve the private sector in meeting its nuclear energy targets.
Legislative changes
Atomic Energy Act, Civil Liability for Nuclear Damage Act amendments
The Finance Minister also announced proposed amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act.
These legislative changes are part of the government's strategy to facilitate private sector participation in its nuclear energy goals.
The amendments aim to create a conducive legal and policy environment for final investment decisions in this sector.
Expert opinions
Industry experts laud government's nuclear power development push
Anujesh Dwivedi from Deloitte India hailed the budget announcement as a much-needed boost for nuclear power development in India.
"The ₹20,000 support for setting-up of 5 SMR projects by 2033 will act as a catalyst for creating the much-needed ecosystem, while the country adds 80 GW of thermal generation capacity by 2032 to meet the sharp growth in electricity demand in the interim," he said.
Project impact
₹20,000 crore support for SMR projects seen as catalyst
Dwivedi further noted that the ₹20,000 crore support for setting up five SMR projects by 2033 will serve as a catalyst in creating an essential ecosystem.
This comes as India plans to add 80 GW of thermal generation capacity by 2032 to meet the rising electricity demand.
Nangia Andersen's Suddhasatta Kundu also emphasized that these proposals will promote domestic manufacturing and create opportunities for private-sector investment in the nuclear segment.
Maritime fund
Sitharaman announces Maritime Development Fund with ₹25,000 crore corpus
Apart from developing nuclear power capacity, Sitharaman also announced a Maritime Development Fund with a corpus of ₹25,000 crore.
The government will contribute 49% to this fund which seeks to distribute support and promote competition in the maritime sector.
This move is part of a larger plan to strengthen India's position in the global shipbuilding market and boost domestic production.