During her Budget 2025-26 speech, Union Finance Minister Nirmala Sitharaman emphasized the nation’s energy transition, stating that Budget 2025-26 expands nuclear energy push as a key component of future growth. She set a goal of generating at least 100 GW of nuclear energy by 2047 as part of the Nuclear Energy Mission for Viksit Bharat. Although installed nuclear capacity increased from 4.78 GW in 2014 to 8.18 GW in 2024, nuclear energy currently makes up barely 2% of India’s energy mix.

The Department of Atomic Energy‘s (DAE) Minister of State, Jitendra Singh, stated that a considerable increase is necessary to reach the 2047 target, as the estimated capacity for 2031–2032 is 22.48 GW. He credited previous nuclear energy growth to collaborations with Public Sector Undertakings (PSUs), increased financing, bulk reactor approval, and minimal private sector involvement. Sitharaman further declared that a research and development fund of Rs 20,000 crore would be used to build at least five SMRs (small modular reactors) in India by 2033.

Push for Private Investment and Legal Amendments

Sitharaman suggested amending the Atomic Energy Act and the Civil Liability for Nuclear Damage Act (CLNDA) to expedite the growth of nuclear energy, possibly permitting increased private-sector involvement. While the CLNDA creates a no-fault liability scheme to compensate victims of nuclear catastrophes, the Atomic Energy Act of 1962 currently limits nuclear exploration and development to government-controlled businesses. By guaranteeing minimum compensation standards in the event of accidents, the act also brings India into compliance with the Convention on Supplementary Compensation for Nuclear Damage.

The quest for private investment has persisted; according to reports from early 2024, India requested $26 billion from firms such as Vedanta, Tata Power, Adani Power, and Reliance Industries. In order to reach the 100 GW target, the state-run Nuclear Power Corporation of India Ltd. (NPCIL) must continue to contribute to this investment, which was allocated to build 11 GW of nuclear capacity by 2040. Notwithstanding these advancements, in 2025–2026, the DAE and NPCIL budget allocations were cut by Rs 402 crore and Rs 472 crore, respectively.

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Expert Concerns Over Safety and Renewables

Budget 2025-26 expands nuclear energy initiatives, positioning them as essential for clean energy growth. However, experts have raised concerns about cost-effectiveness, safety, and waste management. Harjeet Singh, the founding director of the Satat Sampada Climate Foundation, warned that nuclear energy poses significant economic and security risks. He advocated for a stronger focus on proven renewable sources like solar and wind, which he described as safer, more affordable, and better for decentralized energy security.

While renewable energy still faces challenges, Arvind Poswal, Programme Officer for Renewable Energy at the Centre for Science and Environment, questioned the long-term emphasis on nuclear energy. He suggested that the government could have prioritized policies to enhance renewable energy transmission, support agriculture-based renewable initiatives, or boost funding for existing clean energy programs instead of focusing on a distant 2047 target.

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