India plans to launch five small modular reactors (SMRs) by 2033 to reduce its reliance on coal-fired power. With over $2 billion allocated, this initiative focuses on both electricity generation and industrial hydrogen production. The move represents a significant expansion of the nation's nuclear capacity, which currently stands at 8.8 gigawatts.
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India is advancing its energy transition strategy by targeting the deployment of at least five small modular reactors (SMRs) by 2033. This initiative is designed to complement the country's existing power infrastructure while reducing long-term dependence on coal, which currently fuels a large portion of India’s electricity generation.
Diverse Reactor Designs for Power and Industry
Atomic Energy Minister Jitendra Singh confirmed that the Bhabha Atomic Research Centre is currently working on three distinct reactor designs. These include 220-megawatt and 55-megawatt capacity units primarily aimed at adding to the national grid. Furthermore, the research body is developing a compact gas-cooled reactor with a capacity of under 5 megawatts, which is intended to provide industrial heat for hydrogen production. The use of pressurized water reactor technology is expected to be a key feature for the larger grid-connected units.
Government Investment and Private Sector Participation
The government has earmarked over $2 billion for this nuclear development program. This capital spending is part of a broader objective to decarbonize heavy industries that have historically relied on fossil fuels. A notable change in policy occurred last year when the administration allowed private sector firms to participate in the construction and operation of atomic energy projects. This opening is intended to support the national goal of increasing nuclear capacity eleven-fold to 100 gigawatts by 2047.
Scaling Nuclear Infrastructure
Currently, India operates 8.8 gigawatts of nuclear capacity, which is managed by the state-owned Nuclear Power Corp of India. This entity is projected to increase its own capacity to 54 gigawatts by 2047, while private and other state-run firms are expected to fulfill the remainder of the 100-gigawatt target. The port city of Visakhapatnam has been identified as a candidate site for the first SMR project specifically dedicated to producing carbon-free hydrogen.
For investors, the long-term impact of this sector shift will depend on the successful execution of these complex technological projects and the ability of private players to navigate regulatory and safety requirements. The speed at which these reactors move from the design phase to commercial operation, along with the availability of private funding for such capital-intensive projects, will be important factors to track in the coming years.