India has set an ambitious goal to reach 100GW of nuclear power capacity by 2047, but high capital costs remain a hurdle compared to cheaper renewable energy. Investors are monitoring whether the government's recent legislative changes and fiscal support can make the sector financially viable for private players.
India has set an ambitious roadmap to reach 100 gigawatts (GW) of nuclear power capacity by 2047. This expansion is designed to enhance energy security, support the rising demand from industrial sectors like data centers and artificial intelligence, and meet long-term net-zero goals. With the current installed capacity at approximately 8.78 GW, achieving this scale will require a massive ramp-up in infrastructure and investment.
The legislative framework for this growth was significantly updated with the passage of the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act in December 2025. This act aims to modernize the legal landscape and clear the path for private sector participation, which was previously limited. By addressing concerns around liability and project structure, the government is attempting to invite corporate interest into a field that has historically been exclusive to public sector entities.
However, the primary challenge for investors and the government is economic. Developing 100 GW of capacity is expected to require investments in the range of ₹23–25 lakh crore. Beyond the sheer capital outlay, nuclear power faces a stiff challenge from the renewable energy sector, where costs have fallen rapidly. Data from the Central Electricity Authority indicates that nuclear energy tariffs currently range between ₹7.77 and ₹7.88 per unit, depending on the plant type. In contrast, recent tenders for round-the-clock renewable power have secured rates near ₹5.25 per unit, creating a significant price gap.
This cost difference creates an 'offtake conundrum' for new projects. Distribution companies (discoms), which buy power to supply to consumers, may be reluctant to sign long-term power purchase agreements (PPAs) for expensive nuclear energy when cheaper, reliable renewable alternatives are available. Without a stable and affordable long-term buyer, the financial model for private nuclear projects remains risky.
To bridge this gap, market observers expect that the government may need to provide structural fiscal support. This could include tax concessions on components, long-term low-interest financing, or mechanisms to absorb potential cost overruns during the lengthy construction phases typical of nuclear facilities. Furthermore, the focus has shifted toward the potential of Small Modular Reactors (SMRs). These smaller, factory-built reactors are seen as a potential way to lower capital costs and speed up deployment timelines, which could improve the overall financial profile of the sector.
For investors, the near-term progress of this 100GW target will depend on several key factors. The market will be watching for the government’s approach to tariff determination and any specific fiscal packages designed to incentivize private entry. Additionally, the execution of the pilot projects and the adoption rate of SMR technology will be important indicators of whether nuclear power can effectively compete in India’s evolving energy mix.