India targets 100 GW of nuclear power by 2047, but high construction costs remain a hurdle. ReNew Energy Global CEO Sumant Sinha highlights that unless these expenses are reduced, nuclear energy will struggle to compete with coal in the price-sensitive Indian power market.
India has set an ambitious target to reach 100 GW of nuclear power capacity by 2047, representing a massive ten-fold increase from the current level of less than 10 GW. While this expansion is crucial for the country’s shift toward cleaner energy, industry leaders are pointing to significant economic barriers that could slow down progress. During the Bloomberg New Economy Forum 2026, ReNew Energy Global Chairman and CEO Sumant Sinha emphasized that high costs related to Engineering, Procurement, and Construction (EPC) are the primary challenge for the sector.
The Cost Barrier to Nuclear Growth
Building nuclear plants is capital-intensive, with estimates suggesting that developing a single gigawatt of nuclear capacity requires between ₹15,000 crore and ₹20,000 crore. These costs often exceed initial budgets, leading to financial pressure on projects. The Central Electricity Authority has projected that reaching the 100 GW goal will require a total investment of ₹15 lakh crore. Because nuclear projects take several years to complete, managing these costs is essential for investors and developers who operate in a market where electricity prices are highly monitored.
Competition with Coal and Renewables
In the Indian power sector, price sensitivity remains a key factor. Distribution companies, which buy power for the public, often prioritize the lowest-cost options. While coal-based power has historically been cheaper and reliable, solar and wind energy have seen significant cost reductions over the last decade. Nuclear energy is valued for its ability to provide stable base-load power, which means it can run consistently unlike solar or wind that require sunlight or wind to operate. However, for nuclear power to replace coal effectively, it must become more competitive. Without standardized project execution and efficiency gains, it remains difficult for nuclear to match the affordability of other energy sources.
Future Outlook for Investors
As India balances its goal of reaching carbon neutrality with the need for affordable electricity, the pressure to optimize nuclear project economics is expected to grow. Investors and sector observers will be tracking whether the government introduces new policies to lower these costs, such as promoting smaller, modular reactor designs or streamlining the approval processes to avoid project delays. The ability of the sector to attract private capital will depend on demonstrating that nuclear energy can provide reliable power without requiring massive cost overruns. The long-term viability of the 100 GW target will likely hinge on technological improvements and faster, more predictable construction timelines.