Can Ambani, Adani help India become a nuclear energy superpower?

Earlier this year, in the hushed confines of Nuclear Power Corporation of India’s (NPCIL) headquarters in Mumbai, a unique meeting of India’s best corporate minds was underway. In attendance was a formidable assembly of top executives from Adani, Reliance, Tata, Jindal, Vedanta and the country’s top nuclear scientists. The agenda? To make India a global nuclear energy superpower.This a marked departure from the earlier stance, as India, for long, has been hesitant to embrace nuclear energy at scale. Now the country is charging ahead with one of the world’s most ambitious nuclear expansion plans — to achieve 100 gigawatt (GW) nuclear capacity by 2047. That’s more than a tenfold increase from the current 8GW. This is also a major step that will help India achieve net zero by 2070.What makes India’s fresh nuclear power push different is that it is no longer solely the purview of the governments and elite institutions. Private enterprises are now entering the arena. Regulatory frameworks are being fundamentally reshaped. Groundbreaking reactor designs are moving from laboratory concepts to tangible prototypes.“The world is watching,” observes Kris Singh, CEO of Holtec International, a US-based nuclear technology firm collaborating with Indian entities. “India isn’t merely catching up, it also possesses the potential to surpass the rest of the world.”A new beginningIndia’s nuclear dream dates back to 1969, when its first nuclear power plant in Tarapur, Maharashtra, was set up. Since then, nuclear power has mostly stayed in the shadows, contributing just 3% of the country’s electricity capacity, despite a proven safety record and a powerful energy potential.Things are changing now.Union minister Jitendra Singh recently announced in Parliament that India’s nuclear generation capacity has jumped from 22,480MW to over 35,000MW in a decade. Operational reactors now span across 25 units, from Tamil Nadu to Rajasthan. The government has approved the simultaneous construction of 10 new reactors and created a dedicated Nuclear Energy Mission with a massive ₹20,000 crore budget outlay.The most noteworthy change is the entry of big-ticket private capital.For the first time, private companies are being allowed to invest in nuclear power, starting with Bharat Small Reactors (BSRs), the 220MW indigenously developed Pressurised Heavy Water Reactors (PHWRs). The state-run NPCIL will own and operate the plants, while the industry will provide capital and in return receive electricity for captive use or sell excess power at a pre-agreed tariff.With a tariff of roughly ₹5 per MWh, nuclear power compares favourably with renewable energy sources, especially once the costs of storage solutions necessary for their intermittency are included. “The Tarapur Atomic Power Station Units 1 & 2 are producing power at a mere 92 paise per unit. The recently added Kudankulam Nuclear Power Plant Unit 1 further contributes to this competitive landscape, selling its electricity for little over ₹3 per unit,” according to NPCIL.The opening up of the atomic energy sector to private sector investments comes 20 years after the stalled India-US deal aimed at promoting nuclear power and energy security.“The response has been overwhelming,” says Bhuwan Chandra Pathak, NPCIL chairman and managing director. “We are looking at nearly 50% of the 100GW capacity to come from private partnerships.” medium120403522The Naveen Jindal Group has announced the launch of Jindal Nuclear Power, backed by an ₹1.8 lakh crore investment over the next two decades and aiming for an 18GW nuclear capacity. The Vedanta Group, under Anil Agarwal’s leadership, has also expressed its intent by seeking bids from global companies to establish a 5GW nuclear power plant. Adani Group chairman Gautam Adani recently visited the Tarapur Atomic Power Station. According to reports, the company’s long-term vision includes a 30GW nuclear capacity. Furthermore, Reliance Industries has also announced its entry into the nuclear power sector.Tata Power, Vedanta, Adani, Reliance and Jindal have already set up internal teams and scouted project locations. Even the Indian Railways is getting involved, exploring nuclear energy to power its massive network.Meanwhile, state-run power producer NTPC is aggressively pursuing nuclear power expansion, with a target of 30GW capacity addition by 2034. As a key step, the company recently issued tenders seeking global partners for the development of large nuclear reactors totalling 15GW in capacity.International players too are circling. In a breakthrough, the US cleared Holtec’s small modular reactor (SMR) technology for deployment in India, in partnership with Tata Consulting Engineers and L&T.To realise its nuclear dream, India is betting big on indigenous technology.The commissioning of the first 700MW PHWR in Kakrapar, Gujarat, in 2023 marked a major milestone. India has now fully mastered the design and deployment of these mid-sized reactors, which will be the backbone of its near-term expansion.Even more exciting is the rise of the Prototype Fast Breeder Reactor (PFBR) in Kalpakkam, Tamil Nadu. Capable of multiplying the use of uranium fuel and tapping into India’s vast thorium reserves, the PFBR is the lynchpin of the country’s visionary three-stage nuclear programme first conceived by Homi Bhabha.Next comes the SMRs and BSMRs — Small Modular Reactors and Bharat Small Modular Reactors. With an eye on flexibility, quick deployment and grid stability, India plans to commission five indigenously built SMRs by 2033. These smaller units can be factory-fabricated and transported, enabling plug-and-play deployment near industrial zones.Safety first, doubts laterPublic concerns over nuclear safety haven’t vanished but India is addressing them head-on. NPCIL says it is unfair to blame nuclear power as perennially unsafe by citing a few accidents that have globally happened in the entire history of nuclear power plant operations.For context, there have been two major reactor mishaps in the history of civil nuclear power — Chernobyl (Ukraine, 1986) and Fukushima (Japan, 2011). Chernobyl involved an intense fire without provision for containment, and Fukushima severely tested the containment, allowing some release of radioactivity.Experts say new nuclear power reactors are generally designed to be safer than older ones. New reactors mostly have fewer components, making them simpler to operate and maintain, thereby reducing the potential for human error or equipment failures. They also have sophisticated monitoring systems that detect equipment or operator failures early on, allowing for prompt corrective actions.Meanwhile, the existing plants in India are doing better. Radiation levels at sites like Kudankulam have fallen dramatically over the past decade. Outreach efforts, interactive site tours, seminars, school programmes are now part of NPCIL’s strategy to build trust.Union minister Singh informed Parliament that India’s nuclear power reactors have reported no radiation leakage or damage. In over 55 years of nuclear power operations, there has been no accident or breach of radiation limits set by the Atomic Energy Regulatory Board (AERB). medium120403540Nuclear plants are equipped with area radiation monitors inside buildings and environment radiation survey monitors outside, ensuring continuous safety checks. An independent Environmental Survey Laboratory (ESL) monitors air, water, soil, crops and seafood for radioactivity in a 30km radius around each plant.Occupational safety is strictly enforced. Workers in radiation zones use protective gear, follow regulated procedures, and wear dosimeters to track exposure, which is kept well within AERB-prescribed limits. Extensive health surveys of plant workers, their families and nearby residents conducted by reputed medical institutions and analysed by Tata Memorial Hospital found no adverse health effects linked to nuclear plant operations.“Safety is non-negotiable,” says NPCIL chief Pathak. “Our rule is simple: safety first, production next.”Legal reforms also are underway to boost investor confidence.Nuclear power in India is currently regulated under the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. They are being reworked to balance accountability with investor protection. As the government looks to involve the private sector, amendments to these laws are in progress. At present, all nuclear reactors are under state control due to security and safety concerns.The industry is awaiting the final details of these amendments, which are set for discussion in Parliament. The parliamentary committee on power has stressed the need for strict adherence to safety protocols, waste management and radiation protection to minimise risks.A task force within the Department of Atomic Energy is reviewing necessary changes to the Atomic Energy Act, including whether private entities can build and operate nuclear plants. Another task force is focused on revising the Civil Liability for Nuclear Damage Act to address concerns from private suppliers.Enhanced safety features are being integrated into new plants, particularly those using the BSR design, which will reduce the exclusion zone radius from 1km to 500 metres. The parliamentary committee also recommended establishing a clear contractual framework that ensures safety, security, and accountability in nuclear energy projects.The roadblocksFor India to fully realise its nuclear energy ambitions, it must address a range of issues raised by private investors. The recent discussions at the NPCIL HQ, mentioned in the beginning of the story, highlighted the complexities involved. This three-hour meeting, which included leading industry figures and nuclear scientists, focused not only on the potential of nuclear power but also on the operational hurdles that could slow down progress.A key concern raised by private players was the Civil Liability for Nuclear Damage Act, which mandates financial responsibility in the event of a nuclear accident. The law places a substantial burden on operators, a major roadblock for private investment. Additionally, the high operational and maintenance costs of nuclear plants are a significant concern as they could erode profitability.Companies also sought more control over the plants they will invest in, pointing out that current regulations give NPCIL full control. NPCIL operates 25 reactors across seven sites, with a target of adding 15GW by 2032.So, what’s there on the table for the private sector as of now?Well, most companies are eyeing nuclear plants as a way to repurpose old thermal plant sites where operations have ceased. The idea is to replace these defunct thermal units with nuclear installations and use the power generated for captive consumption.The meeting at the NPCIL HQ was the first official talks on the matter, and it drew considerable interest from the companies eager to explore the opportunity. Many participants shared their enthusiasm but also voiced concerns. With the policy framework still in the works, it’s clear that this will be a slow-moving process, one that will take time to crystallise. medium120403565Industry players are also pushing for financial mechanisms like viability gap funding and power purchase agreements to help cover the high upfront costs of nuclear plants. These mechanisms, commonly used in the renewable energy sector, could provide more stability for investors.Uranium availability is another challenge. India imports most of its uranium due to the low quality of domestic ore. While the government has assured that there will be adequate fuel supplies, both imported and domestic, concerns about fuel security remain.“There are adequate fuel provisions, both through indigenous as well as imported means, to support the existing and planned nuclear power programme,” Pathak assures.Meanwhile, experts like Anil Kakodkar, chancellor at the Homi Bhabha National Institute, suggest that India could shift to a combination of uranium and thorium, leveraging the country’s abundant thorium reserves. Additionally, the used fuel could be recycled to create additional capacity, enhancing the sustainability of India’s nuclear energy future.Fuel supplies for power generation have been a matter of concern.In the past, India’s thermal power sector has repeatedly grappled with coal shortages, triggering power outages and straining the grid. These supply crunches have been driven by a combination of factors — surging electricity demand, supply-chain bottlenecks and volatility in global coal prices.There have been instances when coal reserves at 100 power plants dipped below the critical 25% threshold, with more than 50 plants seeing stocks falling under 10%. Such alarming deficits have forced several states to urgently request additional supplies from Coal India, the country’s primary coal producer.Adding to the problem are fluctuations in the international coal market, especially rising prices in Indonesia and disruptions in coal imports, which have further squeezed the availability of coal and increased costs.The cost factorTo be sure, nuclear power is expensive upfront. But over time, it pays off.Building a Bharat Small Reactor costs about ₹15 crore per megawatt, compared with less than ₹10 crore for other energy types. But nuclear offers something few others can: consistent, low-carbon, 24x7 baseload power.And costs are coming down. The latest 700MW PHWRs have been built at globally competitive rates, according to NPCIL. Operating and maintenance costs are stable. And under the proposed model, companies can sell surplus power, giving them a potential revenue stream beyond their own usage.As mentioned earlier, operators will have the autonomy to sell any surplus power. Industry experts suggest that to provide greater clarity and enable investors to accurately evaluate the potential return on their investment, the expected price at which this excess power can be sold should be disclosed upfront.The road aheadReaching a nuclear capacity of 100GW by 2047 is a tall order. It will require more than 50 new reactors (big and small), seamless public-private partnerships, legal reform and regulatory clarity, fuel security through imports and thorium utilisation and unwavering public confidence in safety.But the trajectory is clear.From just 4.78GW in 2014 to over 8.8GW today and a pipeline of 21 reactors totalling 15GW under construction, India’s nuclear momentum is building. The expansion is gaining momentum. Eight reactors totalling 6,600MW, including the Prototype Fast Breeder Reactor, are at various stages of construction and commissioning. Additionally, 10 more reactors with a combined capacity of 7,000MW are in the pre-project phase.All projects are expected to be completed progressively by 2031-32, pushing India’s total installed nuclear capacity to an estimated 22,480MW.As Singh from Holtec puts it, a “nuclear energy renaissance” is underway where India is the central character.