The Union Finance Minister, Smt. Nirmala Sitharaman, presented the Union Budget for the financial year 2026-27, which incorporates a substantial allocation for nuclear energy projects. Having closely observed her budget presentations over the past nine years, one must acknowledge her remarkable consistency and determination. Her distinctive practice of reiterating the same policy initiatives across successive budgets is particularly noteworthy.
As detailed in the official budget documents, in her most recent presentation, the Finance Minister announced an ambitious plan to achieve 100 gigawatts (GW) of nuclear power generation capacity by 2047. The Government has resolved to establish a dedicated Nuclear Energy Mission, with a specific focus on the research and development of small modular reactors (SMRs), supported by an allocation of Rs 20,000 crore. Furthermore, the budget envisages the commissioning of at least five indigenously developed small nuclear power plants by 2033.
Evidence of the Finance Minister’s steadfast commitment can be readily observed by examining the budget documents pertaining to the financial years 2025-26 and 2024-25, wherein identical announcements are reiterated with minimal, if any, modifications. The principal advancement during this interval has been the amendment of the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, to facilitate private sector participation in nuclear power generation—measures that were initially proposed in earlier budgets. Consequently, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, has been enacted into law.
Prior to these legislative changes, government representatives had engaged with prominent private entities, including those associated with General Electric and Adani Power, to encourage their participation in the construction of small modular reactors. However, these companies exhibited limited interest, primarily due to the deterrent effect of the existing civil liability framework governing nuclear accidents, which had hitherto discouraged private capital from entering the sector. The enactment of the SHANTI Act has now eliminated this significant impediment (though critics contend that it effectively grants greater protection—or “peace”—to suppliers by constraining liability exposure).
International experience with small modular reactors presents a contrasting perspective. Although governments frequently promote these smaller nuclear facilities as superior alternatives to conventional large-scale plants, empirical studies demonstrate that such assertions are predominantly unsubstantiated. Independent research consistently reveals that modular reactors tend to incur higher costs per unit of electricity generated and produce greater volumes of radioactive waste relative to traditional nuclear power plants.
A pertinent example is the project involving six small reactors, each with a capacity of 77 MW, which were planned in Idaho, United States, but subsequently abandoned owing to substantial cost escalations. Likewise, the Vogtle nuclear power plant in Georgia, United States—a 2,200 MW facility under construction—has experienced construction costs per megawatt that exceed initial estimates by approximately 250%. Numerous small reactors constructed in the United States have been decommissioned prematurely on account of their economic unviability. It is evident that the pronounced escalation in construction costs associated with small modular reactors will inevitably result in correspondingly elevated electricity generation tariffs.
With regard to radioactive waste management, designs based on modular reactors offer no substantial advantages over conventional models, as substantiated by rigorous analyses conducted by nuclear energy experts Professor M.V. Ramana and Dr. Xia Mian. They observe: “The total amount of plutonium produced in such plant models is much higher than that in light water reactors. Most importantly, the plutonium concentration in spent fuel is about 6-7 times higher than that in light water reactors.
“In addition, the fundamental concerns inherent to nuclear energy—namely, grave safety risks, potential linkages to nuclear proliferation, and the persistent challenge of managing long-lived radioactive waste—remain unmitigated in the context of small modular reactor deployment.
Notwithstanding these well-documented challenges, the Government of India is actively pursuing measures to enable large-scale capital investment in the nuclear energy sector, including meaningful participation by the private sector. The underlying rationale is clear: influential global actors have advocated for the revitalisation of the nuclear industry, which has experienced prolonged stagnation over recent decades. A comprehensive understanding of this sectoral stagnation and the concomitant advocacy for a “nuclear renaissance” may be gained through reference to the World Nuclear Industry Status Report. The introduction of the SHANTI Act in the Indian Parliament, along with the attendant parliamentary deliberations, constitutes merely an extension of this prevailing international policy trajectory.
