Why It’s in News
- The Indian government is opening up Small Modular Reactors (SMRs) for private sector participation.
- Companies like Reliance Industries, Tata Power, and Adani Power have expressed interest in developing SMR-based projects.
- This comes amid legislative and regulatory tweaks to facilitate private investment in nuclear energy.
- The initiative is aimed at boosting India’s nuclear manufacturing ecosystem, ensuring energy security, and reducing reliance on conventional fossil fuels.

Relevance :
- GS II – Governance & Policy: Regulatory frameworks for private sector participation in strategic sectors, legislative reforms enabling nuclear investment, and international cooperation in nuclear technology.
- GS III – Energy & Infrastructure: Nuclear energy policy, SMR deployment, integration with renewables, and energy security through low-carbon electricity.
- GS III – Environment & Climate Change: Contribution of SMRs to low-carbon energy, reduction of fossil fuel dependence, and alignment with climate goals.
- GS III – Science & Technology: Advanced nuclear reactor technologies (PHWR, LWR, SMR), R&D initiatives, and pilot projects in collaboration with domestic and international institutions.
SMRs and Nuclear Power in India
- Small Modular Reactors (SMRs):
- Nuclear reactors with capacity ≤300 MW per unit.
- Modular and scalable; can be deployed in industrial clusters or remote areas.
- Offer lower upfront capital costs compared to large reactors and provide flexible electricity generation.
- Advantages of SMRs:
- Compact and modular design allows faster construction.
- Can tap energy-intensive industries like steel, aluminium, and cement.
- Provide reliable, low-carbon, and clean electricity, complementing renewables.
- Can be deployed near industrial hubs or off-grid areas to address local power deficits.
- Indian Nuclear Context:
- Traditionally dominated by public sector units: Nuclear Power Corporation of India Ltd (NPCIL), Bhabha Atomic Research Centre (BARC), and heavy water reactors.
- Conventional reactors are large, expensive, and time-consuming to set up.
- SMRs present an alternative pathway for domestic nuclear expansion, leveraging private sector efficiencies.
Key Players in India
- Private Sector:
- Reliance Industries Ltd.
- Tata Power
- Adani Power
- Public Sector/Research Support:
- BARC (Bhabha Atomic Research Centre) – developing SMR prototypes.
- NPCIL – overseeing regulatory and safety frameworks.
- International Technology Partnerships:
- India is engaging with US, Russia, and other advanced nuclear technology countries.
Policy & Legislative Developments
- Current legal hurdles:
- Private companies previously could not operate nuclear plants, as NPCIL had exclusive rights.
- Liability, safety, and regulatory frameworks limited private participation.
- Planned legislative tweaks:
- Allow private companies to construct, own, and operate SMRs under NPCIL supervision.
- Ensure safety, liability, and regulatory compliance while granting operational freedom.
- Provide legal certainty for long-term SMR investment and technology deployment.
Technical & Operational Aspects
- Technology:
- SMRs can utilize pressurised heavy water reactors (PHWRs), light-water reactors, or advanced nuclear designs.
- Can be installed in smaller footprints, suited for industrial clusters and remote regions.
- Deployment Timeline:
- NPCIL’s SMR pilot projects already operational in China and other countries serve as models for India.
- Government expects private sector to speed up commercialization of SMRs domestically.
- Complement to Renewables:
- SMRs provide baseload power, addressing intermittency of solar and wind energy.
Strategic & Economic Implications
- Energy Security:
- Reduces dependence on imported fossil fuels and large-scale centralized energy projects.
- Enhances regional power availability for industrial growth.
- Economic & Industrial Boost:
- SMRs can power energy-intensive industries like steel, aluminium, and cement.
- Private sector participation can catalyze domestic manufacturing of reactors, fuel, and components.
- Global Positioning:
- Helps India establish leadership in next-generation nuclear technology.
- Opportunity for technology exports and international partnerships.
- Environmental Impact:
- Promotes low-carbon electricity, aligning with India’s climate goals.
Challenges
- Technology Readiness:
- Many SMR designs are still under testing or demonstration worldwide.
- India must adapt foreign designs or develop indigenous models.
- Regulatory & Liability Issues:
- Ensuring safety, waste management, and emergency preparedness for private operators is critical.
- Legal frameworks must balance risk management with investment incentives.
- Public Acceptance & Awareness:
- Nuclear energy faces public skepticism due to safety and waste concerns.
- Community engagement is needed for smooth deployment.
Key Takeaways
- SMRs represent a transformative opportunity for India’s nuclear energy landscape.
- Private sector involvement is expected to accelerate deployment, reduce costs, and expand industrial applications.
- Legislative and policy tweaks are crucial for operational and legal clarity.
- SMRs will complement renewable energy, support climate targets, and enhance energy security.
- Regional and global collaboration will boost India’s technological and strategic positioning in nuclear energy.