During the Union Budget 2025–26 presented on February 1, the Indian government announced the launch of the Nuclear Energy Mission, aiming to develop at least 100GW of nuclear power by 2047.

In her budget speech, Finance Minister Nirmala Sitharaman said the government would establish a Nuclear Energy Mission worth INR200bn ($2.3bn) to support research and development of small modular reactors (SMRs). She also confirmed that at least five indigenously developed SMRs would be operational by 2033.

Union Minister for Power and Housing and Urban Affairs Manohar Lal welcomed the focus on nuclear energy, stating that the goal of developing 100GW of nuclear power by 2047 highlights India’s commitment to a clean energy transition. He added that operationalising five SMRs by 2033 would enhance India’s energy security and reinforce its leadership in advanced nuclear technology. Lal also noted that expanding nuclear power would strengthen the country’s power infrastructure and reduce dependence on conventional energy sources.

With clean energy a key focus area, India aims to cut its reliance on fossil fuels in the coming years, identifying nuclear power as an important component of its energy mix. The government sees SMRs as a promising technology for this transition, given their modularity, scalability, small footprint and enhanced safety. SMRs are particularly suited for repurposing ageing coal-fuelled thermal power station sites and for deployment in regions unsuitable for large nuclear plants, providing a significant source of low-carbon electricity.

The government has previously clarified that SMRs are not intended to replace conventional large-scale nuclear power plants, which will continue to serve as base load power sources. Nuclear plants are developed and operated under stringent regulatory standards to prevent radiation exposure. The government also acknowledged that the techno-commercial development of SMRs remains in its early stages globally.

State-owned power company NTPC has announced plans to establish a wholly-owned subsidiary dedicated to nuclear power generation. The company has reiterated its commitment to making nuclear power a key source of baseload energy in the coming decades and is also exploring SMR nuclear technology. NTPC already has a joint venture with NPCIL, in which it holds a 49% stake.

Currently, only two SMR projects are in operation worldwide. Russia’s Akademik Lomonosov floating power unit, with two 35-MWe modules, began commercial operations in May 2020. China’s HTR-PM demonstration project was connected to the grid in December 2021 and reportedly entered commercial operation in December 2023.