Nuclear Energy Sector in Union Budget 2025-26

Context: The Union Budget 2025-26 announced Rs 20,000 crore allocation for the Nuclear Energy Mission which aims to develop indigenous Small Modular Reactors (SMR).

Major Initiatives in Budget for Nuclear Energy Sector:

1. Nuclear Energy Mission:

• About: Nuclear Energy Mission is focused on research and development (R&D) of Small Modular Reactors (SMRs). 
• Budget: ₹20,000 crore
• Aim: To develop at least five indigenously designed and operational SMRs by 2033.
• The government will enter into partnerships with private sector to:
  • Set up Bharat Small Reactors
  • R&D of Bharat Small Modular Reactors
  • R&D of newer technologies for Nuclear Energy. Introduce new nuclear reactors including-
    • high-temperature gas-cooled reactors for hydrogen co-generation. 
    • molten salt reactors aimed at utilising India's abundant Thorium resources.
• The private entities would provide land, cooling water, and capital. While the Nuclear Power Corporation of India Limited (NPCIL) will handle design, quality assurance, and operation and maintenance, within the existing legal framework. 

2. Energy-sector Reforms: 

• Amendments to the Atomic Energy Act, 1962 and Civil Liability for Nuclear Damage Act, 2010 will be done. 
• This is aimed to facilitate implementation of the Nuclear Energy Mission and to encourage private-sector investments in the nuclear power projects.

Significance of the Initiatives: 

• As of January 30, 2025, India’s nuclear capacity is 8180 MW.
• The initiatives align with India's commitment to achieving:
  • 100 GW of Nuclear energy capacity by 2047.
  • 500 GW of non-fossil fuel-based energy generation by 2030, meeting 50% of its energy requirements from renewable energy by 2030, as pledged at COP26 Summit in Glasgow in 2021.

What are Bharat Small Reactors?

• Bharat Small Reactors (BSRs) are 220 MW Pressurised Heavy Water Reactors (PHWRs) with a proven safety and performance record. 
• These reactors are being upgraded to reduce land requirements, making them suitable for deployment near industries such as steel, aluminium, and metals, serving as captive power plants to aid in decarbonisation efforts.

Pressurized Heavy Water Reactor (PHWR):

• Fuel: Natural uranium (unenriched) 
• Moderator and Coolant: Heavy water 
• Cooling System: Combination of heavy water and light water to cool the reactor. Heat is transferred to a secondary loop, which then generates the steam to drive turbines.
• Control Rods: Boron or cadmium control rods.
• Fuel requirement: Annual requirement of fuel (UO2) of a 700 MW PHWR (at 85% Capacity Factor) is about 125 tons. 
• Advantages: Use natural uranium fuel, produce less high-level radioactive waste, operate at lower pressures compared to other reactor types.

What are Bharat Small Modular Reactors?

• Small Modular Reactors (SMRs) are advanced nuclear reactors with a power generation capacity ranging from less than 30 MWe to 300+ MWe.
• They provide a flexible, scalable, and cost-effective alternative to conventional large nuclear reactors.
  • Small – a fraction of the size of a conventional nuclear power reactor.
  • Modular – possible for systems and components to be factory-assembled and transported as a unit to a location for installation.
  • Reactors – harnessing nuclear fission to generate heat to produce energy.
• Applications: Electricity generation in remote locations, energy requirements for industrial processes, water desalination, nuclear submarines etc.
• Advantages: 
  • Adaptable: can be scaled up or down to supply more or less power.
  • Only need to refuel every 3-7 years, as opposed to every 1-2 years for conventional nuclear plants. 
  • Extensive use of passive safety features to shut down and cool reactors under abnormal circumstances, reducing the risk of catastrophic failures. 
  • Have relatively lower-capital requirements, can make nuclear power more accessible.
  • Can complement renewable energy sources and stabilise the grid. 
• Challenges: 
  • Higher cost per unit of electricity production in SMRs due to supply-chain issues and the absence of economies of scale. 
  • SMRs are inferior to conventional reactors with respect to radioactive waste generation and require spent fuel storage & disposal facilities.

Recent developments in Nuclear Energy in India:  

• The government has initiated steps to increase nuclear power capacity from the current 8,180 MW to 22,480 MW by 2031-32.
  • This expansion includes the construction and commissioning of ten reactors, totalling 8,000 MW, across Gujarat, Rajasthan, Tamil Nadu, Haryana, Karnataka, and Madhya Pradesh. 
  • In-principle approval to set up a 6 x 1208 MW nuclear power plant in cooperation with the USA at Kovvada, Srikakulam district, Andhra Pradesh.
• First two units of the indigenous 700 MWe PHWR at Kakrapar, Gujarat (KAPS - 3 & 4) have started commercial operation in FY 2023-24.
• In 2024, Rajasthan Atomic Power Project's Unit-7 (RAPP-7), the third indigenous nuclear reactor, reached criticality (marking the beginning of controlled fission chain reaction).
• Core loading commenced at the country's first Prototype Fast Breeder Reactor (PFBR 500 Mwe) in 2024. This marks the second stage of India's three-stage nuclear power program.
• NPCIL and National Thermal Power Corporation (NTPC) have signed a supplementary Joint Venture agreement to develop nuclear power facilities in the country.
  • The Joint Venture named ASHVINI will function within the existing legal framework of the Atomic Energy Act 1962 (amended in 2015).
  • It will build, own, and operate nuclear power plants, including the upcoming 4x700 MWe PHWR Mahi-Banswara Rajasthan Atomic Power Project.
• A significant discovery of a new deposit in India's oldest Uranium Mine (Jaduguda Mines, Jharkhand) around the existing mine lease area.