India’s Nuclear Energy Push in the 2025 Union Budget: Key Highlights
The Union Budget for 2025, presented by Finance Minister Nirmala Sitharaman on February 1, marks a transformative moment for India’s nuclear energy sector, as the government lays out an ambitious vision for its future. The budget allocates substantial resources to enhance nuclear energy capacity, positioning India as a leader in clean energy initiatives while reducing its reliance on fossil fuels.
Nuclear Energy Mission
Target Capacity: The government’s strategic goal is to reach 100 gigawatts (GW) of nuclear power by 2047. This long-term commitment is integral to India’s broader energy transition strategy, which aims to reduce the nation’s dependence on fossil fuels and bolster sustainable energy production.
Small Modular Reactors (SMRs): A key focus of the budget is the development of Small Modular Reactors (SMRs), with an allocation of ₹20,000 crore for research and development. These compact reactors are expected to be operational by 2033 and are seen as a game-changer in nuclear power generation. SMRs are designed to offer enhanced safety, flexibility, and scalability, making them ideal for India’s energy needs.
Legislative Reforms: In a significant move to encourage private sector participation, the budget proposes amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. These reforms aim to create a more open and dynamic environment for private investments in the nuclear sector, fostering innovation and technological advancement.
Economic Impact
Market Reaction: The announcement of the nuclear energy mission was met with positive investor sentiment. Stocks of companies involved in nuclear energy and infrastructure development, such as Bharat Heavy Electricals Ltd (BHEL), Hindustan Construction Company Ltd, and Larsen & Toubro Ltd, surged by up to 12% following the budget announcement. This reflects growing optimism about the government’s commitment to advancing nuclear energy and its potential to drive economic growth.
Industry experts are praising this budget as a game-changer for India’s energy landscape. By focusing on nuclear energy, India not only strengthens its clean energy capacity but also addresses key concerns related to safety and technology control in the nuclear sector.
Conclusion
The 2025 Union Budget outlines a bold and progressive vision for India’s nuclear energy future. By investing in SMRs, expanding nuclear capacity, and reforming legislative frameworks, the government aims to place India at the forefront of global clean energy initiatives. With these transformative steps, India is poised to meet its growing energy demands while contributing to a sustainable and low-carbon global energy landscape.
