In a major push to clean energy transition, Finance Minister Nirmala Sitharaman on Saturday announced a Nuclear Energy Mission to promote research and development of small modular reactors, with an outlay of Rs 20,000 crore.
Presenting Union Budget 2025-26 in the Lok Sabha, Sitharaman said, “The development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts for Viksit Bharat”.
The Mission aims to align with India’s net-zero emissions target and to meet the increasing electricity demand.
She said for an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up.”
“A Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of Rs 20,000 crore will be set up. At least 5 indigenously developed SMRs will be operationalized by 2033”, the Finance Minister added.
The Budget also proposes that states will be incentivized for electricity distribution reforms and augmentation of intra-state transmission capacity.
This will improve the financial health and capacity of electricity companies. Sitharaman informed that additional borrowing of 0.5 percent of GSDP will be allowed to states, contingent on these reforms.
Earlier, hailing the decision Prime Minister Narendra Modi said, “Encouraging the private sector in Nuclear Energy is historic. It will ensure a big contribution of Civil Nuclear Energy in the development of the country”.
In her previous Budget, the Minister said the government would partner with the private sector to set up Bharat Small Reactors, research and development (R&D) of Bharat Small Modular Reactor, and of newer technologies for nuclear energy. The FY25 Budget allocated Rs 24,969 crore for the same.
