Tata Group is poised to become one of the first private sector players to enter the nuclear power business in India. Group chairman N. Chandrasekaran recently announced that Tata Power is exploring participation in "small modular nuclear reactors (SMNRs)" once the government grants necessary permissions.
To recall, it was in late 2022 when Union minister Dr Jitendra Singh invited participation of private sector and Start-ups to explore the development of SMR (Small Module Reactors) technology within India. SMRs are nuclear fission reactors that are smaller than conventional nuclear reactors as we know it, and are modular in use.
The Indian government plans to invite companies to invest approximately $26 billion in the sector to reduce carbon emissions. This move aligns with global trends toward greater acceptance of nuclear energy as countries seek to meet emission goals.
In its latest annual report, Tata Power has mentioned, "As large reactors face constraints and safety concerns, there has been a shift towards SMNRs. Governments are increasingly supporting SMNR development, unveiling new funding plans."
While challenges exist in building SMRs, countries like China, Russia, and the U.S. are leading the way in this segment. In contrast, India's nuclear energy expansion has been slower, with Nuclear Power Corporation of India Ltd. (NPCIL) recently commissioning two 700 MW units at Kakrapar nuclear power station in Gujarat after a six-year gap.
As of now, India operates 24 nuclear reactors with a combined capacity of 8.1 gigawatts (GW). India aims to add 18 more nuclear reactors by 2031–32, bringing the total nuclear power capacity to 22.4 GW. These include 10 indigenously designed pressurized heavy water reactors (PHWRs).
At present, the law bars private firms from building nuclear power plants in the country. However, they can supply equipment and components and participate in civil construction outside the reactors.
The Indian government is seeking $26 billion (Rs2.16 trillion) in private investment for ittechnology. nergy industry to decarbonize the power sector. Talks are ongoing with private companies like Reliance Industries, Tata Power, Adani Power, and Vedanta.
Notably, in her Budget 2024 speech, Finance Minister Nirmala Sitharaman announced plans to develop Bharat Small Reactors (BSRs) as part of India's push to expand its nuclear energy capabilities. BSRs are compact nuclear reactors designed to generate electricity on a smaller scale compared to traditional large nuclear power plants. They are based on India’s tried and tested 220-megawatt pressurized Heavy Water Reactor (PHWR) technology, with 16 operational units already in the country.
The key innovation with BSRs is the government’s decision to partner with the private sector for their development and deployment. This marks a historic shift, as the Atomic Energy Act of 1962 previously did not permit private sector participation in nuclear energy generation.
While BSRs align with global trends in nuclear energy, they are distinct from small modular reactors (SMRs). SMRs involve factory-made, easily assembled reactors, whereas BSRs build upon India’s existing PHWR technology.
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