Ram outlines government’s policy roadmap for expanding India’s nuclear sector
The central challenge is building a financial architecture that makes nuclear projects in India bankable, predictable and investable at scale, says Seema Jain, Member-Finance, Department of Atomic Energy.
While addressing at ‘FICCI Roundtable on India’s Nuclear Vision: Financing 100 GW Target’, Jain called India’s nuclear sector expansion a transformative reform, noting that while the SHANTI Act’s legal framework is now in place.
She said that achieving 100 GW requires not just mobilising capital but sequencing it wisely and allocating risk equitably across the asset’s long lifecycle. Citing three scenarios based on a 50-50 mix of heavy water and light water reactor technologies, she estimated funding needs for Rs.9 lakh crore for 30 GW, Rs.20 lakh crore for 40 GW, and Rs.50 lakh crore for 50 GW over the next decade.
Drawing on NPCIL’s experience, with its AAA rating, 70:30 debt-equity model, and diverse funding sources including bank loans, DFIs, yen-denominated external borrowings, and Russian state credit, she outlined the path ahead: broadening long-term domestic capital, using post-commissioning refinancing to free up funds for new projects under a fleet-mode approach, tapping infrastructure bonds once projects stabilise, and enabling FDI through the automatic route.
She further echoed the industry suggestions for furthering the nuclear energy expansion in the country including reclassifying nuclear power from the ‘red’ category of industries, GST rationalization from 18 per cent to 5 per cent, introducing a nuclear energy consumption obligation akin to renewable purchase obligations, and setting up dedicated aggregator agency on the lines of the Solar Energy Corporation of India for creating assures and sustained long-terms demand.
She highlighted that financing the envisaged scale of nuclear expansion is a complex and challenging task but expressed confidence in the collective commitment of government and industry to take it forward, as reported by FICCI in a press release on 9 Sept.
Rajnath Ram, Adviser, NITI Aayog, outlined the government’s policy roadmap for expanding India’s nuclear sector, noting that clean, dispatchable nuclear energy is essential to achieving both energy security and the twin goals of Viksit Bharat by 2047 and Net Zero by 2070. Highlighting on the Vision of 100GW nuclear capacity by 2047, he outlined that appx 22GW capacity is expected to be reached by 2032.
He shared that the Union Budget 2025-26 earmarked nearly Rs.20,000 crore for operationalising five indigenous Small Modular Reactors (SMRs) by 2033, while the 2026-27 Budget extended the Basic Customs Duty exemption on imports of goods required for nuclear power projects till 2035.
Ram noted that achieving the 100GW target will require over Rs.20 lakh crore in investment and a rise in nuclear fuel requirement from about 1,300 tonnes to nearly 20,000 tonnes per annum. He acknowledged that high capital costs across technologies — PHWR, PWR, and SMR — make nuclear power’s competitiveness a concern, and the government is considering budgetary support in the initial years.
On financing, he called for augmenting the Indian nuclear insurance pool (currently about Rs.1,500 crore), recognising nuclear as green energy with infrastructure status to enable access to banking finance, green bonds and green deposits — currently excluded under the Sovereign Green Bond framework and RBI’s green deposit norms.
Speaking on safety regulation, Hari Kumar, Distinguished Scientist and Director (RA & ER), Atomic Energy Regulatory Board (AERB), noted that the regulatory process for safety, and the underlying safety requirements for established technologies such as pressurised heavy water reactors, light water reactors and fast breeder reactors, are well established and time-tested, adding that predictability of regulatory outcomes depends significantly on how well project proponents understand and apply these regulatory requirements from the application stage itself.
He applauded industry consultation through FICCI’s task force on civil nuclear energy and expressed AERB’s openness to working together going forward.
Opening the Roundtable, Director General, FICCI, Jyoti Vij said that the target of 100 GW nuclear power by 2047 is a significant national aspiration and a key component of India’s journey towards energy security, sustainable development and Viksit Bharat. She noted that achieving this target will require much more than technology and capacity addition, with financing emerging as one of the most critical enablers, as the nuclear capacity build-up over the next two decades will need funding in excess of Rs.24 lakh crore.
Satish Kumar Sharma, Chair, FICCI Civil Nuclear Task Force and Director, Jindal Nuclear Power, said that India is firmly on the path to financing its nuclear power ambitions, with the Government’s active engagement on the subject serving as clear evidence of this momentum. Highlighting insurance as a critical component of nuclear power financing, he pointed out that no insurance product currently exists that can offer assurance to lenders and investors. Thus, developing one is the need of the hour.
Apoorva Anand, Director, F&CA Division, Central Electricity Authority noted that clean energy capital is scaling up fast. Speaking about the total generation portfolio and the 100 GW nuclear milestone, he described it as both a capital milestone and a building block, pointing to CEA’s estimate of nearly Rs.20 lakh crore in investment needed to get there.
He added that 14 GW of capacity is currently under construction, with completion targeted over 2025–2036. He also spoke about grid reliability and interconnection, noting that careful planning keeps tariffs stable. Turning to Small Modular Reactors (SMRs) in the sector, he spoke about the lower cost of debt, and early adoption, stating that nuclear tariffs must be competitive and adoption friendly.
K N Babooraj, Executive Director (Finance), Nuclear Power Corporation of India Ltd, advocated for a collaborative financing framework for nuclear projects, stating that “To bridge the capital requirement and accelerate deployment across both large-scale pressurized heavy water reactors and emerging Small Modular Reactors (SMRs), fostering robust collaborative frameworks is paramount. We see immense potential in deepening public-private partnerships, expanding joint ventures with cash-rich public sector entities, and establishing risk-sharing mechanisms that de-risk private capital entry.”
A joint FICCI-CRF report, was launched at the Roundtable which analyses economic lifecycle of nuclear assets, evaluates global financing archetypes, examines risk-allocation and bankability enablers, and outlines actionable policy levers to significantly reduce construction-period risks, Interest During Construction (IDC), and delivered electricity tariffs. Fiinews.com
