The demand for electricity from India's energy-intensive sectors, including manufacturing, transportation and digital infrastructure, is expected to grow rapidly in the near future. While renewable energy from solar and wind is central to the decarbonisation policy of the government, these exhibit intermittency. Their power output is uneven and affected by conditions such as weather and time of the day.
Battery storage alone cannot bridge multi-day gaps in generation at national scale. As a result, expansion of nuclear power plants, which is under discussion peripherally since decades, is now emerging as a viable option in the country’s policy discussion circle to complement renewable sources while addressing energy security.
The annual energy demand in India was 1,734.37 TWh during 2023-24. A recent report showed that this demand will reach nearly 9,000 TWh per year by 2050 and exceed 19,000 TWh by 2070.
Around half of the projected demand growth will come from industrial sectors such as steel, cement, aluminium and chemicals, as well as data centers. These industries will require clean and consistent source of electricity.
The discussion on nuclear energy is not only about diversification of energy sources in India. It is a long-term strategy, safeguarding India’s energy security, industrial competitiveness, and energy governance.
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 is the most consequential reform of India's civil-nuclear governance in over six decades. The act enables participation of private sector in India’s nuclear sector.
It has introduced a tiered civil nuclear liability for operators based on the installed capacity. The liability limits range from Rs 100 crore (reactors having thermal power up to 150 MW) to Rs 3,000 crore (reactors having thermal power above 3,600 MW).
However, the rules governing the Act's implementation have not yet been notified. Policies on nuclear waste management and spent fuel are still under development. Until they arrive, the intent remains merely aspirational.
The Small Modular Reactors (SMR) are emerging as a viable option within India's nuclear strategy. Unlike conventional nuclear reactors, these are small, factory made reactors that can be in transported in a modular setup, significantly reducing the time taken from conceptualization to commissioning. These have lower upfront capital requirements, and are easy to deploy.
A key feature of SMR is ‘passive safety systems’, which can shut down the whole reactor without the intervention of the operator or external power in case of an emergency.
The NITI Aayog positions SMRs technology for the next phase in India’s nuclear expansion strategy. These reactors can be deployed at a number of locations, including at the site of retiring coal based thermal power plants, near industrial clusters, in remote off grid regions, and in hybrid systems with renewables.
India's expanding data center industry demands over of 1,000 megawatts of uninterrupted, low-carbon electricity per large complex. Supplying that load through conventional transmission in dense urban environments is structurally difficult.
An SMR sited near the point of consumption offers a solution that conventional grid cannot provide. However, this moves SMRs from remote assets to viable infrastructure in proximity to cities. This is a significant conceptual shift and raises environmental questions India must begin answering now.
Nuclear plants require significant and consistent supply of water for its operation. Setting up SMR-based nuclear power plants near already water-stressed urban regions will require rigorous hydrological assessment. The government has already announced that exclusion zones for new SMR designs will be significantly smaller as compared to large nuclear power plants. In such a scenario, the ecological and community implications, will require far greater public deliberation than they have so far received.
Placing nuclear infrastructure near cities is not without precedent globally, but it is not without complexity either. A 2024 study published argues that SMRs are expected to be, in many instances, "closely integrated within the community fabric throughout cities and towns", and that urban planners, not just nuclear engineers, must become active participants in decisions about their placement. The study warns that the planning community has remained largely silent about local impacts.
In India, this is equally applicable. Deployment of SMRs near cities with a prior, sustained, and genuine two-way public conversation will strengthen both the public trust and safety prospects of the technology.
On the prospect of public acceptability of SMR-based power plants, G Vaidyanathan, retired scientist and former Director of the Fast Reactor Technology Group at the Indira Gandhi Centre for Atomic Research, said during a report launch on May 12, 2026, "Community acceptance is of utmost importance."
He pointed out that the discussion on the viability of nuclear energy must happen at a national level, in which diverse stakeholders, including doctors, industries and R&D institutions, should come together for a public discussion to reach a consensus and garner public trust.
Communities living near nuclear sites carry a disproportionate share of the ecological and safety burden of national energy decisions. Their right to honest, accessible and sustained information is not just a public relations consideration, but also a democratic and environmental obligation.
"The idea is not to win a race, the idea is to be safe at every step," Vaidyanathan reminded with the authority of someone who has spent decades inside India's nuclear establishment.
Nuclear energy offers India a genuine pathway to energy security with lower carbon and land footprint per unit of energy, and the potential to repurpose rather than expand its disturbed landscapes. But that prospect is redeemable only if absolute safety is ensured.
The onus lies on the current generation to ensure that future generations must not inherit the burden of nuclear catastrophe.