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Government's Nuclear Energy Push to Scale Capacity to 100 GW by 2047

ICICIdirect Research 19 Dec 2025 DISCLAIMER

While renewable energy (solar, wind) is expanding rapidly, its intermittent nature and reliance on costly storage systems limit its ability to provide round-the-clock power. Nuclear energy offers reliable 24×7 electricity, ensures grid stability, reduces dependence on large-scale battery storage, and delivers clean power at scale, making it essential for meeting India’s rising power demand and achieving long-term Net-Zero goals.

 For achieving this the country is launching a major push to increase its nuclear power capacity twelve-fold, from ~ 8.8 GW to 100 GW by 2047. This ambitious target requires massive funding over ₹20 lakh crore (1 MW of Nuclear capex entails ~ ₹20 crore per MW), compelling the government to end its six-decade-long monopoly and introduce radical reforms to attract necessary private and foreign investment. The entire nuclear sector is being overhauled to create the financial and regulatory framework needed for this massive expansion.

Nuclear Energy Mission to drive ₹20 lakh crore (~ ₹20 crore per MW) capex for scaling capacity to 100 GW by 2047: Under the proposed Nuclear Energy Mission, the government has  outlined a planned reactor mix of 46.5 GW Pressurized heavy-water reactor (PHWRs), 38.8 GW Pressurized Water Reactor (PWRs), 5 GW Fast Breeder Reactors (FBRs) and 10 GW Bharat Small/Modular Reactors (BSRs/BSMRs), forming the technological backbone of the country’s long-term nuclear expansion.

To achieve this 100 GW nuclear capacity target, the total investment required is estimated at ₹20 lakh crore, which translates to an average cost of around ₹20 crore per MW of nuclear capacity, with annual uranium demand rising to 8,000 tonnes of natural and 1,000 tonnes of enriched uranium by 2047. 

Focus on Small Modular Reactors: A key part of the expansion strategy revolves around Small Modular Reactors (SMRs). The recent budget allocated ₹20,000 crore specifically for Nuclear Energy Mission focus on developing Indian designed SMRs with target to have five homegrown units running by 2033. These smaller, factory-built units are quick to set-up, has lower initial costs and greater flexibility compared to traditional large reactors.


NPCIL Pushes for GST Waiver and Clean-Energy Incentives: NPCIL (Nuclear Power Corporation of India Ltd) has requested the government to reduce the tax burden on nuclear projects. Since electricity is outside the GST system, nuclear projects cannot claim input tax credits, which increases project costs. NPCIL has asked for a GST waiver, or a return of earlier tax benefits given to large infrastructure projects.

NPCIL has also asked for equal treatment with renewable energy, such as access to green finance and the introduction of a nuclear purchase obligation. The argument is that nuclear power has very low lifetime carbon emissions, like solar and wind, and should be treated as clean energy.

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