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Nuclear Power – India's Next Long-Term Clean Energy Growth Engine

ICICIdirect Research 21 Aug 2026 DISCLAIMER

PM reiterated the 100 GW nuclear capacity target by 2047 which creates a potentially enormous, long-duration capex opportunity. Notably, Nuclear power is poised to become a key pillar of India's long-term energy strategy as the government focuses on expanding reliable, carbon-free baseload generation. India's installed nuclear capacity is expected to increase from ~8.8 GW currently to ~22 GW by FY32, while the government has set an ambitious target of 100 GW by 2047, creating a ₹20 lakh crore+ (considering ~ ₹18-20 crore per MW) investment opportunity across reactors, turbines, heavy engineering, EPC, transmission grid infra and the domestic nuclear supply chain.

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 and have greater flexibility compared to traditional large reactors.

Key beneficiaries are expected across the capital goods value chain,

  • BHEL, Larsen & Toubro (Turbine, Generators & nuclear equipment supplier, ~35% of project cost),
  • NTPC, Tata power, Adani Power (Developer),
  • KSB, Kirloskar Brothers, (Nuclear grade pump & valves which is 3-5% of project cost).

 

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