INDIA BALANCES ENERGY SECURITY WITH GLOBAL NON-PROLIFERATION NORMS

27th December, 2025

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Picture Courtesy:  INDIANEXPRESS

Context

The Indian government has announced plans to amend the Atomic Energy Act, 1962, to allow private sector participation in the civil nuclear power sector.

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NUCLEAR ENERGY MISSION IN BUDGET

What is Nuclear Power?

Nuclear power is a low-carbon method of generating electricity by harnessing energy from the core (nucleus) of an atom. It relies on nuclear reactions—specifically fission—to produce heat.

How it Works?

All commercial nuclear power plants operate using nuclear fission

  • Splitting the Atom: A neutron is fired at a heavy atom, usually Uranium-235. This causes the atom to split into smaller parts, releasing a massive amount of heat and more neutrons.
  • Chain Reaction: The released neutrons hit other uranium atoms, causing them to split as well. This creates a self-sustaining "chain reaction" that is carefully controlled by control rods (made of materials like boron or cadmium) that absorb excess neutrons.
  • Generating Electricity: The heat from this reaction boils water to create high-pressure steam. This steam spins a turbine, which is connected to a generator that produces electricity. 

Types of Nuclear Reactions

  • Nuclear Fission (Current): The process of splitting heavy nuclei (Uranium, Plutonium). It is highly efficient but produces radioactive waste that must be managed for thousands of years.
  • Nuclear Fusion (Future): The process of joining light nuclei (like Hydrogen isotopes) to form a heavier one, releasing even more energy. Fusion powers the sun. 
    • It is in the experimental stage (e.g., the ITER project) because it requires extreme temperatures of over 100 million degrees Celsius to occur. 

The industry is shifting toward Small Modular Reactors (SMRs). These are smaller, factory-built reactors that are easier to finance and faster to deploy than traditional large-scale plants.  

Current Status of Nuclear Power in India

Nuclear power is currently the fifth-largest source of electricity in India.  

As of late 2025, India operates 25 nuclear reactors across seven locations with a total installed capacity of 8,880 MW, contributing approximately 3% of the country's electricity generation. (Source: PIB)

Under the Nuclear Energy Mission launched in early 2025, the government has set an ambitious target to reach 100 GW of nuclear capacity by 2047

Operational and Project Status

  • Operational Capacity: Currently, 25 reactors are grid-connected. The fleet consists of indigenous Pressurized Heavy Water Reactors (PHWRs) and Russian-designed VVER light water reactors.
  • Recent Commissions:
    • Rajasthan Atomic Power Project (RAPP) Unit-7 (700 MW): Commenced commercial operations in April 2025.
    • Kakrapar Atomic Power Project (KAPP) Units 3 & 4 (700 MW): Indigenous reactors that reached full power in 2023–24.
  • Under Construction: 8 reactors (totaling 6,600 MW) are currently in various stages of construction or commissioning, including units at Rawatbhata (Rajasthan), Kudankulam (Tamil Nadu), and Gorakhpur (Haryana).
  • Strategic Expansion: Government plans to increase capacity to 22,480 MW by 2031–32.
  • Small Modular Reactors (SMRs) Development: Government has allocated ₹20,000 crore to develop at least five indigenously designed SMRs by 2033

Legislative Reforms: The SHANTI Act, 2025

To achieve the 100 GW target, the parliament has passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025. 

  • Ending State Monopoly: The Act allows private Indian and foreign companies to build, own, and operate nuclear power plants, ending the decades-long monopoly of the state-owned Nuclear Power Corporation of India Ltd (NPCIL).
  • Focus on Small Modular Reactors (SMRs): The government's Nuclear Energy Mission aims to make at least five indigenously developed SMRs operational by 2033.
  • Strategic Control Retained: While opening the sector, the government retains exclusive control over sensitive and strategic activities like uranium enrichment, fuel reprocessing, and heavy water production.

Restructuring Civil Nuclear Liability

A major hurdle for private and foreign investment has been supplier liability clauses. The SHANTI Act aligns India’s framework with international norms.

  • The Issue with Civil Liability for Nuclear Damage (CLND) Act 2010: Section 17(b) of the Act gave the operator (NPCIL) a "right of recourse" to claim damages from equipment suppliers in case of an accident. This created unlimited liability, deterring foreign suppliers.
  • Alignment with Global Norms: The new law removes this clause, channeling liability exclusively to the operator, consistent with the Convention on Supplementary Compensation for Nuclear Damage (CSC), which India ratified. 
    • This provides legal certainty and is expected to attract foreign technology partners for projects like Jaitapur and Kovvada.

Strengthening the Regulatory Framework

  • Statutory Status for AERB: The Atomic Energy Regulatory Board (AERB), previously an executive body, has been granted independent statutory status and is now accountable to Parliament. This enhances its credibility and autonomy.
  • Clear Governance: The new framework establishes clear rules for licensing, safety oversight, and inspections, aligning with International Atomic Energy Agency (IAEA) standards.

Global Nuclear Risks & India's Disarmament Policy

Rising global nuclear risks, driven by eroding arms control and geopolitical tensions, underline the significance of India's pragmatic model of balancing nuclear disarmament with its security requirements.

Factors Fuelling Rising Nuclear Risk

Geopolitical Tensions & Arms Race

Increasing strategic competition has led nuclear-armed states to modernize their arsenals. The number of operational nuclear warheads is increasing year-on-year, even as the total global inventory slowly declines due to the dismantling of retired weapons (Source: SIPRI).

Breakdown of Arms Control

The collapse or suspension of key treaties like the Intermediate-Range Nuclear Forces (INF) Treaty and the New START Treaty has removed critical checks, fueling instability.

Advanced Delivery Systems

The development of technologies like hypersonic missiles compresses decision-making time and increases the risk of miscalculation.

Militarization of New Domains

Competition is expanding into space and cyberspace, creating new pathways for conflict escalation involving nuclear command and control systems.

India's Approach to Nuclear Disarmament

India’s nuclear policy is anchored in a commitment to global disarmament while addressing its regional security challenges. The doctrine rests on two pillars: "No First Use" and "Credible Minimum Deterrence."

  • No First Use (NFU): India has a declared policy of not being the first to use nuclear weapons in a conflict. It will only use them in retaliation against a nuclear attack on its territory or forces. 
    • However, this policy is qualified, with the doctrine noting that nuclear retaliation could also be an option in response to a major attack with biological or chemical weapons.
  • Credible Minimum Deterrence: India maintains a survivable nuclear arsenal sufficient to deter an adversary, focusing on ensuring a credible second-strike capability rather than achieving numerical parity with other nuclear powers.

India's Stance on Key International Treaties

Treaty

India's Position and Rationale

Non-Proliferation Treaty (NPT)

Not a signatory. India views the NPT as discriminatory because it legitimizes the arsenals of the five permanent UN Security Council members while denying other states the same right.

Comprehensive Test-Ban Treaty (CTBT)

Not signed. While India observes a unilateral moratorium on nuclear testing, it maintains that the treaty does not provide a time-bound framework for the complete elimination of nuclear weapons.

Treaty on the Prohibition of Nuclear Weapons (TPNW)

Not supported. India believes that any such treaty must be negotiated within the UN-mandated Conference on Disarmament (CD) and include all nuclear-armed states to be effective.

Conclusion

India is strategically using nuclear technology for clean energy, with legislative reforms opening the sector to achieve energy self-sufficiency and Net Zero goals, all while promoting responsible global nuclear security.

Source: INDIAN EXPRESS

PRACTICE QUESTION

Q. How can the private sector participation in nuclear energy bridge the gap in India’s baseload power requirements? 150 words 

Frequently Asked Questions (FAQs)

The primary purpose of the SHANTI Act, 2025, is to end the government's six-decade-long monopoly on nuclear power generation in India. It aims to accelerate the growth of nuclear energy by allowing private companies to invest in, build, and operate nuclear power plants.

The Act fundamentally changes the landscape by moving from a state-ownership model to a licence-based regulatory regime. This allows private entities to participate directly in nuclear power generation, which was previously restricted to government-owned corporations under the Atomic Energy Act, 1962.

The SHANTI Act aligns India's liability framework with international standards. It specifies that an operator can only seek recourse against a supplier if it's explicitly mentioned in a contract or if the damage was caused intentionally. This removes the major obstacle of unlimited liability that deterred foreign technology partners.

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