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PARLIAMENT QUESTION: DEPLOYMENT OF SMALL MODULAR REACTORS

The Nuclear Energy Mission (NEM) under Union Budget 2025-26 targets 100 GWe nuclear capacity by 2047 and five indigenous SMRs. BARC is developing BSMR-200 (220 MWe), SMR-55 (55 MWe), and HTGCR (5 MWth) at Tarapur and Vizag. The SHANTI Act 2025, notified Dec 21, 2025, enables private participation, grants AERB statutory status, and reforms liability. Rs 20,000 crore allocated for SMR R&D. Construction estimated at 60-72 months post-financial approval.

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Key points

Exam-ready takeaways

Nuclear Energy Mission (NEM) announced in Union Budget 2025-26 aims for 100 GWe nuclear capacity by 2047 and 5 indigenous SMRs

BARC developing three SMRs: BSMR-200 (220 MWe, upgradable to 300 MWe), SMR-55 (55 MWe), HTGCR (5 MWth for hydrogen) at Tarapur (Maharashtra) and BARC Vizag

SHANTI Act 2025 enacted by Ministry of Law & Justice, notified Dec 21, 2025 - enables private participation, gives AERB statutory status, reforms liability regime

Rs 20,000 crore budgetary allocation for SMR research, development and deployment under NEM

In-principle approvals received for all three SMRs; AEC approved Tarapur site for BSMR-200 & SMR-55; construction estimated 60-72 months from financial approval

Detailed analysis

Full exam-oriented breakdown

India's nuclear energy journey has entered a transformative phase with the announcement of the Nuclear Energy Mission (NEM) in the Union Budget 2025-26, setting an ambitious target of 100 GWe nuclear power generation capacity by 2047 — the centenary of India's independence. This vision builds upon decades of indigenous nuclear technology development, beginning with the establishment of the Atomic Energy Commission (AEC) in 1948 under Dr. Homi J. Bhabha, and the subsequent development of Pressurised Heavy Water Reactors (PHWRs) that form the backbone of India's current nuclear fleet. The NEM's focus on Small Modular Reactors (SMRs) represents a strategic pivot toward next-generation nuclear technology that is safer, more flexible, and better suited for decentralized deployment. Bhabha Atomic Research Centre (BARC) is spearheading the development of three indigenous SMR designs: the 220 MWe Bharat Small Modular Reactor (BSMR-200) — with capacity augmentation to 300 MWe envisaged — the 55 MWe SMR-55, and the High Temperature Gas Cooled Reactor (HTGCR) of up to 5 MWth for hydrogen production. All three are demonstration reactors, with in-principle approvals for engineering and construction already secured. The Atomic Energy Commission has approved Tarapur, Maharashtra as the site for BSMR-200 and SMR-55, while BARC Vizag has been selected for HTGCR, with siting consent received and Terms of Reference for environmental clearance obtained from MoEF&CC. A landmark legislative development is the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, enacted by the Ministry of Law and Justice and notified on December 21, 2025. This single, coherent legislation marks a paradigm shift by enabling private sector participation in nuclear energy research and innovation under license and safety authorization, while retaining sovereign control — addressing a long-standing constraint under the Atomic Energy Act, 1962, which restricted nuclear activities to the public sector. The SHANTI Act grants statutory status to the Atomic Energy Regulatory Board (AERB), strengthening regulatory oversight in alignment with International Atomic Energy Agency (IAEA) safety standards. It also reforms the nuclear liability regime to align with international conventions (such as the Convention on Supplementary Compensation for Nuclear Damage), introducing graded liability based on facility type and reactor power, thereby unlocking broader domestic and foreign investment. Constitutionally, this engages Article 246 read with the Union List (Entry 54: regulation and development of atomic energy), and reflects the Directive Principle under Article 51(c) fostering respect for international law and treaty obligations. The Rs. 20,000 crore budgetary allocation under NEM for SMR R&D underscores the government's commitment. Indigenous development of critical technologies — including the special material Advanced Purified Reactor Vessel Alloy (ApuRVA), forging technology for reactor pressure vessels, and in-house control rod drive mechanisms — demonstrates India's growing self-reliance (Atmanirbhar Bharat) in strategic sectors. Leveraging domestic industry expertise from PHWR manufacturing ensures supply chain readiness. The estimated 60-72 month construction timeline from financial approval indicates a clear project execution roadmap. The significance for India is multi-dimensional: energy security through diversification away from fossil fuels (supporting net-zero by 2070 commitment), decarbonization of hard-to-abate sectors via HTGCR-enabled hydrogen production, technology leadership in the Global South, and economic multiplier effects through high-skilled jobs and industrial development. Internationally, SMR deployment positions India as a credible partner for nuclear cooperation under frameworks like the IAEA's SMR Regulators' Forum and the Nuclear Harmonization and Standardization Initiative (NHSI). Future implications include potential export of Indian SMR designs, integration with renewable-heavy grids for baseload stability, and the evolution of a robust nuclear innovation ecosystem with public-private partnerships. For UPSC aspirants, this topic interconnects science & technology, governance, economy, environment, and international relations — a quintessential example of interdisciplinary policy-making in New India.

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