Page 62 - Policy Economic Report_Feb'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

for startups, perceived investment risks, and policy support required to scale up these solutions. The final
session focused on regulatory and capacity-building measures for banks and NBFCs, discussing RBI
guidelines, sector-specific lending policies, and strategies to enhance financing in consumer-oriented RE
applications. Stakeholders highlighted the need for better regulatory frameworks, risk-sharing
mechanisms, and financial instruments to unlock capital for India's renewable energy ambitions. The
discussions reinforced the necessity of collaborative efforts among policymakers, financial institutions,
and industry leaders to mobilize large-scale investments and achieve India's target of 500 GW of non-fossil
fuel energy by 2030.

Nuclear Power in Union Budget 2025-26

The Union Budget 2025-26 outlines a significant push towards nuclear energy as part of India's long-term
energy transition strategy. The government has set an ambitious target of 100 GW nuclear power capacity
by 2047, positioning nuclear energy as a major pillar in India's energy mix. This development aligns with
the broader objectives of Viksit Bharat, ensuring energy reliability and reducing dependency on fossil
fuels. To achieve this goal, strategic policy interventions and infrastructure investments are being
undertaken, with an emphasis on indigenous nuclear technology and public-private collaborations.

Recognizing nuclear power as a critical component for achieving energy security and sustainability, the
government has introduced the Nuclear Energy Mission for Viksit Bharat. This initiative aims to enhance
domestic nuclear capabilities, promote private sector participation, and accelerate the deployment of
advanced nuclear technologies such as Small Modular Reactors (SMRs).

Small Modular Reactors (SMRs) and R&D Initiatives

A key highlight of the Union Budget 2025-26 is the launch of a Nuclear Energy Mission, which is focused
on research and development (R&D) of Small Modular Reactors (SMRs). The government has
allocated ?20,000 crore for this initiative, aiming to develop at least five indigenously designed and
operational SMRs by 2033.

Nuclear Energy Mission for Viksit Bharat

To facilitate the implementation of the Nuclear Energy Mission, amendments to the Atomic Energy
Act and Civil Liability for Nuclear Damage Act will be taken up by the parliament. These amendments are
expected to encourage private sector investments in nuclear power projects. These legislative changes
are expected to create a more conducive environment for investment and innovation in the nuclear
sector. The mission aligns with India's commitment to achieving 100 GW of nuclear energy
capacity by 2047, a milestone deemed essential for reducing carbon emissions and meeting future energy
demands. As of January 30, 2025, India’s nuclear capacity is 8180 MW.

The government will enter into partnerships with the private sector with the motive of:

• Setting up Bharat Small Reactors,
• Research & development of Bharat Small Modular Reactor, and
• Research & development of newer technologies for nuclear energy.

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