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June 29, 2026

India’s Nuclear Moment: Leveraging Thorium and Global Uranium Ties Under a New Legal Framework

Written By: AK Chaturvedi
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A New Dawn

In a landmark achievement for India’s nuclear energy programme, the 500 MWe Prototype Fast Breeder Reactor (PFBR) achieved criticality on 6th April 2026 at 08:25 PM. This marked a quantum leap in the use of nuclear energy for power generation. With this milestone, India advanced to the second stage of its three-stage nuclear programme, as enunciated by Dr Homi Jehangir Bhabha in 1954, using indigenous nuclear technology. It is a matter of satisfaction that it met all the stipulations of the Atomic Energy Regulatory Board (AERB), which had issued clearance after a rigorous review of the safety of the plant systems. Fast Breeder Reactor (FBR) technology serves as a vital bridge between the current fleet of pressurised heavy water reactors (PHWRs) and the future deployment of thorium-based reactors, leveraging the country’s abundant thorium resources for long-term clean energy generation. In terms of plant details, the technology development and design of PFBR were carried out indigenously by the Indira Gandhi Centre for Atomic Research (IGCAR), an R&D Centre of the Department of Atomic Energy (DAE), and it was built and commissioned by Bharatiya Nabhikiya Vidyut Nigam Ltd (BHAVINI), a PSU under the DAE.

FBRs are a cornerstone of India’s long-term nuclear strategy. In these reactors, Uranium-Plutonium Mixed Oxide (MOX) serves as fuel. The PFBR core is surrounded by a blanket of Uranium-238. Fast neutrons convert fertile Uranium-238 into fissile Plutonium-239, enabling the reactor to produce more fuel than it consumes. The reactor is designed to eventually use Thorium-232 in the blanket. Through transmutation, Thorium-232 will be converted into Uranium-233, which will fuel the third stage of India’s nuclear power programme.

This unique capability significantly improves the utilisation of nuclear fuel resources and enables the country to extract far more energy from its limited uranium reserves while preparing for large-scale thorium use in the future. Beyond energy generation, the FBR programme strengthens strategic capabilities in nuclear fuel-cycle technologies, advanced materials, reactor physics, and large-scale engineering. The knowledge and infrastructure developed through this programme will support future reactor designs and next-generation nuclear technologies. As India continues to expand its clean energy portfolio, fast breeder reactors will play a crucial role in delivering reliable, low-carbon, base-load power with higher thermal efficiency. Achieving first criticality thus represents not only a technological milestone but also a major step towards a sustainable and self-reliant energy future for Viksit Bharat.

The reactor incorporates advanced safety systems, high-temperature liquid-sodium coolant technology, and a closed fuel cycle that enables the recycling of nuclear materials, thereby improving sustainability and reducing waste.

Introduction

Energy is the driver of a society’s growth, and energy security means the uninterrupted availability of energy at an affordable cost. India suffers from what can be referred to as TQQ syndrome.[1] The energy needs of Indian industry are met by oil and gas and are increasingly shifting toward renewables, primarily solar. The current crisis of logistics chain disruption from the Middle East (M-E) has affected India because, firstly, the rates of crude and gas in the international market have gone through the roof[2], and secondly, India is the world’s third-largest importer of crude oil, the fourth-largest consumer of LNG, and the second-largest consumer of LPG. Approximately 45% of India’s crude oil, 60% of its natural gas, and over 90% of its LPG imports originate from the M-E. India also depends substantially on imports for solar cells, though India has built a solar module manufacturing capacity of nearly 200 GW annually. However, its solar cell manufacturing capacity is only around 30 GW[3].

The rising import bill has prompted India to pursue electric vehicles, but lithium is central to India’s energy transition, as it powers lithium-ion batteries used in electric vehicles, grid-scale storage systems and renewable energy integration. However, India is entirely import-dependent for lithium, with supplies concentrated among a limited set of countries and subject to price volatility and global market shifts[4]. This excessive dependence on energy imports has weakened the INR and led to India being overtaken by Britain and Japan in terms of GDP. Thus, there is a need to leverage indigenous resources through indigenous technologies and innovative systems, which can help India achieve not only ‘Energy Security’ but also‘Energy Independence’.

The advantages of nuclear energy lie in the fact that, first, India’s nuclear energy programme is substantially indigenous, especially in the first stage of the three-stage programme, and second, the conversion of nuclear energy is environmentally pollution-free[5]. There are challenges in terms of the capital cost of construction, its gestation period, the availability of fuel, which is captive to nuclear supplier group countries[6], and restrictions imposed by the provisions of the Non-Proliferation Treaty-1968 on a country like India, which has not signed the treaty[7].

However, over time, India has resolved issues with technology and fuel supply. Following India’s first nuclear test in 1974, Western countries that had been the source of technology for India denied it, as part of a coercive policy to force India to sign the NPT. India did not succumb to their pressure and, over time, developed its own PHWR technology to exploit indigenous low-grade uranium to produce energy in a limited manner[8] and to protect the availability of indigenous uranium. After the signing of the 123 agreement in 2008, the nuclear fuel supply finally normalised[9]. Today, NPCIL is operating 24 commercial nuclear power reactors with an installed capacity of 8780 MW.

The reactor fleet comprises two Boiling Water Reactors (BWRs), 20 Pressurised Heavy Water Reactors (PHWRs) (excluding RAPS-1), and two VVER (light-water) reactors, each with a capacity of 1000 MW. NPCIL has 7 more reactors under construction, with a total capacity of 6800 MW[10]. With the vision of producing about 100 GW of power using nuclear energy by 2047, the requirement for uranium is likely to rise manyfold. India currently consumes about 1,500–2,000 tonnes of uranium each year. In 2025, the country’s requirement was about 1,884 tonnes. With the expansion of nuclear power, annual uranium demand is likely to rise to about 5,400 tonnes. However, India imports about 70% of its uranium requirements, mainly from Canada, Kazakhstan, Uzbekistan and Russia, because Indian uranium is of low-grade, with concentrations ranging from 0.02% to 0.45%, compared with the global average of 1–2%.

Because of the poor ore quality, extracting uranium in India is more expensive than importing it[11]. However, indigenous uranium remains relevant, as it is used for India’s nuclear weapons programme, which is not under IAEA safeguards. Major deposits in India are located in Jharkhand (26%), Andhra Pradesh and Telangana (49%), and Meghalaya (9%), with the remainder in other states. The total uranium ore in India is estimated at 4.3 lakh tons. In view of the limited availability and lower quality of indigenous uranium, India is likely to remain vulnerable to geopolitical pressures, as is being experienced now in the case of oil and gas, and will continue to face such pressures in the future. Therefore, India needs to look beyond uranium in the nuclear energy route to strengthen the country’s energy security. This makes graduation to ‘Stage-2’ of the ‘Three Stage Nuclear Programme’ at the earliest.

Efforts Being Taken for Nuclear Energy Conversion

A number of steps are being taken to optimise resources and effort to enhance the contribution of nuclear energy to India’s energy basket. Important steps are as follows:

  1. Establishment of New Nuclear Power Plants. These are based on uranium technology and include those under construction or in planning[12].

Table-1 

 

  1. Exploitation of Indigenous Resources. India holds approximately 25% of the world’s thorium. The country’s total in-situ resources are estimated at 11.93 million tonnes of monazite, which contains roughly 1.07 million tonnes of thorium. The geographical breakdown of this resource is as follows: Andhra Pradesh (31%), Tamil Nadu (20%), Odisha (20%), Kerala (16%), and West Bengal & Jharkhand (smaller inland placer deposits). The beach sands of Kerala and Odisha contain monazite sand with 8-10% thorium[13]. However, using thorium as a fuel is more difficult than using uranium because it requires breeding,[14] which is not cost-effective, whereas global uranium prices remain constant. However, thorium’s material sovereignty tilts the balance in its favour.

Map-1: Thorium Availability in India

  1. Fast Breeder Test Reactor (FBTR). India’s endeavour to develop a breeder reactor began in 1969, when the DAE entered into a collaboration with the French Atomic Energy Commission to obtain the design of the RAPSODIE test reactor and the steam-generator-based design of the PHENIX reactor, which was under construction at that time. The reactor designs were significantly modified by Indian engineers for the construction of the FBTR, designed to produce 40 MW of thermal power and 13.2 MW of electrical power. Also, BARC and IGCAR developed an alternative mixed-carbide fuel that provided even better breeding and thermal properties[15]. Finally, the FBTR attained first criticality in October 1985[16]. It was an indigenously manufactured reactor[17]. With this reactor achieving criticality, India joined the USA, the UK, France, Germany, and the former Soviet Union as one of the few nations to build and operate a breeder reactor.
  1. Kalpakkam Mini Reactor (KAMINI). Jointly designed and built by BARC and IGCAR, this 30 MW research reactor achieved first criticality in 1996 and was named KAMINI[18].  It holds the distinction of being the world’s first and the only reactor designed specifically to use Uranium-233 fuel, making it a pioneering facility in thorium-based fuel-cycle research[19].
  1. PFBR. Experience from FBTR operations fed directly into the design of a commercial-scale fast-breeding reactor, known as the PFBR, with a capacity of 500 MWe. In 2003, a separate public-sector utility, BHAVINI, was established to build and operate PFBR and future fast-breeder power reactors, though responsibility for design, R&D, and technical support remained with IGCAR[20]. Construction of the PFBR began in 2004. By 2010, IGCAR had added new experimental and pilot-scale facilities covering the entire fast-reactor fuel cycle. By 2024, a Compact Reprocessing Facility (CORAL) and a demonstration fast-reactor fuel reprocessing plant had been developed to handle high-burn-up FBTR fuel[21]. In 2025, the United States lifted its decades-old restrictions on IGCAR, facilitating energy cooperation between the two nations[22]. Finally, PFBR attained criticality on 06 Apr 2026. It is an opportunity to review the direction that India’s nuclear energy programme needs to take. Should India remain committed to graduating to Stage-II, or should it pursue a more practical and economical approach based on traditional uranium-based technologies? In the short run, the ease of availability suggests that India needs to adopt a less expensive route for the exploitation of nuclear energy. However, keeping in view the experience of current geopolitical developments, it would be prudent to identify an optimal path, which entails continuing to invest in PHWRs/LWRs as a short- to medium-term goal and continuing to work on the closed fuel cycle to enhance its efficiency and effectiveness, with a view to aligning its growth with the Nation’s mission to achieve ‘Net Zero’ emissions by 2070 as a long-term goal[23].
  1. Small Modular Reactors (SMRs). As defined by the IAEA,[24] SMRs are advanced nuclear reactors with a power capacity of up to 300 MW(e) per unit, which is about one-third of the generating capacity of traditional nuclear power reactors. These reactors produce a large amount of low-carbon electricity. They differ in that they are only a fraction of the size of a conventional nuclear power reactor; their parts are modular, so their systems and components can be factory-assembled and transported as a unit for installation; and they use nuclear fission to generate heat and produce energy. Given their smaller footprint, SMRs can be sited in locations not suitable for larger nuclear power plants. Prefabricated SMR units can be manufactured, shipped, and installed on site, making them more affordable to build than large power reactors, which are often custom-designed for a particular location and can lead to construction delays. SMRs offer cost savings and shorter construction times, and they can be deployed incrementally to meet increasing energy demand. Micro reactors (producing up to 10 MWe) have smaller footprints than other SMRs and will be better suited for regions that lack access to clean, reliable, and affordable energy (in the Indian context, they will be highly suitable for our border areas). The safety concept for SMRs often relies more on passive systems and the reactor’s inherent safety characteristics, such as low power and operating pressure. SMRs have reduced fuel requirements. They may require less frequent refuelling, every 3 to 7 years, compared with 1 to 2 years for conventional plants. Some SMRs are designed to operate for up to 30 years without refuelling. As of date, more than 80 commercial SMR designs are being developed worldwide, targeting various outputs and applications, such as electricity, hybrid energy systems, heating, water desalination, and steam for industrial applications. Though SMRs have lower upfront capital costs per unit, their economic competitiveness remains to be proven in practice once they are deployed.
  1. Indigenous SMRs[25]. The concept design of the Bharat Small Modular Reactor (BSMR)-200MWe is an indigenously developed SMR, the result of a collaborative effort between BARC and NPCIL. It is based on Pressurised Water Reactor (PWR) technology and incorporates passive and engineered safety features[26]. The BSMR model is slated to utilise Slightly Enriched Uranium (SEU) as fuel. Detailed engineering for BSMR is underway, with the demonstration unit expected to be erected and started up within six years of financial approval, followed by commissioning and regular operation in the seventh year, at an estimated cost of Rs 5,700 crores[27]. It is an example of indigenous development, with private nuclear vendors delivering various equipment and components. The SMR-55MWe is also modelled on PWR technology, featuring a block-type, highly modular design. The lead twin reactor units are planned for installation at the DAE site by 2033. The objective of the SMR-55MWe, once developed, is to deploy it in remote locations. Plans are in place to involve the Indian industry so that the required equipment for the SMR-55MWe will be produced domestically. Further, the DAE site plans to build a demonstration plant for a 5 MWth High-Temperature Gas-Cooled Reactor (HTGCR) for hydrogen production. This reactor will be coupled with suitable copper–chlorine (Cu-Cl) and iodine-sulphur (I-S) processes to generate hydrogen at 650°C, a clean fuel[28]. These two thermochemical processes have been developed and demonstrated at BARC. Apart from these models, the government is likely to deploy 220 MW Bharat Small Reactors (BSR). India has achieved commercial maturity in indigenous Pressurised Heavy Water Reactor (PHWR) technology, which will serve as a strong foundation for advancing the country’s goals of developing and deploying small reactors.

Legal Framework for Involvement of Civilian Industry in India[29]

On 15 December 2025, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, was introduced in Parliament, signalling a decisive shift in India’s nuclear energy governance framework. With the President’s assent on 20 December 2025, the SHANTI Bill became an Act of Parliament. It substitutes the Atomic Energy Act (AEA), 1962 and the Civil Liability for Nuclear Damage Act (CLNDA), 2010.

The Act broadens the category of entities eligible to apply for a nuclear licence to ‘build, own, operate and decommission nuclear power plants or reactors’, without diluting the Central Government’s control over all strategically sensitive domains, including fissile material accounting, enrichment, isotopic separation and retaining control over sensitive activities such as spent fuel reprocessing and strategic waste management[30]. The involvement of private firms will help mobilise large-scale financial resources, reducing the burden on public finances while accelerating project execution through greater efficiency. It may also contribute to technological innovation by leveraging global partnerships.

The international nuclear liability law[31] establishes a two-tier compensation mechanism. First, liability is strictly and exclusively channelled to the nuclear operator[32].  Second, if national compensation is insufficient to satisfy all claims for nuclear damage, supplementary compensation is provided through an international fund, with contributions from contracting parties in accordance with a fixed formula.  The CLNDA 2010 had departed from international norms by introducing an expansive right of recourse against suppliers. These provisions created legal uncertainty and discouraged foreign suppliers. The SHANTI Act has aligned India’s nuclear liability regime with established international CSC practice while preserving robust victim compensation through a government-backed mechanism.

Long-Term Mission for Exploitation of Nuclear Energy[33]

The Nuclear Energy Mission (NEM), mentioned in the Union Budget of  2025–26, set the objective of 100 GW of nuclear power generation capacity by 2047. The mission also supports India’s broader goal of achieving net zero carbon emissions by 2070.

The following measures have been put in place to drive this vision:-

  • Financial Commitment: The NEM allocates Rs 20,000 crore towards the design, development, and deployment of SMRs, signalling a serious long-term investment in indigenous nuclear technology.
  • SMRs: Operationalisation of at least five indigenously designed SMRs by 2033.
  • BARC Initiatives:Development of next-generation reactor designs, including the 200 MWe Bharat Small Modular Reactor (BSMR-200), the 55 MWe SMR-55, and a High-Temperature Gas-Cooled Reactor of up to 5 MWth (Megawatt thermal) designed for hydrogen generation.
  • SHANTI Act, 2025: Already enacted.

Conclusion

The NEM is pursuing a vision of an energy-secure India, in which nuclear energy plays an important part in ultimately achieving energy sovereignty. The attainment of PFBR criticality is a positive step, but much more is needed in policy formulation, adequate funding, and institutional and industrial support for research, development, and manufacturing to achieve the avowed goal of a self-reliant and energy-independent India.

Author Brief Bio: Major General (Retired) Ajay Kumar Chaturvedi, a highly decorated officer from The Corps of Engineers of Indian Army, is a post graduate engineer in mechanical engineering (combustion & Propulsion) from IIT Chennai, MMS from the Osmania University Hyderabad (LDMC), and M. Phil from University of Madras (NDC). He is a qualified Level II (Advanced) coach in Rowing and a specialist in training methods and bio mechanics.

Endnotes:

[1] TQQ Syndrome refers to a Technology, Quality and Quantity problem. The resources which India has are either qualitatively poor, like coal, or quantitatively scarce, like petroleum and uranium. Where India is still short of technology, such as Thorium, solar panel and wafer technology, we have plenty of resources. We have end-to-end technology for the exploitation of petroleum products and uranium, but we are short of resources.

[2] International Energy Agency, “The Middle East and Global Energy Markets,” IEA, https://www.iea.org/topics/the-middle-east-and-global-energy-markets.

[3] “Rooftop Solar Panels: New Rules Effective 1 June,” NDTV Business, https://www.ndtv.com/business-news/rooftop-solar-panel-june-1-new-rules-india-manufacturing-higher-price-china-imports-renewable-energy-11573804.

[4] Puja Das, “India’s Critical Mineral Imports Remain Highly Concentrated, Exposing Supply Risks and Driving Diversification Push,” Down to Earth, 1 May 2026.

[5] “3 Reasons Why Nuclear Is Clean and Sustainable,” Office of Nuclear Energy, US Department of Energy, https://www.energy.gov/ne/articles/3-reasons-why-nuclear-clean-and-sustainable.

[6] Nuclear Suppliers Group policies impact fuel supply by restricting nuclear trade to states that do not accept strict IAEA Safeguards. They prevent the spread of sensitive enrichment and reprocessing technologies, which encourages non-nuclear-weapon states to rely on international fuel services rather than building domestic enrichment facilities.

[7] “India, China & the NPT,” World Nuclear Association, https://world-nuclear.org/information-library/appendices/india,-china-npt.

[8] Ibid.

[9] Rakesh Sood, “India and the NSG: Unfinished Business,” Observer Research Foundation, 25 July 2016, https://www.orfonline.org/research/india-and-the-nsg-unfinished-business.

[10] “About NPCIL,” Nuclear Power Corporation of India Limited, https://www.npcil.nic.in/content/328_1_AboutNPCIL.aspx.

[11] “Canada Uranium Deal,” Vajiram & Ravi, https://vajiramandravi.com/current-affairs/canada-uranium-deal/.

[12] “India to Build 18 Nuclear Reactors by 2032,” Power Technology, 26 February 2024, https://www.power-technology.com/news/india-18-nuclear-reactors-2032/.

[13] “Thorium Fuel Cycle,” Bhabha Atomic Research Centre, https://www.barc.gov.in/randd/tfc.html.

[14] Breeding is done in a reactor which is fuelled with uranium 238 and Thorium-232. After reaction extra neutrons are produced which are absorbed by the fertile material to transmute into fissile material which can undergo fission reaction.

[15] R. D. Kale, “India’s Fast Reactor Programme – A Review and Critical Assessment,” Progress in Nuclear Energy, 1 April 2020, https://www.sciencedirect.com/science/article/pii/S0149197020300251.

[16] “IGC Newsletter,” vol. 62 (October 2004), Indira Gandhi Centre for Atomic Research, https://web.archive.org/web/20150924033217/http://www.igcar.ernet.in/lis/nl62/igc62.pdf.

[17] “IGC Newsletter,” vol. 69 (July 2006), Indira Gandhi Centre for Atomic Research, https://www.igcar.gov.in/newsletter/igc69.pdf.

[18] “IGC Newsletter,” vol. 61 (July 2004), Indira Gandhi Centre for Atomic Research, https://www.igcar.gov.in/newsletter/igc61.pdf.

[19] S. Usha et al., “Research Reactor KAMINI,” Nuclear Engineering and Design 236, nos. 7–8 (April 2006): 872–880, https://www.sciencedirect.com/science/article/pii/S0029549306000823.

[20] “Bharatiya Nabhikiya Vidyut Nigam Ltd (BHAVINI),” Department of Atomic Energy, Government of India, https://www.indiascienceandtechnology.gov.in/organisations/ministry-and-departments/department-atomic-energy-dae-govt-india/bharatiya-nabhikiya-vidyut-nigam-ltd-bhavini.

[21] Ibid.

[22] “US Lifts Decades-Old Restrictions on BARC, IGCAR and Indian Rare Earths in Diplomatic Breakthrough with India,” The Economic Times, 15 January 2025, https://economictimes.indiatimes.com/news/economy/foreign-trade/us-lifts-decades-old-restrictions-on-barc-igcar-and-indian-rare-earths-in-diplomatic-breakthrough-with-india/articleshow/117272765.cms.

[23] Prateek Tripathi, “India’s PFBR Achieves Criticality: Implications for India’s Nuclear Future,” expert speech, Raisina Debates (Observer Research Foundation, 30 April 2026).

[24] “What Are Small Modular Reactors (SMRs)?,” International Atomic Energy Agency, https://www.iaea.org/newscenter/news/what-are-small-modular-reactors-smrs.

[25] Niranjan Chandrashekhar Oak, “Small Modular Reactors and India: Institutional Drivers and Challenges,” MP-IDSA Issue Brief, 19 September 2025, https://idsa.in/publisher/issuebrief/small-modular-reactors-and-india-institutional-drivers-and-challenges.

[26] “Lok Sabha Unstarred Question No. 2264,” Department of Atomic Energy, Government of India, 12 March 2025, https://sansad.in/getFile/loksabhaquestions/annex/184/AU2264_DSSTVN.pdf.

[27] “Parliament Question: Progress of the Bharat Small Modular Reactor,” Press Information Bureau, Department of Atomic Energy, Government of India, 3 April 2025, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2118377.

[28] Ibid.

[29] Niranjan Chandrashekhar Oak, “SHANTI Act and India’s Nuclear Energy Governance Framework,” MP-IDSA, 17 February 2026, https://idsa.in/publisher/issuebrief/shanti-act-and-indias-nuclear-energy-governance-framework.

[30] SHANTI Act, chap. II, 7–9.

[31] “Convention on Supplementary Compensation for Nuclear Damage,” INFCIRC/567, International Atomic Energy Agency, 22 July 1998, https://www.iaea.org/sites/default/files/infcirc567.pdf.

[32] “Convention on Supplementary Compensation for Nuclear Damage,” INFCIRC/567, International Atomic Energy Agency, 22 July 1998, https://www.iaea.org/sites/default/files/infcirc567.pdf.

[33] “India’s Nuclear Energy Programme: Fact Sheet,” Press Information Bureau, Government of India, https://www.pib.gov.in/FactsheetDetails.aspx?id=150617&NoteId=150617&ModuleId=16®=3&lang=1.

 

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