In the Union Budget 2026, analysts expect the government to announce additional supportive measures for renewable energy, particularly the nuclear sector, which has remained a key focus area in recent years.
India has set an ambitious target of installing 500 GW of non-fossil fuel capacity by 2030, achieving net-zero emissions by 2070, and meeting 50% of its electricity requirements from renewable energy sources by 2030.
However, power generation from nuclear energy—another non-fossil fuel source—remains low compared with other renewable sources in the country. That said, steps have been initiated to increase nuclear power capacity to meet the target of achieving a 50% energy mix from non-fossil fuels.
India has set a target to expand nuclear power capacity to 100 GW by 2047, with intermediate goals including increasing capacity toward 22–23 GW by around 2031–32. Nuclear power is a clean and environmentally friendly source of base-load electricity, available round the clock.
Brokerages expect more supportive measures for nuclear power
Domestic brokerage firm Nuvama Institutional Equities expects the government of India (GoI) to announce supportive policy measures to place nuclear power on a par with renewable energy. These may include giving nuclear projects access to green financing and removing the sector from the Central Pollution Control Board’s (CPCB) ‘red’ category.
With nuclear power opening up to private players through the SHANTI Bill, the brokerage expects measures such as GST rationalisation for ongoing and upcoming nuclear projects, inclusion in the national green taxonomy, and removal from CPCB’s ‘red’ category of high environmental risk in the Union Budget.
Nuvama believes engineering and power companies such as L&T, BHEL, and NTPC are likely to be key beneficiaries.
Meanwhile, Anand Rathi Research said a PLI incentive for the nuclear sector, estimated at ₹180–200 billion, is under consideration. The PLI scheme is expected to focus on heavy forgings, pressure vessels, steel alloys, and other critical nuclear components. The SHANTI Act is also expected to open the sector further to private participation.
Echoing similar views, Bajaj Broking said the government’s renewable energy push—particularly in wind, solar, and battery energy storage systems (BESS)—along with continued spending on power infrastructure, could be accompanied by policies allowing greater private participation in nuclear projects and improved funding for energy storage.
According to Motilal Oswal, traditional focus areas such as defence, nuclear, electronics, and power are likely to continue receiving strong budgetary support as part of the government’s structural reform agenda.
India’s nuclear capacity
India was among the pioneers in adopting nuclear energy. In 1948, just one year after gaining independence, the country enacted its first Atomic Energy Act and embarked on the development of nuclear power. Initially, India introduced small reactors manufactured by General Electric, eventually becoming the first Asian nation to operate nuclear power plants in 1969.
The Nuclear Power Corporation of India Limited (NPCIL) is India’s state-owned nuclear power company, responsible for generating electricity through nuclear energy. According to its website, NPCIL currently operates 24 commercial nuclear reactors with an installed capacity of 8,780 MW.
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