PANELISTS:
Leveraging Thorium and Strategic Nuclear Vision
Mr. Hans Raj Verma, IAS (Retd.)
Director General, COSIDICI | Former Chairman, TNEB & TEDA | Member, India Energy Forum
I bring two decades of operational experience in the nuclear power sector. Nuclear power cannot function in isolation—it impacts industry, climate initiatives, MSMEs, supply chains, youth employment, and India’s path toward developed nation status. I have served as chairman of TNEB and worked within the mining department, where I gained experience with monazite, which is abundantly found in Tamil Nadu’s beach sands.
Let me begin by acknowledging Homi Bhabha’s visionary work. In the 1950s, he envisioned harnessing thorium for India’s civilian nuclear program. India possesses 25% of the world’s thorium reserves in beach sands. Bhabha designed the three-stage nuclear power program. In 1974, India successfully conducted a peaceful nuclear explosion. However, international sanctions followed, forcing the industry to develop indigenous pressurized heavy water reactors with excellent safety records.
The 2008 US-India civil nuclear deal marked a significant turning point—a landmark partnership between President George Bush and Dr. Manmohan Singh. Despite India’s non-membership in the Non-Proliferation Treaty, we gained access to raw materials and technology. In 2010, we enacted the Civil Liability for Nuclear Damage Act, which allowed operators to pursue recourse against suppliers. Unfortunately, this provision deterred foreign investors from entering the market. Consequently, despite the 123 agreement, we saw no foreign participation for 15 years, with Kudankulam—financed by Rosatom—being the sole exception.
Global climate change, sustainability imperatives, and carbon pricing have become critical concerns. The Carbon Border Adjustment Mechanism (CBAM) imposes additional tariffs up to 30% on steel and aluminum that exceed EU carbon standards. India must establish itself as a manufacturing hub with sustainable, green production. Our net-zero target is 2070. Today, renewables constitute 50% of our energy capacity—primarily solar and wind.
However, renewable energy is inherently intermittent. It depends heavily on expensive battery storage and poses risks to grid stability. Germany’s experience illustrates this problem: after decommissioning 25% of its nuclear capacity, on favorable days renewables provide 74% of power, but on unfavorable days, this drops to just 4%, destabilizing the grid. We require baseload power operating continuously 24/7. Currently, fossil fuels supply 70% of India’s baseload power.
As a growing G20 nation, India faces increasing power demands. The Human Development Index for G20 nations exceeds 0.9, indicating high per capita power requirements. Currently, India requires 1,640 terawatt hours. To reach G20 standards by 2047, we will need 25,000 terawatt hours. Power availability is the most critical determinant of human development.
This is where the Shanti Act—enacted in December 2025—becomes essential. Its core purpose is the sustainable development of nuclear energy to transform India. Nuclear power is clean, green, baseload, and dispatchable—it stabilizes the grid. Globally, nuclear power comprises 10% of energy portfolios. In India, it represents only 3%. Given our power needs, it should constitute at least 15% of our energy mix. This is the foundation of the 100 gigawatt by 2047 target.
Safety concerns will inevitably be raised. Three Mile Island (1979), Chernobyl (1986), and Fukushima (2011) remain in collective memory. However, nuclear energy—when equipped with proper safeguards—is inherently safe. At the 2023 COP28 conference, 30 nations committed to tripling their nuclear capacity. China leads in reactor construction. Quality of life, climate change mitigation, grid stability, and human development all support expanding nuclear energy.
Our uranium reserves are of lower quality compared to Canadian resources, and Russia supplies 40% of global uranium. We cannot base our long-term strategy on uranium imports. Instead, we must pursue a thorium-based approach. The three-stage program is our solution. Stage One involves pressurized heavy water reactors generating enriched uranium and plutonium-239. Stage Two features the fast breeder reactor in Kalpakkam—core loading is complete, and operational status is expected by September 2026. Stage Three combines plutonium and thorium to generate additional uranium in a closed cycle, achieving India’s self-sufficiency.
Alternatively, Clean Core Technology, founded by Indians in the United States with Mehul Shah as CEO and Anil Kakodkar in an advisory capacity, has developed HALEU fuel—also called ANEEL fuel (Advanced Nuclear Energy for Enriching Life). This fuel combines high levels of thorium and uranium, potentially revolutionizing thorium-based energy by enabling us to progress directly from Stage One to Stage Three.
Through my experience across mining departments, I learned that monazite yields 60% rare earth oxides and 40% thorium. Rare earth oxides are essential for producing rare earth magnets. China currently controls 90% of the global rare earth magnet market and leverages this dominance in geopolitical negotiations.
The 100 gigawatt initiative creates a business opportunity valued at 15 lakh crores. Localizing supply chains is crucial: while the Western world possesses technology, India has the talent and manpower. All manufacturing components will occur domestically, serving both domestic and export markets. MSMEs face enormous opportunities in producing specialized components. This sector will create new employment with strong demand for skilled workers.
I call on industrialists and MSME owners to examine your production processes carefully. What is the carbon footprint of my products? Will they remain viable? Bankers and financial institutions must review your portfolios: the MSME and industrial loans you have extended—are they sustainable? Will these sectors endure the next seven to eight years with sustainability embedded in their operations?
This is India’s century. We possess talent, favorable demographics, clear intent, and a defined path. By 2047, we will achieve developed nation status with an HDI matching the best G20 nations. I invite partnerships from all stakeholders. Together, let’s advance India toward developed nation status through sustainable nuclear power.
Opportunities And Challenges in India’s Nuclear Expansion
Mr. M. Nandakumar
Managing Director, Nanwin Energy LLP
Research indicates that GDP growth is significantly affected by climate change. Without substantial mitigation measures, approximately 10% of GDP could be lost by 2030. Tamil Nadu’s economy, valued at $0.4 trillion GSDP with nearly 30% driven by manufacturing, cannot sustain this growth trajectory without addressing climate change and pursuing responsible expansion.
Tamil Nadu is performing well, with consistent growth exceeding 10% over decades. The economic survey projects growth of 7.3 to 7.4% in financial year 2026. Compared to the world’s 2–3% growth rate, our 7–8% performance is double the global average. Tamil Nadu achieved 11.2% growth in the last financial year, the highest among Indian states. We rank at the top in Human Development Index measures. Our current economic scale is $0.4 trillion; under the chief minister’s vision, we aim to reach $1 trillion by 2030.
Climate change is at our doorstep. Global temperatures have risen since the pre-industrial era. We must now focus on adaptation and resilience while managing ongoing warming. Adaptation and resilience require an estimated $2.3 trillion by 2030. Mitigation—preventing further damage—demands $23 trillion over time. Coal demand will peak within two years. Gas demand will peak by 2030. Oil demand will peak mid-2030s.
Emissions fall into three categories: Type One includes direct emissions from operations. Type Two encompasses indirect emissions from electricity consumption sources. Type Three involves emissions across the entire supply chain. Notably, nearly 97.9% of emissions originate from supply chains. Addressing climate change requires examining the entire value chain, not merely direct operations.
The transition to renewable energy continues rapidly. Battery costs have declined substantially. India is installing significant battery storage capacity. Tamil Nadu has tendered 1,000 megawatt-hours of battery storage, with another 1,500 megawatt-hours tender in progress. India leads globally in renewable energy deployment, and large IT infrastructure is moving to renewable energy platforms. Small modular reactors (SMRs) represent the next technological frontier.
Existing coal-fired power plants, many dating from the 1950s and 1960s, will soon require retirement. These facilities can be repurposed to accommodate approximately 200 small modular reactors of 220 megawatts each. Technology companies like Westinghouse and GE are actively seeking investment opportunities in India’s nuclear sector. SMRs offer multiple configurations: 50 megawatts for small captive industrial plants and 5 megawatts specifically for hydrogen generation. This sector represents a 10,000 crore business opportunity. Infrastructure development, waste management, supply chain localization, worker training, and the ANEEL (Advanced Nuclear Energy for Enriched Life) program—developed in Idaho labs—all present significant opportunities. India possesses the world’s largest thorium reserves.
Nuclear health and safety products can be exported throughout Southeast Asia. The supply chain welcomes diverse participation: major players pursue large-ticket investments, medium-sized companies serve as manufacturers, startups explore digital and technology solutions, and financial investors structure long-term partnerships.
Public perception of nuclear energy remains cautious, often driven by fear rather than facts. During my work on projects at Kakrapar and Kudankulam, I witnessed this firsthand. When workers visited the facilities, initial anxiety dissipated once they understood that standard engineering practices apply universally. Our team executed complex nuclear reactor lining work—highly sophisticated metal construction reaching 130 meters in height.
The safety record speaks clearly: nuclear power causes 0.07 deaths per terawatt hour, while coal causes 24.6 deaths per terawatt hour and oil causes 18.4. Modern waste management employs high-end vitrification techniques. NPCIL maintains an exceptional team of experienced professionals. The path forward involves relaxing monopoly restrictions to welcome private investors while maintaining rigorous safety standards. India’s nuclear manufacturing capabilities must be developed to serve both domestic and global markets. Long-term opportunities will be substantial for future generations. Supply chain opportunities extend far beyond India’s borders. We will absolutely achieve the 100 gigawatt target.
Regulatory Framework for India’s Nuclear Future
Er. M. Chandrasekar
Former Chairman, Tamil Nadu Electricity Regulatory Commission (TNERC)
Speaking last is challenging because my colleagues have covered most critical points. Nevertheless, I want to emphasize why nuclear power is essential. India’s total installed power capacity stands at approximately 455 gigawatts. Thermal power comprises around 250 gigawatts. Over the past 10 years, we have expanded renewable capacity to nearly 200 gigawatts. Despite these renewables, baseload power still depends almost entirely on fossil fuel thermal stations.
India has committed to achieving net-zero emissions by 2070. However, if we continue deriving 75% of our energy from coal, this target becomes mathematically impossible. This fundamental contradiction is the primary rationale for nuclear expansion. We require baseload power operating reliably 24 hours daily. Solar and wind energy are inherently intermittent. Solar power is available only during daylight hours. Wind power is available only four to five months annually. How can we manage peak evening demand? Currently, we struggle to meet evening peak demands. Electricity prices escalate significantly between 6 and 10 p.m., reaching 10–12 rupees per unit, while daytime prices sometimes drop to nearly zero because excess solar generation floods the market. During evening and nighttime hours, we lack sufficient power and must operate all thermal generators at full capacity to satisfy demand.
The solution involves developing grid-scale energy storage for solar generation captured during peak production hours. Battery prices have declined significantly. India is expanding battery storage capacity. Tamil Nadu has already tendered 1,000 megawatt-hours of battery storage, with an additional 1,500 megawatt-hours tender in progress. This 2,500 megawatt-hour installation will store energy during solar production periods and release it during evening peaks. However, battery storage addresses only short-term storage needs. Long-term storage through batteries alone is prohibitively expensive.
We must develop pumped hydro storage schemes. Kadamparai in Tamil Nadu provides an example: four units of 100 megawatts each total 400 megawatts, representing India’s first pumped storage project. Originally, operators pumped water from lower to upper reservoirs during nighttime when demand was minimal. The operational paradigm has changed fundamentally. Now, abundant daytime solar generation creates favorable conditions for daytime pumping between 10 a.m. and 2 p.m., when electricity prices are lowest. Water stored in upper reservoirs is released through generators by 6 p.m., generating power during peak evening demand.
Tamil Nadu has identified approximately 14,000 megawatts of potential pumped storage capacity. Feasibility studies have been completed. A 500-megawatt project is underway in Kundah. NTPC (National Thermal Power Corporation) and private partners have been awarded a 1,000-megawatt project. Additional projects remain in awarding stages. We require energy storage—whether through batteries or water—to manage the intermittency of solar and wind generation. However, storage addresses a different problem than baseload power generation. The essential question remains: how do we provide reliable baseload power? The Shanti Act was enacted specifically to address baseload power requirements.
We need clean energy. Simultaneously, we require reliable Round-The-Clock (RTC) power generation. Nuclear energy is the only viable option. This necessity motivated India to enact the Shanti Act, classifying nuclear energy as clean energy. We must remove regulatory obstacles. Currently, nuclear capacity represents only 8.8 gigawatts of our 455-gigawatt installed capacity—delivering just 3% of our energy needs. To achieve our net-zero target, we must transition 75% of our energy needs away from fossil fuels and toward nuclear. The 100-gigawatt target may ultimately prove insufficient. We must progress significantly further.
The Shanti Act specifically enables private sector participation. We require new technologies and international R&D collaboration. The Act provides these opportunities. A significant modification to the previous Civil Liability for Nuclear Damage (CLND) Act is noteworthy: previously, both suppliers and operators bore responsibility for nuclear incident damages. The new Act removes suppliers from this liability structure. Only operators bear compensation responsibility. This represents a major legislative shift.
We expect substantial international investment and advanced technologies will enter the Indian market. The government has allocated 20,000 crores during this fiscal year to develop five small modular reactors. One project is located in Tarapur and targets 220 megawatts. Three different SMR models are being developed: a 220-megawatt model, a 55-megawatt model, and a 5-megawatt model for hydrogen production. The Bhabha Atomic Research Center is developing these models indigenously. The target commissioning date is 2031, with expectations for five to six SMRs operational by that time.
Private sector participation, now legally permitted, should accelerate nuclear development. New technologies may enter the market. This represents a significant step forward for India’s nuclear expansion. We have no alternative. We cannot continue emitting carbon dioxide indefinitely. Thermal power generation is the primary source of current emissions. India burns enormous quantities of coal daily. No viable alternative exists at present. We must transition decisively toward nuclear energy.
Modern reactor design incorporates numerous safety features. Following the Japan incident, passive safety technology was developed. Even during power loss from earthquakes or tsunamis, reactors automatically cool through natural convection without external power. Technology continues advancing. Safety is engineered into modern designs. We need not fear future nuclear incidents because enhanced safety features are integral to contemporary reactor technology.
The United States has 17–18 companies conducting significant nuclear research. China commissioned a 220-megawatt SMR in 2023 and continues developing small modular reactors. India must keep pace with international progress to ensure stable, reliable electricity for economic growth. SMRs present tremendous opportunities for captive industrial users—steel mills, aluminum smelters, and data centers operating in India consume enormous power quantities. Data centers typically demand 200–400 megawatts each. A single 220-megawatt SMR can serve their requirements, with surplus capacity available for grid sale.
Captive power generation offers advantages. Currently, initial capital costs are high—approximately 16–20 crores per megawatt. Over time, costs will decline. Until costs become competitive with thermal rates (five to six rupees per unit), government incentive schemes similar to PLI (Production-Linked Incentive) could help level the playing field for potential captive users.
The Shanti Act permits both private participation and captive power generation. The Atomic Energy Regulatory Board (AERB) now possesses statutory authority equivalent to electricity regulatory commissions. The AERB is statutorily independent, operating outside direct government control. A dedicated compensation commission addresses all claims resulting from nuclear incidents. Appeal provisions exist for aggrieved parties. If disputes arise with the compensation commission, recourse exists through the electricity appellate tribunal. Further appeals can reach the Supreme Court.
These regulatory provisions parallel the electricity sector’s framework. Such structural safeguards encourage private investment. Previously, disputes required government adjudication exclusively. Now, comprehensive legal remedies exist. Parties can first approach regulatory bodies, then access appellate tribunals, with ultimate recourse to the Supreme Court. This architecture inspires confidence among private investors and attracts foreign capital. The government retains absolute control of the fuel cycle—only the central government manages nuclear fuel. Safety responsibilities remain exclusively governmental; private parties handle investment and power utilization aspects only. We can be assured that comprehensive safeguards protect nuclear safety interests.
