New Delhi: The Indian government is actively considering the provision of incentives akin to a production linked incentive (PLI) framework for the production of Small Modular Reactors (SMRs). This move is aimed at enhancing the role of nuclear power within India’s energy spectrum.
SMRs are compact reactors that can be manufactured in factories, in contrast to traditional nuclear reactors, which are constructed on-site. Each unit of an SMR typically has a power capacity of up to 300 MW, which is about a third of the output of conventional nuclear reactors. Their mobile and versatile nature allows them to be deployed in regions unsuitable for larger nuclear plants.
One source familiar with the matter mentioned, “Numerous clean energy technologies have flourished in the country with initial government backing, and for SMRs, a similar initiative is essential to attract private investments and bolster production, thereby reducing costs.”
Production Linked Incentive (PLI) schemes, launched in 2020, empower the government to provide financial incentives based on a percentage of the sales value. To date, the government has introduced PLI schemes for 14 sectors with a combined allocation of INR 1.97 trillion.
Moreover, the Ministry of New and Renewable Energy has unveiled the Strategic Interventions for Green Hydrogen Transition (Sight) program to stimulate the production of green hydrogen and electrolyzers, with a budget exceeding INR 17,000 crore.
The second source mentioned that prior to introducing the scheme, the government plans to have a prototype made in India. “The initial step involves constructing a prototype, followed by the consideration of commercial-scale production. Private entities have expressed significant interest in manufacturing SMRs in India.”
Furthermore, the government is diligently working on regulatory aspects to ensure the safety and safeguards concerning the adoption and use of SMRs.
India is currently in discussions with France, Russia, South Korea, and the United States for essential technologies and investments. The official correspondence sent to the Department of Atomic Energy had not been addressed at the time of press.
The drive for nuclear power, regarded as a cleaner and non-fossil fuel source, coincides with India’s ambitious target of achieving net-zero carbon emissions by 2070. Presently, India has an installed nuclear power capacity of 7.48 GW, with expectations to increase it to 22.28 GW by 2031.
In August, Union Minister of State for Atomic Energy and Space, Jitendra Singh, stated that the government is exploring opportunities for collaboration with other countries and promoting indigenous development of SMRs. He emphasized that SMRs represent a promising technology for industrial decarbonization, particularly in scenarios demanding a steady and uninterrupted power supply.
A report by NITI Aayog underscores the need for collaboration between the government and the private sector to mitigate risks and expedite commercialization due to the nascent nature of SMR technology and investor concerns regarding business and regulatory risks.
SMRs have the potential to accelerate the energy transition by facilitating a higher adoption of nuclear energy, thanks to attributes like minimal nuclear material inventory per reactor, suitability for deployment in challenging locations, and staggered capital expenditure by introducing successive SMR modules.
