New Delhi (ABC Live): India has quietly crossed a strategic inflection point in its nuclear energy policy. Until recently, nuclear power in India remained confined to large, centralised infrastructure projects. However, that model is now changing. As the Department of Atomic Energy (DAE) and the Bhabha Atomic Research Centre (BARC) advance Bharat Small Modular Reactors (BSMR-200 MWe and SMR-55 MWe), India is rapidly repositioning nuclear energy as a distributed industrial decarbonisation tool.

In practical terms, SMRs are being designed to serve steel plants, cement factories, off-grid defence zones, and hydrogen production hubs. As a result, nuclear power is now moving directly into India’s industrial heartland rather than staying confined to distant nuclear parks.

At the same time, the government’s newly articulated financial and operational structures for SMR deployment reveal three deeper structural shifts. First, there is now a calibrated opening for private industry participation. Second, a full-scale Make-in-India nuclear manufacturing ecosystem is taking shape. Third, and most importantly, a legal and regulatory framework is being shaped for the era of carbon border taxes and climate trade sanctions.

Therefore, this ABC Live “Explained” report brings together technology, policy, finance, law, carbon economics, safety regulation, and industrial ownership models into one fully integrated framework.

1. What Is India Building? The SMR Technology Stack

India’s SMR programme now rests on three parallel reactor development tracks. Together, these three designs define India’s future nuclear industrial grid.

BSMR-200 MWe (PWR-Based)

• First, it uses Light Water Reactor technology based on a Pressurised Water Reactor (PWR) design.

• Next, it allows modular deployment at retired coal plant sites.

• Finally, it is dedicated to process industries and grid support.

SMR-55 MWe

• By contrast, this is a smaller industrial captive version.

• Specifically, it is designed for cement, steel, fertiliser, and off-grid locations.

High-Temperature Gas-Cooled Reactor (≤5 MWth)

• Meanwhile, this design targets hydrogen production.

• Importantly, it enables green hydrogen without intermittent renewables.

• At present, it remains in the advanced high-temperature materials R&D phase.

Strategic shift:
Unlike traditional PHWR mega-reactors, SMRs enable distributed industrial nuclearisation. So far, India had never operationalised such a model at scale.

2. Why SMRs Matter: Coal Repurposing, Heavy Industry & Hydrogen

SMRs are not being positioned as electricity generators alone. Instead, they are emerging as industrial decarbonisation engines.

Consequently, SMRs now operate at the intersection of:

• Climate policy,

• Industrial policy,

• Export competitiveness, and

• National security infrastructure.

In effect, very few energy technologies today sit at the convergence of all four domains.

3. Make-in-India Nuclear Manufacturing: The Real Power Shift

India already localises most PHWR component manufacturing. Now, however, that same ecosystem is being structurally migrated to SMRs. As a result, domestic industry is preparing to supply:

• Reactor pressure vessels,

• Primary coolant pumps,

• Heat exchangers,

• Control rod drive mechanisms,

• Instrumentation and digital control systems, and

• Special steels and heavy forgings.

EPC Model

Under this framework, private industry will participate through Engineering, Procurement & Construction (EPC) contracts. Accordingly, India is building a complete domestic nuclear supply chain.

Strategic Consequence

In turn, India is no longer positioning itself merely as a user of SMRs. Rather, it is preparing to become a future exporter of SMR manufacturing capability to global markets that are now rapidly shifting toward small-scale nuclear.

4. Financial & Business Viability: How SMR Economics Works

CAPEX Logic

• To begin with, SMRs lower the upfront nuclear capital shock.

• Moreover, modular construction reduces financing risk.

• At the same time, staggered commissioning enables steady revenue phasing.

OPEX Logic

• Over time, nuclear fuel cycles remain stable for decades.

• In addition, carbon compliance costs stay minimal.

• Therefore, baseload pricing becomes predictable.

Ownership Incentive

Private industry may receive:

• Power ownership rights (as permitted under the Atomic Energy Act), and

• Guaranteed captive access to green power.

Carbon Tax Shield

With EU CBAM and global carbon tariffs emerging:

• On the one hand, SMR-powered steel and cement become export-ready green products.

• On the other hand, SMRs act as a direct hedge against climate trade sanctions.

Decarbonisation ROI

Taken together, SMRs deliver both environmental and commercial returns.

Conclusion: India’s SMRs Are Not Just Power Plants—They Are Economic Weapons

India’s SMR programme marks:

• First, a structural shift in how nuclear power intersects with industry.

• Second, a pre-emptive response to future carbon trade barriers.

• Third, a controlled opening of private participation without statutory nuclear privatisation.

• Finally, a new strategic pillar for hydrogen sovereignty.

If coal powered India’s past growth, then SMRs may power India’s climate-compliant industrial future.

FAQ: India’s Small Modular Reactor Strategy

Can private companies own nuclear reactors in India?

Full private ownership and operation of nuclear reactors is restricted under the Atomic Energy Act of 1962. However, private companies can participate through EPC contracts, component manufacturing, nuclear supply chains and power purchase or captive-consumption arrangements structured within the existing legal framework.

Why are SMRs important compared to large nuclear plants?

SMRs reduce capital risk, allow modular and faster deployment, enable integration with industrial sites and off-grid areas, and provide both electricity and process heat. They complement large reactors rather than replace them, and can be deployed closer to demand centres.

Do SMRs increase nuclear waste risks?

India already runs established vitrification and monitored disposal systems for nuclear waste under the Atomic Energy Act, 1962 and the Atomic Energy (Safe Disposal of Radioactive Wastes) Rules, 1987. SMRs will follow the same philosophy of minimisation, immobilisation and secure storage. However, fuel configuration differences will require backend re-engineering of reprocessing technologies.

How do SMRs help India’s export competitiveness?

By powering steel, cement, aluminium and fertiliser production with low-carbon electricity and heat, SMRs reduce embedded emissions in exported goods. This directly mitigates exposure to carbon border adjustment mechanisms such as the EU’s CBAM and strengthens India’s bargaining position in trade and climate negotiations.