New Delhi, May 10 (IANS). Global investment firm Morgan Stanley said nuclear energy plays a strategic role in renewable energy in the country, which can provide stable, low-carbon energy without being affected by volatility in fossil fuel prices.
Also said that the nuclear energy capacity in India is 8.2 GW and its share in the total installed energy capacity is about 2 percent and in generation is about 3 percent. This is lower than other countries and the government’s efforts in the nuclear energy sector will encourage expansion.
The government aims to achieve 22 GW of nuclear energy capacity by FY32, with a long-term target of 100 GW by 2047, the report said. The announcement of a dedicated Nuclear Energy Mission, allocating Rs 200 billion to design, develop and install small modular reactors, signals a shift towards more flexible, expandable and potentially private sector-friendly nuclear deployment.
Parallel legislative efforts, including proposed reforms under the Peace Framework, aim to modernize the regulatory environment and increase private participation under regulatory oversight.
“We believe the success of this strategy will depend on implementation, particularly in financing, regulatory reform and supply chain development. Global partnerships will remain important in shaping capacity expansion,” Morgan Stanley said in the report.
Among various countries, Canada will play a key role as it is supplying uranium to India under a new long-term agreement. The US role in India’s nuclear journey is more potential and technology-centric rather than fuel-centric.
The report notes that the US-India civil nuclear framework remains important, and we believe recent steps related to SMR technology transfer and broader commercial interests suggest that if liability and regulatory reforms are implemented, the US could become more relevant in reactor technology, equipment and project partnerships.
India is establishing itself as a global clean energy manufacturing hub with the support of PLI and policy incentives. The focus is shifting to quality and global competitiveness, although procurement processes and deficiencies in the supply chain still remain obstacles.
–IANS
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