How Centre is helping ageing nuclear reactors stay operational
What's the story
The Indian government has announced a new pricing policy for atomic power, allowing older nuclear power plants to charge consumers an additional 0.5 rupees per kilowatt hour (kWh). The "special incentive" is applicable to plants that have been in operation for over 30 years and will be effective retroactively from April 2022, for five years. This is aimed at helping the state-run Nuclear Power Corporation of India Limited (NPCIL) generate more income to fund new projects and support existing ones.
Energy strategy
Nuclear power's role in India's energy mix
India is heavily relying on coal and nuclear power to meet peak evening electricity demand. This comes as nearly 130GW of solar capacity goes offline during these hours. The country has set an ambitious target to increase its nuclear power capacity to 100GW by 2047. Currently, about a fifth of India's nuclear capacity is over three decades old and eligible for the new pricing policy.
Capacity contribution
Contribution to India's electricity generation
Nuclear power contributes to less than 2% of India's total installed electricity generation capacity. In the fiscal year ending March 2025, Indian nuclear power plants earned an average of ₹3.83 per kilowatt hour. The government is also in the process of amending the country's nuclear laws to attract private investors and supplement NPCIL's efforts toward achieving its ambitious nuclear power expansion goals.