Budget 2026 likely to focus on nuclear power in India
What's the story
As India gears up for its Union Budget 2026, analysts are expecting the government to announce additional supportive measures for the renewable energy sector. This is especially true for nuclear power, which has been a key focus area in recent years. The move comes as part of India's ambitious plan to install 500 GW of non-fossil fuel capacity by 2030 and achieve net-zero emissions by 2070.
Energy transition
Nuclear power's role in India's renewable energy mix
Nuclear power, despite being a non-fossil fuel source, contributes less to India's renewable energy mix than other sources. However, the government is taking steps to boost nuclear power capacity and achieve its target of 50% non-fossil fuel energy mix. The plan is to ramp up nuclear power capacity to 100GW by 2047 with intermediate targets of reaching around 22-23GW by around 2031-32.
Policy predictions
Brokerage firm predicts supportive measures for nuclear sector
Nuvama Institutional Equities, a domestic brokerage firm, expects the Indian government to announce supportive policy measures for the nuclear sector. These might include giving nuclear projects access to green financing and removing them from the Central Pollution Control Board's (CPCB) 'red' category. The firm also predicts GST rationalization for ongoing and upcoming nuclear projects as well as inclusion in national green taxonomy.
Market impact
Private players could benefit from SHANTI Bill changes
The SHANTI Bill's opening of nuclear power to private players could lead to major changes in the sector. Nuvama Institutional Equities believes engineering and power companies such as L&T, BHEL, and NTPC could be major beneficiaries of these policy changes. Anand Rathi Research also expects a Production Linked Incentive (PLI) scheme worth ₹180-200 billion for the nuclear sector, focusing on critical components like heavy forgings, pressure vessels, and steel alloys.