**Indian Oil Corp. Explores Nuclear Power Expansion with SMRs**
Indian Oil Corporation Ltd. is developing a new strategy to establish small modular reactors (SMRs) and large nuclear power plants across India, as stated by Chairman Arvinder Singh Sahney. The country’s largest oil refiner and marketer is revisiting its nuclear diversification plans, having previously partnered with Nuclear Power Corporation of India Ltd. (NPCIL) for this initiative. While specific details regarding technology partners were not disclosed, Sahney emphasized a renewed focus on nuclear energy.
The Bharat SMR (BSR) is being designed with a capacity of 200 MWe, alongside a smaller variant of 55 MWe currently in development. Despite this, Indian Oil did not engage in NPCIL’s recent bids for establishing reactors for captive use. Sahney noted that the energy consumption of Indian Oil’s large refineries is comparable to the output of BSRs, which has prompted the company to consider their construction.
Sahney remarked, “We have not participated in NPCIL’s request for proposal (RFP) process, but we are looking into it in a renewed manner… It was 10 years back when we tied up with NPCIL. But now there is a renewed energy to it.” This renewed interest in nuclear power aligns with the Indian government’s ambitious plans to increase nuclear capacity to 22 GW by 2032 and 100 GW by 2047, up from the current 8.7 GW.
Earlier this year, state-run NTPC Ltd. established a subsidiary, NTPC Parmanu Urja Nigam Ltd., to further explore nuclear energy. With the government opening the sector to private players, several major conglomerates and renewable energy companies are eager to enter this space. Recent reports indicated that companies such as Reliance Industries, Adani Group, Greenko, Vedanta, HPCL-Mittal Energy Ltd., JSW Group, and Hindalco Industries have responded to NPCIL’s RFP for two units of 220-MWe pressurized heavy water reactor (PHWR) BSRs.
The Union budget for FY26 has allocated ₹20,000 crore for a Nuclear Energy Mission focused on research and development of SMRs. Additionally, the FY25 budget proposed government partnerships with the private sector to advance SMR development, while the interim budget in February announced ₹1 trillion in funding for R&D in this area.
A report by SBICAPS highlighted that while nuclear energy offers high-quality, reliable power at low operational costs, concerns over safety, capital costs, and fuel supply have historically overshadowed these benefits. However, the rising demand from AI data centers and cryptocurrency, combined with nuclear energy’s low-carbon baseload capability suitable for replacing thermal plants, has sparked renewed interest. This revival is particularly evident in China, which is developing 30 GW of reactor capacity, with growing interest also seen in India and Turkey, while Europe remains cautious.
**FAQ**
**What is Indian Oil’s strategy regarding nuclear power?**
Indian Oil is exploring the development of small modular reactors (SMRs) and large nuclear power plants in India, aiming to diversify its energy portfolio and align with government plans for increased nuclear capacity.
