From Coal to Clean: India’s 100 GW Nuclear Vision to Transform Energy-Intensive Industries

As India strives to achieve its ambitious economic and environmental goals, the demand for reliable, clean, and scalable energy sources has never been more critical. Heavy industries such as steel, cement, and aluminum, which form the backbone of India’s industrial growth, are energy-intensive and contribute significantly to the nation’s carbon emissions. To address this dual challenge of sustaining industrial expansion while meeting net-zero targets, nuclear energy is emerging as a pivotal solution. Recent advancements in Bharat Small Reactors (BSRs) and Small Modular Reactors (SMRs) underscore India’s strategic shift toward leveraging nuclear power to decarbonize heavy industries and enhance energy security. 

The Carbon Challenge in India's Industrial Backbone

The heavy industrial sector is central to India’s economic narrative. From the vast steel plants in Jharkhand and Odisha to aluminium smelters and sprawling cement factories, these industries are the physical expression of a growing nation. But they are also responsible for some of the highest energy intensities and emission profiles across the Indian economy.

Iron and Steel: India is the world’s second-largest producer of crude steel, with 138.8 million tonnes of finished steel output recorded in FY 2023–24. The sector contributes approximately 2% to national GDP and employs millions across direct and indirect roles. The National Steel Policy (2017) seeks to make the industry globally competitive and technologically advanced, aligning with the broader ‘Make in India’ initiative. However, the environmental cost of this growth is substantial. The steel sector is the largest industrial consumer of energy and a leading source of carbon dioxide emissions. In 2019, it accounted for 39% of the greenhouse gas (GHG) emissions from India’s manufacturing, industrial, and construction sectors. The sector remains heavily dependent on coal, with consumption rising from 57.5 million tonnes in 2016–17 to 78.14 million tonnes in 2023–24.

Aluminium: India ranks among the top global producers of aluminium, supported by rich bauxite reserves and favourable government policies. With a production capacity of 4.1 million tonnes, the country accounts for about 3% of global aluminium output. As demand for aluminium is expected to double by 2033, driven by infrastructure expansion, renewable energy, electric mobility, and other flagship initiatives, energy consumption is set to increase sharply. Aluminium smelting in India requires approximately 14,361 kWh of electricity per tonne—slightly higher than the global average. This electricity is largely sourced from coal-based captive power plants, which had an installed capacity of 9.58 GW as of 2023, contributing significantly to carbon emissions.

Cement: India’s cement industry, the second largest globally after China, produced 600 million tonnes in 2022–23. Government schemes such as PMAY, Smart Cities Mission, Bharatmala, and PM Gati Shakti are expected to spur continued demand growth. Despite its economic importance, the cement sector is the second-largest industrial emitter of GHGs after steel. In 2019, it accounted for around 13% of the sector’s emissions, largely due to its dependence on solid fuels like coal, lignite, and petroleum coke. The sector’s high-temperature processes also limit the applicability of conventional renewable energy sources.

Fertilisers: India stands as the second-largest consumer and third-largest producer of fertilisers globally, with total output reaching 52 million tonnes in 2022–23. Urea, which forms the bulk of fertiliser production, is also the primary contributor to emissions in this sector. The fertiliser industry accounts for 84% of natural gas consumption in India's industrial segment. While coal use has declined, natural gas usage has grown—from 15,429 million standard cubic metres (MMSCM) in 2016–17 to 19,400 MMSCM in 2022–23—reflecting the sector’s energy intensity

BSRs and SMRs: A Nuclear Pivot for Industry

To meet this necessity, India is quietly but decisively shifting gears in its nuclear strategy. Moving beyond traditional large-scale plants, the country is embracing a new generation of reactors tailored for industrial use. BSRs, based on India’s proven 220-MWe Pressurized Heavy Water Reactor design, are compact and designed to be deployed near industrial facilities, providing steady, low-carbon electricity and process heat directly to where it is needed most.

The plan to deploy 40 to 50 of these reactors over the next decade reflects a strategic intent to embed clean nuclear power within the core of India’s industrial infrastructure. Interest from the private sector has grown visibly, with companies eager to secure captive sources of clean power. As former Atomic Energy Commission chairman Anil Kakodkar noted, industries are increasingly looking toward nuclear energy as both an environmental and economic imperative.

Parallel to BSRs, India is ramping up efforts on SMRs—a more flexible and internationally significant technology. These factory-built, scalable units, ranging from 5 to 300 MWe, promise faster deployment and reduced financial risk. The government’s allocation of INR 20,000 crore in the 2024–25 Union Budget for SMR research underscores India’s commitment to positioning itself as a leader in this technology. At the centre of this push is the Bharat Small Modular Reactor, a 200-MWe pressurized water reactor under development at BARC, designed for future-ready industrial applications.

India’s SMR ambitions have also been boosted by a key development in international collaboration. The U.S. Department of Energy’s clearance for Holtec International to transfer unclassified SMR technology to India has opened doors for partnerships with Indian firms like Holtec Asia, Tata Consulting Engineers, and Larsen & Toubro. This marks a pivotal moment in the Indo-U.S. civil nuclear relationship and lays the groundwork for indigenous SMR development and deployment.

A New Business Landscape for Clean Industrial Power

This evolving nuclear roadmap is not only a technological innovation—it is a policy transformation. For decades, the Atomic Energy Act of 1962 restricted private participation in India’s nuclear sector. Today, a shift toward public-private partnership is redefining the energy landscape. Under the upcoming arrangements, private firms can invest in and build nuclear power plants, while operational control remains with the Nuclear Power Corporation of India Limited (NPCIL).

Industry giants like NTPC, Tata Power, Adani, and Larsen & Toubro have expressed interest in nuclear ventures, with NTPC planning a massive USD 62 billion investment to achieve 30 GW of nuclear capacity by 2047. The private sector’s role is no longer peripheral—it is becoming central to India’s nuclear-industrial ecosystem.

What makes nuclear energy particularly attractive for industrial players is its ability to deliver continuous, high-capacity baseload power with virtually no carbon emissions. This reliability is critical for operations that cannot afford the variability of renewables. Moreover, nuclear energy offers a stable long-term hedge against volatile fossil fuel prices and geopolitical energy dependencies.

The Way Ahead: Clean Energy for a Competitive India

BSRs and SMRs offer India a powerful solution to decarbonize heavy industries while ensuring energy reliability. These technologies can supply consistent, low-carbon power and heat—critical for industrial processes that renewables can’t fully support. As India advances toward its net-zero goals and energy independence, nuclear power stands out as a scalable, dependable path forward.

Achieving this vision will require clear financing models, streamlined regulations, public support, and strong global partnerships. With a national target of achieving 100 GW of nuclear capacity by 2047, the coming decades will witness significant momentum in project deployment, research, and investment. For businesses aiming to be part of this transformation, a key milestone will be the 6th edition of the India Nuclear Business Platform (INBP) 2025, scheduled for 14–15 October 2025 in Mumbai. As a premier industry event, INBP 2025 is designed to bring together policymakers, global stakeholders, and business leaders under one roof. Participation will provide strategic networking opportunities, investment insights, and access to collaboration prospects that can position companies at the forefront of India's nuclear expansion.

For Indian industry, the embrace of nuclear energy is no longer merely an environmental choice—it is a competitive necessity. As global markets lean toward decarbonized supply chains and low-carbon production, aligning with nuclear energy is not just about cleaner operations—it is about future-proofing industrial growth in a carbon-conscious world.