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Nuclear Energy Mission and Power Reforms in Budget 2025-26

3 February 20251 min read
NATIONAL AFFAIRSNuclear EnergyMission and PowerReforms in Budget2025-263 February 2025safalsetu.com

Why in the news

The Budget 2025-26 speech announced a nuclear energy push and incentives for electricity distribution reforms.

Key facts

  • Nuclear Energy Mission: R&D of Small Modular Reactors (SMRs), outlay Rs 20,000 crore.
  • SMR goal: at least 5 indigenous SMRs working by 2033.
  • Target: 100 GW nuclear power by 2047 for the energy transition.
  • Private role: the Atomic Energy Act and Civil Liability for Nuclear Damage Act to be amended.
  • States: rewarded for distribution reforms and stronger intra-state transmission; extra borrowing of 0.5% of GSDP if conditions are met.

Significance

  • Strengthens energy security and improves the finances of power utilities.

Exam angle

  • SMR: Small Modular Reactor; 5 by 2033.
  • Extra state borrowing: 0.5% of GSDP.

Test yourself

1. Budget 2025-26 proposed a Nuclear Energy Mission focusing on R&D of which type of reactors?

The mission centres on Small Modular Reactors with Rs 20,000 crore.

2. What nuclear power capacity target by 2047 was highlighted in Union Budget 2025-26?

The Budget speech set 100 GW of nuclear energy by 2047.

3. Under Budget 2025-26 power reforms, states can get additional borrowing of how much of GSDP?

An incremental 0.5% of GSDP is allowed subject to reform conditions.