Budget 2025: FM opens up Nuclear power sector to private players and incentivises distribution reforms

Currently, four VVER 1,000-MWe reactors are being built at the KKNPP site.
| Photo Credit: The Hindu

Boosting state’s power distribution and opening the nuclear power sector was announced by Union Finance minister Nirmala Sitharaman in her eighth Budget speech on Saturday (February 1, 2025). She announced incentivisation of distribution reforms to help the financial state of distribution companies. Amendments to nuclear-related Acts will also taken up by the Centre soon, she said. 

“Incentivise electricity distribution reforms and augment intra-state capacity. This will help financial state of distribution companies. An addition of 0.05% of GSDP will be allowed to states contingent on these reforms,” she said. 

Also read:Union Budget 2025 LIVE updates

She also announced the Nuclear Mission for Viksit Bharat in which 100 GW of nuclear power generation by 2047 is ‘essential for power transition efforts’. For active private participation in this the Centre plans to amend the Atomic Energy Act and the Civil liability for the Nuclear damage Act. 

Furthermore, she added that an outlay of ₹20,000 crores will be given for research and development for small modular reactors. Atleast five such indigenously designed reactors will be operationalised by 2033, she said.

Union Budget 2025

Union Finance Minister Nirmala Sitharaman is presenting her eight consecutive budget speech this year. She highlighted that this budget would be aimed to accelerate growth, secure inclusive development, invigorate private investment, uplift household sentiments and enhance power of India’s rising middle class. The main areas of focus among citizens for this budget are the poor, youth, farmers and women. 

“Our economy is the fastest-growing among all major global economies. Our development track record of the past 10 years and structural reforms have drawn global attention. Confidence in India’s capability and potential has only grown in this period”, said Ms. Sitharaman. 

As she began her speech, the Opposition rose in uproar over President Droupadi Murmu’s address on Friday (January 31, 2025). They also walked out, but returned to the House shortly.