India Plans A Fleet of Indigenous Nuclear Reactors Ahead of Budget 2026

India is preparing to advance its nuclear expansion strategy as Budget 2026 approaches, with government officials indicating that a major procurement round is under discussion. Bloomberg reports that New Delhi plans to order a third fleet of locally designed reactors to support domestic capacity growth.

The move aligns with the government’s broader industrial priorities, requiring fiscal support and sector‑specific incentives. Early deliberations suggest the proposal may be positioned alongside upcoming Budget measures due on February 1, 2026.

Proposed Bulk Order for Indigenous PHWRs

Government officials cited in industry reports stated that India is considering bids for as many as 10 pressurised heavy water reactors (PHWRs) of 700 MW each. This would mark the third bulk order for the country’s indigenous PHWR design, continuing a long‑standing strategy of standardisation.

Standardising reactor orders allows the government to negotiate more efficient pricing through economies of scale. It also helps reduce construction risks across multiple sites by deploying a proven reactor template.

Policy Context and Budget Linkages

Reports indicate that the government may pair the bulk order with industrial incentives aimed at strengthening domestic nuclear manufacturing. These measures could include support for supply‑chain localisation and domestic production of reactor components.

Policy watchers believe the timing is connected to the Union Budget for 2026–27, scheduled for February 1. Fiscal measures announced during the Budget may help accelerate project timelines and capital mobilisation for upcoming nuclear developments.

India’s Long‑Term Nuclear Expansion Strategy

India’s nuclear strategy has shifted significantly following the passage of the SHANTI Act in December, which opened the atomic sector to private companies. Government plans aim to expand nuclear capacity to 100 gigawatts by 2047, compared with the current 8.8 GW.

Estimates place the total investment required at about $211 billion to meet the targeted growth trajectory. This marks a substantial scale‑up supported by both policy reforms and expanding industrial participation.

Read More: Maharashtra Advances Plans for India’s First Thorium‑Based Power Plants.

Conclusion

India’s preparation for a third bulk order of 700‑MW PHWRs highlights its commitment to scaling domestic nuclear capacity. The initiative aligns with broader policy reforms and rising industrial demand for clean baseload power.

With Budget 2026 scheduled shortly, fiscal support measures may accompany this procurement plan. The decision marks a significant step in India’s long‑term goal of expanding nuclear capacity to meet national energy security and industrial growth requirements.

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