India's nuclear establishment is making a strategic pivot. The Department of Atomic Energy (DAE) is pushing hard to speed up development of an indigenous Light Water Reactor (LWR). This move aims to tap into global nuclear markets while preserving India's established strength in heavy water reactor technology.
The Global Market Reality
Light Water Reactors dominate the international nuclear landscape. They currently account for over 85% of the world's civil nuclear reactor capacity. Without integrating Indian companies into the global LWR supply chain, breaking into the export market becomes extremely difficult.
Officials within the nuclear establishment recognize this reality. They have flagged the urgent need to expedite fabrication of an Indian LWR. This comes as India opens its nuclear power sector to private participation and eyes a stake in the export market.
Design Work Since 2015
Work on the 900 megawatt electric (MWe) LWR project began back in 2015. Now there is a concerted push to accelerate this initiative. Having an indigenous LWR alongside India's existing fleet of pressurized heavy water reactors (PHWRs) would boost the country's leverage when dealing with foreign vendors.
This leverage could secure better terms for imports. It would also position India more favorably in international nuclear negotiations.
Legal Framework Changes
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 provides important legal backing. Passed during Parliament's winter session, this legislation opens possibilities for more imported LWR-based nuclear projects.
Similar projects include those being set up by Russian partners in Kudankulam. These legal changes are seen as necessary to access the dominant global LWR ecosystem. Meanwhile, India continues to maintain its core strengths in other reactor types.
India's Heavy Water Expertise
India's civil nuclear program possesses deep expertise in manufacturing heavy water reactors. This ranges from 220 MWe PHWRs to newer 700 MWe units. Based on heavy water (deuterium) and natural uranium, PHWRs represent technology that India's nuclear establishment has thoroughly mastered.
However, these reactors are increasingly out of sync with LWRs that now dominate global markets. This creates both challenges and opportunities for India's nuclear strategy.
Why LWRs Dominate Globally
Several factors explain the global dominance of Light Water Reactors:
- Simpler design and engineering compared to heavy water reactors
- Lower construction costs due to economies of scale
- Higher thermal efficiency in operation
- Use of normal water as both coolant and moderator
- Technology overlap with regular thermal power units like coal and gas plants
While LWRs require enriched uranium fuel, access to this material is not a constraint in much of the Western world. Consequently, countries like the United States, Russia, and France use LWRs extensively. These reactors now form the backbone of most international reactor fleets.
PHWR Advantages and Limitations
Pressurized Heavy Water Reactors offer different advantages. They are prized for fuel flexibility and ability to operate on natural uranium. This represents a significant advantage in India's resource-constrained context.
However, this becomes a relative handicap in export markets shaped and dominated by LWR technology. The global nuclear trade has standardized around LWR specifications and requirements.
Balancing Import and Indigenous Capacity
Importing LWRs at higher cost raises two critical issues for India:
- New projects should not come at the expense of indigenous reactor design and PHWR production capacities
- Higher capital expenditure results in higher tariffs that must be absorbed within Indian market conditions
The Jaitapur nuclear project in Maharashtra illustrates these challenges. Setting up reactors there has been in limbo because of high tariff concerns. Earlier liability issues flagged by French atomic power major Areva, along with the company's financial troubles, further complicated matters.
Recent nuclear amendments have addressed some liability concerns. This creates more favorable conditions for moving forward with nuclear projects.
Thorium Resources and Future Potential
India's time-tested strength in PHWR technology combines with renewed focus on fuel manufacturing. Given India's vast thorium resources, this combination appears worth prioritizing. Experts cite immense potential in becoming a major supplier of PHWRs fueled with a mix of thorium and imported low-enriched uranium.
This approach becomes particularly relevant as nuclear energy gains importance across emerging economies. Countries like the United Arab Emirates, Bangladesh, Saudi Arabia, and Turkey have signaled strong intent to embrace nuclear power.
Domestic Program and Export Ambitions
India's domestic nuclear program focuses on eventually harnessing thorium. This design suits India's specific national context characterized by modest uranium resources and vast thorium reserves. Using thorium along with low-enriched uranium in current generation Indian reactors could significantly ease barriers to scaling up nuclear power.
From this perspective, PHWRs appear especially attractive—potentially more so than LWRs for certain applications. India could therefore emerge as a major nuclear supplier of PHWRs fueled with this thorium mix.
Simultaneously, India hopes to position itself as a credible manufacturing destination for nuclear reactors. This includes small modular reactors (SMRs) with capacities between 30 MWe and 300 MWe. The goal is to manufacture these cost-effectively and at scale.
Global Competition in SMR Space
China is working on an ambitious plan to seize global leadership in the SMR sector. Like India, China views SMRs as both a diplomatic outreach tool in the Global South and a sector ripe for disruption. China aims to replicate its success in the electric vehicle industry within the nuclear technology space.
This global competition adds urgency to India's nuclear technology development efforts. The race is on to establish technological leadership and secure market share in the evolving global nuclear landscape.
India's nuclear strategy now clearly involves walking on two legs. One leg steps firmly into the global LWR market while the other maintains balance through continued excellence in heavy water reactor technology. How successfully India manages this dual approach will significantly influence its position in the global nuclear industry for decades to come.
