Indian Oil Corporation Ltd (IOCL) is actively exploring the nuclear energy space, with plans to assess the feasibility of small modular reactors (SMRs) as well as large-scale nuclear plants, according to company chairman Arvinder Singh Sahney.
Sahney said IOCL is “taking a fresh look at nuclear diversification” in alignment with India’s broader clean energy goals. The move comes as the government intensifies efforts under its Nuclear Energy Mission for Viksit Bharat, which aims to achieve 100 GW of nuclear capacity by 2047, including the deployment of at least five indigenous SMRs by 2033.
Budget Boost and Policy Reform to Unlock Sector Potential
The government has signalled strong policy intent, allocating ₹20,000 crore in the 2025–26 Union Budget toward research and development of SMRs. This significant financial commitment underlines a national push to involve both public and private sector enterprises in India’s nuclear power journey.
In parallel, the government is preparing to introduce amendments to the Atomic Energy Act (1962) and the Civil Liability for Nuclear Damage Act (2010) during the upcoming monsoon session of Parliament.
Opening the Sector to Private and Global Investment
The proposed legislative changes are expected to:
*Allow private and foreign players to participate in nuclear power generation
*Cap supplier liability, addressing a long-standing concern among international companies
*Permit foreign direct investment (FDI) up to 49% under specific conditions
The reforms will support the development of indigenous technology, promote public-private partnerships (PPPs), and attract long-term investment into India’s nuclear ecosystem.
A Strategic Pivot Toward Clean and Indigenous Energy
IOCL’s move into nuclear energy signals a strategic shift toward diversifying its energy mix and supporting national climate goals. According to livemint.com, as India builds a strong nuclear ecosystem, public sector giants like Indian Oil will play a key role in the clean energy transition.
