Adani Power to Ramp up Nuclear Energy Production Under New Atomic Unit

Why It Matters

The entry of a major private utility into India’s nuclear market could accelerate the country’s clean‑energy transition and reshape its power‑generation landscape.

Key Takeaways

• Adani launches nuclear subsidiary with ₹5 lakh seed capital.
• Plans 30 GW nuclear capacity, replacing all thermal plants.
• SHANTI Act enables private participation in Indian nuclear sector.
• Government extends customs duty exemption for nuclear imports to 2035.
• India targets 100 GW nuclear capacity by 2047.

Pulse Analysis

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act marks a watershed moment for the nation’s energy policy. By amending the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act, the legislation dismantles the long‑standing monopoly of the state in nuclear power, inviting private capital and expertise. This regulatory shift aligns with India’s ambitious target of 100 GW of nuclear capacity by 2047, a cornerstone of its strategy to mitigate intermittency challenges associated with renewable sources and bolster long‑term energy security.

Adani Power’s launch of Adani Atomic Energy Limited signals the conglomerate’s aggressive pivot from coal‑heavy thermal generation to low‑carbon nuclear assets. With a modest seed investment of ₹5 lakh, the subsidiary is positioned to tap the extended customs‑duty exemptions on nuclear‑related imports, reducing equipment costs for future reactors. The company’s roadmap to deploy 30 GW of nuclear capacity—potentially through partnerships with experienced international vendors—reflects a broader industry trend of leveraging global technology while meeting domestic clean‑energy commitments. Replacing thermal plants as PPAs expire also offers Adani a pathway to sustain revenue streams amid tightening emissions regulations.

The market implications are profound. Private‑sector entry introduces competitive pressures that could drive down project costs, accelerate timelines, and foster innovation in reactor design and safety protocols. However, challenges remain, including navigating complex licensing procedures, managing public perception of nuclear safety, and securing skilled talent. If Adani and other private players succeed, India could achieve a more diversified energy mix, reduce reliance on imported fossil fuels, and set a precedent for emerging economies seeking to balance growth with climate objectives.

Adani Power to ramp up nuclear energy production under new atomic unit

Published on Feb 12, 2026 at 08:44 AM IST

Adani Power has established Adani Atomic Energy Limited, a wholly‑owned subsidiary, to generate, transmit, and distribute nuclear power.

Adani Power announced Thursday the formation of a new atomic‑energy unit to generate, transmit, and distribute electric power derived from nuclear or atomic energy.

The new unit, officially known as Adani Atomic Energy Limited, is incorporated as a wholly‑owned subsidiary of the company with an initial investment of ₹5 lakh.

This comes two months after the Indian Parliament passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, paving the way for private participation in a sector that has so far remained tightly controlled by the State. The move marked a significant shift in India’s nuclear‑energy policy.

ET had earlier reported that Adani Power is planning to set up 30 GW of nuclear power capacity as the country’s largest private‑sector power producer seeks to replace its entire thermal capacity with nuclear power in the coming years.

“The plan is to replace the entire thermal capacity with nuclear. The company will close down the thermal plants as and when the PPAs (power purchase agreements) are finished,” people aware of the matter told ET earlier, adding the company will consider partnering with an international company for technology know‑how.

In Budget 2026‑27, the Centre proposed to extend the exemption on basic customs duty for imports of goods required for nuclear power projects until 2035, irrespective of the capacity.

“I propose to extend the existing basic customs duty exemption on imports of goods required for Nuclear Power Projects till the year 2035 and expand it for all nuclear plants irrespective of their capacity,” Finance Minister Nirmala Sitharaman said in her Budget speech. The Finance Ministry has allocated ₹24,123.92 crore to the Department of Atomic Energy, with ₹9,966.41 crore earmarked for capital expenditure.

Under the SHANTI Act, the government argued that opening up the sector will help India meet its ambitious clean‑energy goals and strengthen energy security over the coming decades.

The SHANTI Act consolidated and modified India’s existing nuclear legal frameworks—the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act (CLNDA) 2010—to allow participation of the private sector or state governments, a move that was previously not allowed under the Atomic Energy Act, 1962. It also addressed the liability structure under the CLNDA by establishing a graded liability framework, but without diluting victim compensation.

India aims to achieve 100 GW of nuclear power capacity by 2047, with the current installed capacity at 8.7 GW. The latest Economic Survey highlighted that the SHANTI Act is a major step taken by the government to address the concerns of intermittency and energy security in the area of clean power.