MC EXCLUSIVE India to quadruple uranium imports for nuclear energy mission

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India has decided to nearly quadruple uranium imports until 2033 to fuel the nuclear reactors being built as part of the country’s energy security strategy, senior officials privy to the development told Moneycontrol.

“From 2025 to 2033, the Indian government will cumulatively import at least 9,000 MTU (metric tonne unit) uranium to power our new upcoming rectors under the National Nuclear Energy Mission,” said one government official who is not authorised to speak to the media.

Data from the Department of Atomic Energy seen by Moneycontrol showed India imported 2600.299 MTU uranium in the past five years, at a cost of Rs 2,090 crore.

India has a natural uranium reserve of 4,25,570 tonnes. But, the cost of domestically mined uranium is higher due to poor ore quality. Officials said Russia is likely going to be a significant import partner for India as fresh deals could be sealed in the sector, while Australia is also being explored. India has already imported from Uzbekistan, Canada and Kazakhstan under long-term contracts.

In FY21, India imported 2,000.299 MTU from Canada and Kazakhstan. In FY24 and FY25, 350 MTU and 250 MTU were imported respectively from Uzbekistan. There were no imports in FY22 and FY23

Also read: Centre looking to cut turnaround time to set up nuclear power plants by five years.

India’s current nuclear power capacity is 8.88 gigawatt (GW), which is projected to grow to 22.48 GW by 2031-32, and eventually to 100 GW by 2047. To achieve this, India has announced a National Nuclear Energy Mission with a budgetary outlay of Rs 20,000 crore, for which the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 (CLNDA) are to be amended to enable private participation.

But until FY32-FY33, India is going to scale its nuclear capacity through its public sector undertakings (PSUs) such as Nuclear Power Corporation of India Ltd (NPCIL) and NTPC Ltd. The 22.48 GW by FY32 is primarily going to be achieved through the indigenous Pressurized Heavy Water Reactors (PHWRs).

Currently, eight reactors with a total capacity of 6.6 GW are under construction and 10 reactors with a total capacity of 7 GW are at a pre-project activities stage, a second official said.

India primarily imports natural uranium in the form of uranium ore concentrate (UOC), commonly known as yellowcake for its PHWRs. Once imported, the yellowcake is converted to uranium dioxide (UO₂) and fabricated into fuel bundles at nuclear fuel fabrication facilities in the country.

“Our indigenous PHWRs do not need enriched uranium. Natural uranium mostly has U-238 with about 0.7 percent U-235, which is sufficient for PHWRs because we use heavy water as a moderator and coolant, which is efficient at slowing neutrons,” said the official.

Demand for electricity is rising fast, not only for conventional uses such as the light industry or air conditioning, but also in new areas such as electric vehicles, data centres and artificial intelligence. According to the government’s National Electricity Plan, India’s peak power demand could hit 458 GW by 2032 from the peak of 250 GW recorded in FY25.

“Nuclear (energy) is a clean and dispatchable source of electricity and heat that can be deployed at scale with round-the-clock availability. It brings proven energy security benefits to electricity markets as well as reductions in emissions, complementing renewable energy,” the International Energy Agency said in its report - ‘The path to a new era for nuclear energy’ – released earlier this year.

By 2047, India wants 10 percent of its total electricity generation capacity of nearly 1,000 GW to be nuclear based.