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Indian Railways in Talks to Set Up Small Nuclear Power Plants for Clean Energy

Written by: Team Angel OneUpdated on: Mar 19, 2025, 3:49 PM IST
Indian Railways is in talks with the DAE and power ministry to set up small nuclear power plants to meet its energy needs and achieve net zero emissions by 2030.
Indian Railways in Talks to Set Up Small Nuclear Power Plants for Clean Energy
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Indian Railways is in discussions with the Department of Atomic Energy (DAE) and the power ministry to explore the feasibility of setting up small nuclear power plants. This is aimed at meeting the railway network’s growing electricity demand while supporting its goal of achieving net zero emissions by 2030.

Land Allocation and Power Supply

As per the initial plan, Indian Railways will provide land for the nuclear plants, while DAE and the power ministry will oversee the establishment and fuel supply. Officials have confirmed that site identification has started, and discussions are underway regarding operational requirements.

Energy Procurement Strategy

Indian Railways plans to procure 3 GW of renewable energy, including hydropower, along with 3 GW of thermal and nuclear power by 2030. The remaining power requirement, especially for traction purposes, will be met through purchases from power distribution companies. The railway network’s total traction power demand is expected to reach 10 GW by the end of the decade.

Budget Allocation 

Funding for the nuclear projects is expected to come from public sector financing institutions, including the Indian Railways Finance Corporation (IRFC). Indian Railways previously explored nuclear energy collaboration in 2016, but financial constraints delayed the plan. The government has recently revived the focus on nuclear power, allocating ₹20,000 crore under the Nuclear Energy Mission to develop at least five Small Modular Reactors (SMRs) by 2033.

Conclusion

In response to a parliamentary query, Railway Minister Ashwini Vaishnaw confirmed that Indian Railways has approached the Nuclear Power Corporation of India Limited (NPCIL) and the power ministry regarding nuclear energy supply. He also noted the railway network’s increasing electricity needs and ongoing efforts to explore alternative power sources.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 19, 2025, 3:49 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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