Adani in talks for 1.6 GW nuclear project as India opens sector to private capital

The Adani Group is in advanced discussions with the government of Uttar Pradesh to establish a 1.6 gigawatt (GW) nuclear power facility, marking its first foray into a sector recently unlocked for private investment by the central government.

The conglomerate plans to deploy eight Small Modular Reactors (SMRs), each with a capacity of 200 megawatts (MW). This configuration is based on the indigenous Bharat Small Modular Reactor (BSMR-200) design developed by the Bhabha Atomic Research Centre (BARC). While talks are in the scouting phase, the group is reportedly evaluating riverside sites in Bundelkhand for essential reactor cooling.

Leveraging the SHANTI Bill

The move follows the passage of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, which was cleared by the Rajya Sabha on Thursday, December 18. The legislation dismantles the state’s 60-year monopoly on nuclear power by allowing private Indian firms and joint ventures to build and own nuclear plants.

By partnering with the state-run Nuclear Power Corporation of India Ltd. (NPCIL) under a Public-Private Partnership (PPP) model, Adani aims to leverage its infrastructure expertise while NPCIL maintains the rigorous safety and operational standards mandated by the newly empowered Atomic Energy Regulatory Board (AERB).

Powering the AI boom

The strategic shift comes as India faces surging electricity demand from data centers and artificial intelligence infrastructure. “Nuclear offers the only viable 24/7 carbon-free baseload power,” noted a New Delhi-based energy analyst. For the Adani Group, which is scaling its AdaniConneX data center platform, securing dedicated nuclear capacity serves as a hedge against grid volatility and carbon taxes.

Competition heats up

Adani is not alone in this sunrise sector. Rivals including Tata Power, Reliance Industries, and JSW Energy are also evaluating nuclear entry strategies. The Union Budget 2025-26 provided a significant push by allocating ₹20,000 crore (₹200 billion) specifically for the research, development, and commercialization of SMR technology.

Summary

The Adani Group is negotiating with the Uttar Pradesh government to build a 1.6 GW nuclear power plant featuring eight Small Modular Reactors (SMRs). Enabled by the newly passed SHANTI Bill, 2025, this project marks the first major private entry into India’s atomic energy sector. The project will likely follow a PPP model with NPCIL to provide clean, round-the-clock power for industrial hubs and data centers.

Frequently asked questions (FAQs)

Q1: What is the SHANTI Bill? 

Passed in December 2025, it replaces the outdated Atomic Energy Act of 1962, allowing private companies to own and build nuclear facilities in India for the first time.

Q2: What are Small Modular Reactors (SMRs)? 

Unlike traditional large reactors, SMRs are compact units that can be manufactured in factories and transported to sites. They are cheaper, safer, and ideal for providing “captive” power to industrial parks.

Q3: Why did Adani choose Uttar Pradesh? 

Uttar Pradesh is a high-demand state for the group's industrial projects. The proximity to river systems (like the Yamuna or Betwa) is critical for reactor cooling systems.

Q4: Will the government still control safety? 

Yes. The SHANTI Bill grants statutory status to the AERB and keeps “sensitive” fuel-cycle activities (enrichment and waste management) strictly under central government control.

Q5: When will the plant be ready? 

Given that BSMR-200 designs were finalized in 2025, the first demonstration units are expected to take 5 to 7 years to commission following final financial approval.