BARC’s 300-MW BSMR-300 could bring private capital into India’s nuclear sector, with NTPC, Reliance, Adani and L&T in commercial talks.
NEW DELHI: The Bhabha Atomic Research Centre (BARC) has begun structured commercial discussions with NTPC Limited, Reliance Industries, Adani Group and Larsen & Toubro to deploy its indigenously designed 300-megawatt electric small modular reactor, the Bharat Small Modular Reactor (BSMR-300), according to reports from September 16, 2026. The talks mark the first serious attempt to bring private capital into a sector that has remained a state monopoly since the Atomic Energy Act of 1962.
The proposed structure centres on an industry-backed Special Purpose Vehicle that would hold intellectual property rights and operational assets for commercialised reactor units. Under this model, private energy majors and public sector generators would take equity stakes and arrange project financing, while BARC and the Nuclear Power Corporation of India Limited (NPCIL) retain custody of core reactor physics, safety design and regulatory compliance. Larsen & Toubro is positioned as the principal heavy manufacturing partner, using domestic forging capacity to build reactor pressure vessels and containment structures.
A Design Built for Grid Power and Industrial Heat
The BSMR-300, whose Detailed Project Report was released on August 14, 2026 by BARC Director Vivek Bhasin and NPCIL Chairman V Rajesh, is a wholly indigenous Generation III+ Pressurised Water Reactor. It targets a commercial capital expenditure benchmark of ₹30 crore per megawatt, translating to roughly ₹9,000 crore per 300 MWe unit. The design emphasises passive safety systems capable of maintaining core cooling without external power, and factory-built modularity that could compress construction timelines from the historical 8 to 10 years down to 5 to 6 years.
The BSMR-300 sits within a wider Department of Atomic Energy portfolio developed under the ₹20,000 crore Nuclear Energy Mission. This includes the smaller BSMR-200 aimed at captive industrial power, the SMR-55 already approved for deployment at Tarapur, and a high-temperature gas cooled reactor sited at Visakhapatnam for green hydrogen production. Collectively, these designs support India’s stated ambition of scaling nuclear capacity from its current 8.7 GW to 100 GWe by 2047, a target that cannot realistically be met through large 700 MWe and 1,000 MWe reactors alone.
The Legislative Shift That Made This Possible
None of this commercial engagement would be legally possible without the SHANTI Act, 2025, notified on December 21 last year. The Act repealed both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, replacing them with a framework that permits non-state entities to build, own and operate nuclear facilities, while allowing up to 49% foreign direct investment through joint ventures. Crucially, the Act introduced tiered operator liability caps rather than the uncapped exposure that had long deterred private and foreign vendors. For the BSMR-300 class of reactors, liability per incident is capped at ₹300 crore, with overall liability capped near ₹3,300 crore and the Central Government underwriting residual damage through the Nuclear Liability Fund.
However, the state has not surrendered everything. Strategic functions including uranium enrichment, heavy water production and spent fuel reprocessing remain exclusively with the Central Government, drawing a clear line between commercial generation and sovereign control.
Why Industry Wants In
The corporate interest is not incidental. Grid data shows solar power contributing up to 66.6 GW during peak daytime hours against national demand of 227 GW, yet accounting for barely 10% of total daily energy consumed, with coal plants still generating up to 176 GW during non-solar hours. For energy-intensive industries seeking round-the-clock decarbonised power, small modular reactors offer a firm alternative that renewables alone cannot yet provide.
Corporate positioning has moved quickly since the SHANTI Act’s passage. Adani Power incorporated two dedicated nuclear subsidiaries, Rawatbhata-Raj Atomic Energy and Coastal-Maha Atomic Energy, in May 2026, and has signalled interest in eight BSMR-200 units as part of a 10 GW nuclear roadmap by 2035. Tata Power has targeted a 2028 construction start, while Reliance is exploring SPV participation to power its industrial hubs and green hydrogen ventures. NTPC, meanwhile, is holding parallel technical talks with international vendors including EDF, Rosatom and Westinghouse.
What Remains Unresolved
Despite the momentum, the commercial pathway is far from settled. No binding joint venture agreements, equity tables or site allocations exist yet, and the Department of Atomic Energy is still expected to issue a formal Request for Proposal to structure bidding and equity terms. Cost economics also pose a genuine hurdle: early demonstration units such as the SMR-55 carry First-of-a-Kind costs of ₹80 to 90 crore per MW, nearly three times the BSMR-300’s commercial target, and bridging that gap will likely require viability gap funding or production-linked incentives.
Separately, the Supreme Court issued notices in February 2026 in response to a petition challenging the SHANTI Act’s liability caps as a violation of the constitutional right to life under Article 21, introducing an element of legal uncertainty that could shape investor confidence going forward.
Whether India’s nuclear ambitions translate into commissioned reactors will depend on how quickly the DAE’s RFP materialises, how the Supreme Court rules on the liability question, and whether the promised joint ventures move from preliminary talks to signed paper.
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