Indian Oil Corporation Ltd (IOCL), India’s largest oil refiner and marketer, is embarking on a renewed strategy to diversify into nuclear energy, with a particular focus on small modular reactors (SMRs) and large nuclear power plants.

This signals a significant shift in the company’s long-term energy portfolio, aligning with the government’s ambitious targets for nuclear capacity expansion and the broader national agenda of decarbonization and energy security.

Chairman Arvinder Singh Sahney has confirmed that IOCL is revisiting its nuclear power ambitions, a decade after its initial collaboration with the Nuclear Power Corporation of India Ltd (NPCIL).

While IOCL did not participate in NPCIL’s recent bids to set up SMRs for captive use, the company’s large refineries—whose energy consumption matches the output of proposed Bharat Small Reactors (BSRs)—make nuclear a compelling option for reliable, low-carbon power supply. IOCL’s renewed interest is driven by the need to ensure stable energy for its operations and to align with India’s evolving energy transition goals.

Bharat SMR Program And Industry Developments

India is developing the Bharat SMR (BSR) program, with a 200 MWe design and a smaller 55 MWe variant under development. These reactors are intended to provide flexible, scalable, and reliable power, particularly suitable for industrial and remote applications.

While IOCL has not yet disclosed its technology partners, the company is actively exploring options for both SMRs and larger nuclear plants. The broader industry landscape is witnessing heightened activity, with state-run NTPC Ltd recently establishing NTPC Parmanu Urja Nigam Ltd to pursue similar goals. Major private conglomerates—including Reliance Industries, Adani Group, Greenko, Vedanta, HPCL-Mittal Energy, JSW Group, and Hindalco—have also shown interest by responding to NPCIL’s RFP for setting up 220 MWe pressurized heavy water reactors (PHWRs).

Government Policy And Financial Support

The Indian government has set ambitious nuclear power targets: 22 GW by 2032 and 100 GW by 2047, a dramatic increase from the current 8.18 GW installed capacity. To achieve these goals, the Union Budget for FY26 announced a ₹20,000-crore allocation for a Nuclear Energy Mission focused on SMR research and development. The government is also pursuing legislative reforms to facilitate greater private sector participation, including amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. The budget for FY25 further proposed public-private partnerships for SMR development, while interim funding of ₹1 trillion was earmarked for R&D in this sector.

Market Dynamics And Challenges

Nuclear energy in India is recognized for providing high-quality, reliable power with low operational costs. However, its adoption has historically been hindered by concerns over safety, high capital costs, and challenges related to fuel supply.

The government’s recent policy thrust aims to address these issues by fostering innovation, encouraging private investment, and accelerating technology development. The SMR segment, in particular, is seen as a game-changer due to its modularity, shorter construction timelines, and suitability for decentralized deployment in industrial and remote settings.

Conclusion

Indian Oil’s renewed focus on nuclear power, especially SMRs, reflects a broader shift in India’s energy landscape. With robust government backing, evolving regulatory frameworks, and increasing private sector interest, IOCL’s strategy is poised to play a pivotal role in meeting the country’s clean energy and energy security objectives. As the sector matures, successful deployment of SMRs and large reactors will depend on overcoming regulatory, technological, and financial challenges, while leveraging the strengths of both public and private stakeholders.

Based On Hindustan Times Report