News Stocks 5 Nuclear Energy Stocks to Benefit from Government's ₹20,000 Crore Push for Small Modular Reactors5 Nuclear Energy Stocks to Benefit from Government's ₹20,000 Crore Push for Small Modular Reactors
India has announced a ₹20,000 crore Nuclear Energy Mission targeting 100 GW nuclear capacity by 2047, with focus on Small Modular Reactors (SMRs). Current capacity of 8,180 MW will expand to 22,480 MW by 2031-32. Five companies are positioned to benefit: BHEL (equipment supplier), L&T (EPC services), NTPC (power generation), MTAR Technologies (precision components), and Walchandnagar Industries (critical nuclear components). The initiative supports India's clean energy transition and indigenous nuclear technology development.
*this image is generated using AI for illustrative purposes only.
India has unveiled an ambitious nuclear energy expansion plan through the Union Budget 2025-26, emphasizing nuclear power as a cornerstone of clean and reliable energy infrastructure. The government aims to achieve at least 100 GW of nuclear power capacity by 2047, positioning nuclear energy as a key element in the "Viksit Bharat" vision while reducing dependency on fossil fuels and supporting India's rapidly increasing energy requirements.
Current Nuclear Landscape and Expansion Plans
India's current nuclear generation capacity stands at approximately 8,180 MW, with substantial expansion plans targeting 22,480 MW by 2031-32. The government has established the Nuclear Energy Mission for Viksit Bharat, focusing particularly on Small Modular Reactors (SMRs) development. These smaller, safer, and more adaptable reactors offer construction advantages over conventional reactors and provide flexible solutions for areas where large centralized power plants are not feasible.
| Parameter: | Details |
|---|---|
| Current Capacity: | 8,180 MW |
| Target by 2031-32: | 22,480 MW |
| Long-term Target (2047): | 100 GW |
| SMR Budget Allocation: | ₹20,000 crore |
| Indigenous SMRs Target: | 5 reactors by 2033 |
Small Modular Reactors Initiative
The government has allocated ₹20,000 crore for research and development, targeting the construction of at least five indigenous SMRs by 2033. SMRs offer capacities ranging from below 30 MWe to over 300 MWe, providing a flexible, scalable, and cost-effective alternative to large nuclear reactors. This initiative supports India's energy transition toward net-zero emissions while strengthening energy security.
Key Beneficiary Stocks
Heavy Engineering and Equipment Suppliers
Bharat Heavy Electricals Ltd (BHEL) serves as a core beneficiary, supplying critical equipment including steam generators and turbine-generator sets to NPCIL. With a market capitalization of ₹84,440 crore, BHEL shares closed at ₹242.50, down from the previous close of ₹251.55. The company's long-term order visibility strengthens as nuclear capacity scales toward the 100 GW target.
Larsen & Toubro Ltd (L&T) plays a crucial EPC and heavy engineering role, covering civil works, fabrication, and cooling systems for nuclear projects. With a market capitalization of ₹5,15,161 crore, L&T shares closed at ₹3,745.05, down from ₹3,794.30. The company's execution capabilities position it well for future nuclear contracts as private participation and SMR development gain policy support.
Power Generation and Specialized Components
NTPC Ltd is transitioning from coal to clean baseload power through nuclear generation via subsidiaries and joint ventures. With a market capitalization of ₹3,26,583 crore, NTPC shares closed at ₹336.80, down from ₹342.50. While nuclear assets require significant capital investment with long gestation periods, the government's nuclear push supports the company's long-term clean energy strategy.
| Company: | Market Cap (₹ Cr) | Share Price (₹) | Previous Close (₹) |
|---|---|---|---|
| BHEL: | 84,440 | 242.50 | 251.55 |
| L&T: | 5,15,161 | 3,745.05 | 3,794.30 |
| NTPC: | 3,26,583 | 336.80 | 342.50 |
| MTAR Technologies: | 7,346 | 2,388.40 | 2,455.65 |
| Walchandnagar Industries: | 1,033 | 152.35 | 157.15 |
MTAR Technologies Ltd specializes in high-precision nuclear reactor components, positioning it to benefit from SMR and reactor expansion. With a market capitalization of ₹7,346 crore, shares closed at ₹2,388.40, down from ₹2,455.65. The indigenous manufacturing focus of the nuclear mission supports the company's order pipeline.
Walchandnagar Industries Ltd supplies critical Class-I nuclear components including calandrias and heat exchangers to NPCIL and BARC. With a market capitalization of ₹1,033 crore, shares closed at ₹152.35, down from ₹157.15. As new reactors and SMRs are ordered, demand for these specialized components is expected to increase.
Strategic Implications
The ₹20,000 crore Nuclear Energy Mission represents a significant commitment to indigenous nuclear technology development. SMRs offer advantages in terms of safety, flexibility, and deployment speed compared to conventional large reactors. This initiative aligns with India's broader clean energy transition goals and provides opportunities for domestic manufacturers and engineering companies to participate in the nuclear supply chain expansion.
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