India’s energy transition is taking a bold new turn.
Indian Oil Corporation (IOC), the nation’s largest state-owned oil refiner, is re-evaluating its long-term energy mix by turning its attention to nuclear energy—specifically, small modular reactors (SMRs) and larger nuclear facilities. This pivot marks a significant diversification move aimed at future-proofing its power-intensive operations and aligning with India’s national clean energy ambitions.
A Strategic Rethink on Nuclear
While IOC previously partnered with the Nuclear Power Corporation of India Ltd (NPCIL) nearly a decade ago, the initiative had since stalled. However, IOC Chairman Arvinder Singh Sahney confirmed the company’s renewed focus on the nuclear sector, stating that the scale of its refinery operations could be well-matched with the output of modular reactors currently under development.
The SMRs under consideration include the 200 MWe Bharat SMR (BSR) and a smaller 55 MWe version—designed to cater to captive industrial loads with compact footprints and higher safety margins. Despite skipping NPCIL’s latest round of RFPs, IOC is expected to re-engage as it formulates a standalone approach to deploying these reactors, possibly independent of previous consortiums.
Aligning with National Priorities
India has ambitious plans to scale nuclear energy capacity from the current 8.7 GW to 22 GW by 2032 and a staggering 100 GW by 2047. To catalyze this, the central government has announced a ₹20,000 crore Nuclear Energy Mission focused on R&D and SMR development.
Additionally, a ₹1 trillion allocation in the interim budget for FY25 underscores the state’s intent to bring in private-sector partners, catalyzing nuclear innovation beyond traditional state-run operators.
Private Sector Signals: The Next Wave
The nuclear narrative in India is rapidly evolving from public monopoly to a collaborative ecosystem. Industrial conglomerates such as Reliance, Adani, JSW, Vedanta, and Hindalco have shown strong intent, responding to NPCIL’s RFPs for deploying pressurized heavy water reactors (PHWRs).
NTPC’s newly formed subsidiary—NTPC Parmanu Urja Nigam Ltd—further highlights the sector’s momentum, with state-owned and private firms both recognizing the value of nuclear power as a stable, low-carbon baseload solution.
IOC’s Nuclear Bet: Strategic Implications
For Indian Oil, nuclear isn’t just an energy hedge—it’s a way to ensure operational autonomy, decarbonize core processes, and reduce dependence on volatile fossil fuel markets. With refineries consuming power on a scale that SMRs can supply efficiently, a self-owned nuclear infrastructure could reduce long-term energy costs and regulatory risks.
Moreover, by not participating in current bids, IOC retains flexibility to pursue bespoke, potentially faster-to-market SMR configurations, either through direct investment or new-age tech partnerships.
