Prime Highlights
- Adani Power announced its entry into the nuclear energy sector by forming a wholly owned subsidiary, signaling a major strategic shift toward clean energy.
- The move follows the passage of the SHANTI Act, which opens India’s nuclear power sector to private participation and creates a supportive policy framework.
Key Facts
- The newly incorporated Adani Atomic Energy Limitedwas set up with an initial investment of Rs 5 lakh and will focus on generating, transmitting, and distributing nuclear power.
- Adani Power plans to build 30 GW of nuclear capacity, while India currently has 7 GW installedand targets 100 GW by 2047.
Background
Adani Power on Thursday announced its entry into the nuclear energy sector with the formation of a new wholly owned subsidiary, Adani Atomic Energy Limited, marking a significant shift in its long-term power strategy.
The company will make the new unit generate, transmit, and distribute electricity from nuclear energy. It has been incorporated with an initial investment of Rs 5 lakh. The development comes shortly after Parliament passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, which allows private companies to participate in the nuclear power sector.
Adani Power, India’s largest private power producer, plans to build 30 gigawatts (GW) of nuclear capacity in the coming years. The company wants to gradually replace all its thermal power with nuclear energy as its current power contracts end. It may also seek international partners for technology support.
The policy environment has turned favourable for nuclear investment. In Budget 2026-27, Finance Minister Nirmala Sitharaman extended the exemption from basic customs duty on imports for nuclear power projects until 2035. The government gave Rs 24,123.92 crore to the Department of Atomic Energy, including nearly Rs 10,000 crore for capital spending.
The SHANTI Act amends earlier laws to permit private and state participation while introducing a graded liability framework without reducing compensation for victims.
India currently has 8.7 GW of installed nuclear capacity and aims to reach 100 GW by 2047 to strengthen its clean energy supply and energy security. Adani Power shares closed 1.17% higher at Rs 150.85 on Wednesday.