India-Australia Civil Nuclear Cooperation

Mains: GS II – International Relations

Why in News?

Recently, India–Australia Civil Nuclear Cooperation Agreement was finalised during the Third India–Australia Annual Summit.

Total number of reactors & capacity– India currently operates 24 nuclear power reactors across seven sites with a total installed capacity of 8.78 Gigawatt (GW).
Current projects – Ten more reactor units with a combined capacity of 8000 Megawatt (MW) are under construction.
Pre-project activities for 10 additional reactors are also underway.
Reactor types – The reactors are Pressurised Heavy Water Reactors (PHWRs), Boiling Water Reactors (BWRs) and Light Water Reactors (LWRs).
India mainly uses natural uranium fuel to run the Pressurised Heavy Water Reactors (PHWRs) to produce nuclear energy and Plutonium is produced as a bye product.

Nuclear Reactor

Thorium reserves – India's long-term strategy is centred on utilising its abundant thorium reserves for future nuclear fuel, found mainly in the coastal sands of Kerala, Tamil Nadu, Andhra Pradesh, and Odisha.
But naturally occurring Thorium has to be first made fissile by neutron absorption inside a nuclear reactor.
FBRs – India is advancing Fast Breeder Reactors (FBRs) to utilise plutonium and support the transition to thorium-based reactors.
SMRs – The Government has allocated ₹20,000 crore in the Union Budget 2025–26, for the research, design, development, and deployment of indigenous Small Modular Reactors (SMRs).
SMRs typically generate up to 300 MWe of electricity. Their compact, modular design enables factory-based manufacturing, faster construction, improved quality and phased deployment.
The Government aims to operationalise at least five indigenous SMRs by 2033.
With continued investments in advanced reactor technologies and domestic innovation, nuclear energy is emerging as a reliable pillar of India's future energy mix.

Prototype Fast Breeder Reactor (PFBR)

India's indigenously built 500 MWe Prototype Fast Breeder Reactor (PFBR) at Kalpakkam attained first criticality on 6 April 2026, marking the start of India’s second stage of its three-stage nuclear power programme.
Unlike conventional reactors, the PFBR uses plutonium recovered from spent fuel of Pressurised Heavy Water Reactors (PHWRs) and is designed to produce more nuclear fuel than it consumes.
It will eventually breed Uranium-233 from thorium, unlocking India's vast thorium reserves for future-ready clean energy generation.
Developed indigenously by the Department of Atomic Energy, the reactor is a major milestone, strengthening India's reliable fuel supply, reducing dependence on imported uranium, and advancing the country's net-zero ambition by 2070.

Energy Security – The Arrangement assures a long-term supply of fuel for an expanding fleet of reactors.

Australia possesses the largest uranium resources globally, accounting for more than one-third of the global total.

Nuclear power provides dependable baseload generation, available at all hours, which lends stability to the grid and complements the variable output of solar and wind power.
Clean Energy – Nuclear power is a low-carbon source that adds firm capacity to India's non-fossil energy mix.
It can progressively meet demand currently served by coal while supporting the growing energy needs of industry, data centres and the digital economy.
Nationally Determined Contributions (NDCs) and net-zero – India has committed to achieving net-zero emissions by 2070 and has progressively raised its climate targets, including a greater share of non-fossil capacity.
A secure supply of nuclear fuel supports this transition by enabling the expansion of clean and reliable generation.
India as a responsible nuclear power – Australia's decision to supply uranium reflects confidence in India's strong non-proliferation record and responsible use of nuclear technology.
The Arrangement further reinforce the India–Australia Comprehensive Strategic Partnership by adding a robust energy pillar to cooperation spanning trade, defence, critical minerals, technology and the Indo-Pacific.

India has signed Inter Governmental Agreement (IGA) with 18 countries on Civil Nuclear Co-operation for peaceful purposes.

Supports India's nuclear ambitions – It complements the Nuclear Energy Mission, which targets 100 GW of nuclear power capacity by 2047.
It also reinforces the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, enacted in December 2025.
The Act enables participation by Indian private companies and joint ventures in building, owning and operating nuclear power plants.
Assured long-term uranium supplies provide greater confidence to developers, investors and industry, supporting timely project implementation.

The Administrative Arrangement is a practical measure with far-reaching benefits.
For the economy, it helps to secure clean and firm power for growth, manufacturing and digital infrastructure.
For energy security, it diversifies India’s fuel supply and strengthens the foundation of the power system.
This momentum is already evident, with milestones such as the PFBR at Kalpakkam attaining first criticality.
For the bilateral partnership, energy now joins a broad and deepening relationship.
Anchored in shared interests and mutual trust, India and Australia are well placed to widen their cooperation in the years ahead, with a dependable supply of uranium lending India’s clean energy endeavor a firmer foundation.

Reference

PIB| India – Australia Nuclear Arrangments