Key Highlights
- Bihar will become one of the first six Indian states to host a Small Modular Reactor (SMR) as part of the national rollout.
- The project, approved after a formal request from the state government, aims to address chronic power shortages and support industrial growth.
- The SMR will be cost‑effective, compact, and equipped with advanced safety features suitable for Bihar’s grid.
- A complementary 1,000 MW battery storage facility will enhance grid stability and renewable integration.
- The initiative aligns with the Union Budget 2025‑26’s ₹20,000 crore allocation for the Nuclear Energy Mission and the Power Vision 2035 roadmap.
Detailed Insights
Small Modular Reactors (SMRs) represent a next‑generation nuclear technology that is smaller in footprint, cheaper to build, and incorporates passive safety systems that reduce the risk of accidents. Their modular nature allows for phased deployment, making them ideal for states with limited grid capacity or challenging terrain such as Bihar.
The announcement is part of the Union Budget 2025‑26, which earmarks ₹20,000 crore for the Nuclear Energy Mission. The mission’s strategic objective is to establish at least one nuclear power plant in every state, thereby strengthening energy security, fostering industrial development, and promoting sustainable growth.
Bihar’s persistent power deficits, aging infrastructure, and unreliable supply have made it a prime candidate for the SMR initiative. The new plant is expected to stabilize the state’s grid, accelerate industrialization, and support ambitious economic targets ahead of the upcoming assembly elections.
In tandem with the nuclear project, the central government has sanctioned a 1,000 MW battery storage scheme in Bihar, backed by viability gap funding of ₹18 lakh per MW. This storage system will improve grid resilience, facilitate the integration of intermittent renewables, and build on Prime Minister Narendra Modi’s recent visit to Siwan where a 500 MWh Battery Energy Storage System was inaugurated.
Recent reforms in Bihar’s power sector—such as the installation of 8 million smart meters and reductions in technical and commercial losses—have earned commendation from Union Power Minister Manohar Lal Khattar. As a result, the Centre will supply an additional 500 MW of electricity to the state over the next six months to meet peak summer demand.
The broader Power Vision 2035 roadmap incorporates thermal, solar, wind, storage, and nuclear energy sources, aiming to diversify India’s energy mix and ensure scalability in line with economic growth.
Key Concepts
- Small Modular Reactor (SMR) – A compact nuclear power unit that can be manufactured in factories and assembled on site, offering lower capital costs and enhanced safety.
- Nuclear Energy Mission – A government initiative with a ₹20,000 crore budget aimed at establishing nuclear power plants across all Indian states.
- Viability Gap Funding (VGF) – Financial support provided to bridge the gap between project costs and market rates, ensuring feasibility of large infrastructure projects.
- Power Vision 2035 – A long‑term national strategy that integrates multiple energy sources to achieve a diversified and sustainable power system.
- Battery Energy Storage System (BESS) – A large‑scale battery installation that stores electricity for later use, enhancing grid stability and renewable integration.