Adani Power has announced the creation of Adani Atomic Energy Limited, a wholly owned subsidiary dedicated to generating, transmitting, and distributing electricity derived from nuclear energy, marking one of the most consequential private-sector moves in India’s evolving energy landscape. The new entity has been incorporated with an initial investment of Rs 5 lakh and reflects the conglomerate’s long-term ambition to transition away from fossil fuel-based generation.
The development comes just two months after India’s Parliament passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, a landmark reform that for the first time allows private participation in a sector historically dominated by the state. The legislation consolidates and amends provisions of the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, introducing a graded liability framework while maintaining compensation safeguards for victims in case of accidents.
Industry sources indicate that Adani Power is planning to build as much as 30 gigawatts of nuclear capacity, a scale that could position it among the largest private nuclear energy developers globally. The company intends to gradually retire its thermal power plants as existing power purchase agreements expire, effectively replacing its entire fossil fuel-based portfolio with nuclear generation over the coming years. It is also expected to explore partnerships with international firms to secure advanced reactor technology and technical expertise.
The move aligns with the Indian government’s broader strategy to accelerate clean energy deployment while ensuring grid stability and long-term energy security. Unlike renewable sources such as solar and wind, nuclear power provides continuous baseload electricity, addressing concerns about intermittency highlighted in the country’s Economic Survey.
Policy support for nuclear expansion has intensified. In the Union Budget for 2026–27, Finance Minister Nirmala Sitharaman proposed extending the exemption on basic customs duty for imports required for nuclear power projects until 2035, regardless of plant capacity. The government has allocated Rs 24,123.92 crore to the Department of Atomic Energy, including Rs 9,966.41 crore earmarked for capital expenditure, signaling sustained public investment alongside the anticipated private influx.
India has set an ambitious target of achieving 100 gigawatts of nuclear power capacity by 2047, a dramatic increase from the current installed capacity of about 8.7 gigawatts. The opening of the sector through the SHANTI framework is being viewed as a pivotal policy shift designed to attract capital, accelerate reactor deployment, and reduce reliance on coal as the country balances rapid economic growth with climate commitments.
Adani Power’s shares closed at Rs 150.85 on Wednesday, up Rs 1.75 or 1.17 percent, reflecting modest market response even as analysts assess the long-term implications of what could become one of the largest energy transitions undertaken by a private company in India.
