Adani Power utilizes nuclear power and establishes new subsidiary amid policy change

Adani Power has announced the creation of a new subsidiary focused on nuclear energy, marking its entry into India’s emerging nuclear power scene as the government opens up the sector to private participation.

In the application made to the stock exchange Adani Power said the newly formed Adani Atomic Energy Limited will generate, transmit and distribute electricity derived from nuclear or atomic energy. The company has been incorporated as a wholly owned subsidiary with an initial investment of ₹5 lakh as per the application.

The move comes as a result of broader political pressure from the center to expand private sector participation in nuclear power following the passage of the 2025 SHANTI Act.

The legislation replaces the decades-old Atomic Energy Act of 1962 and creates a framework for private companies to participate in the nuclear power value chain as India aims for 100 GW of nuclear capacity by 2047.

The law also grants the Atomic Energy Regulatory Board statutory status, which strengthens oversight and introduces a comprehensive licensing system covering the construction, ownership, operation and decommissioning of facilities as well as fuel production, enrichment (within declared limits), and the transport and storage of nuclear materials. Private companies, joint ventures and other approved entities can now apply for licenses – a significant change from the previous state-dominated model.

Part Adani Adani Power Group is currently India’s largest private producer of thermal power. The company has a total generating capacity of 18,110 MW at thermal plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand and Tamil Nadu and a 40 MW solar project in Gujarat.

Policy think tank NITI Aayog has predicted a sharp increase in India’s nuclear energy footprint in its report Scenarios Towards Viksit Bharat and Net Zero. The study estimates that installed nuclear power capacity could increase from about 8.8 GW today to more than 300 GW by 2070, due in part to the introduction of small modular reactors (SMRs), which allow for flexible and distributed deployment.

The SHANTI framework also regulates the import and export of nuclear fuel, specified equipment, nuclear-related equipment, technology and software, while empowering the central government to notify new license areas as the industry develops.