India Must Review Green Finance Frameworks to Unlock Nuclear Investment, Says NITI Aayog's Abhay Karandikar

NITI Aayog Member Abhay Karandikar has emphasised the need for Indian policymakers to review the country's green financing norms to open up investment avenues for nuclear energy. Speaking at the Bharat Electricity 2026 event, the former Secretary of the Department of Science and Technology pointed to international examples set by the World Bank and the Asian Development Bank (ADB).

Karandikar noted that India’s current sovereign green bond, Reserve Bank of India (RBI) green deposit, and Securities and Exchange Board of India (SEBI) green debt securities frameworks exclude nuclear energy. He called for a review of these instruments to enable nuclear energy to access green financing, mirroring global shifts by multilateral institutions.

Alongside financing, the former IIT Kanpur Director highlighted the urgent requirement for specialised nuclear education and skills. He added that NITI Aayog has established a committee to chart a roadmap for capacity building across all levels to support sustainable sectoral growth.

Speaking at the same event, Ghanshyam Prasad, Chairperson of the Central Electricity Authority, noted that India’s energy transition requires a careful balance of resources, long-term planning, and robust policy action. Prasad stated that India commissioned a record 64 GW of new capacity last year and is targeting 70 GW this year to meet rising demand from emerging sectors such as data centres and green hydrogen.

Addressing nuclear goals specifically, Prasad added that accelerating site identification, streamlining regulatory approvals to under 10 years, and building skilled manpower are critical to achieving the 100 GW vision.

India currently operates 25 nuclear reactors with a combined capacity of about 8.8 GW across seven sites. With several projects underway and new reactors planned, the country's capacity is projected to reach nearly 22 GW by 2032. However, scaling up to the 100 GW target by 2047 will require a broad spectrum of advanced technologies, robust supply chains, and innovative financing and deployment models.

Ambassador (Retd.) Rakesh Sood also weighed in on the discussion, stating that India’s nuclear journey stands at a crossroads of ambition and opportunity. Sood, a Distinguished Fellow at the Council for Strategic and Defense Research, noted that policy choices must balance strategic autonomy, resource security, and public engagement while fostering innovation, regulation, and private investment.

"Expanding green finance frameworks to include nuclear energy is a critical step for India's long-term energy security and sustainable growth. As the country targets 100 GW of nuclear capacity by 2047, aligning domestic financial policies with global standards will be essential to attract the necessary private investments and advanced technologies required for this capital-intensive sector." — Dr. Shishir Gupta, Founder & CEO, StartupLanes