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SMRs can decarbonise hard-to-abate sectors

Outlook Business

|

November 2025

Anil V Parab, whole-time director, Larsen & Toubro, talks to Sridhar Raman about the importance of small modular reactors (SMRs), securing supply chains and policy measures. Edited excerpts

- Sridhar Raman

SMRs can decarbonise hard-to-abate sectors

Why is India looking at SMRs as a pivotal piece in its clean, firm power build-out plan?

They are vital for three reasons. First, they can decarbonise hard-to-abate sectors such as cement, steel, aluminium and refineries, which account for nearly 34% of India's carbon footprint. Without addressing these, India cannot meet its 2070 net zero and greenhouse gas targets.

Second, hyperscale data centres driving AI and quantum computing need reliable 24x7 clean power with compact footprints. SMRs are among the best options.

Third, in remote regions like the Andaman and Nicobar Islands and certain military bases where grid links are unviable, SMRs or micro-modular reactors can be deployed locally.

How can India secure its nuclear supply chains amid global geopolitical shifts and tightening controls on critical materials?

India has built indigenous end-to-end nuclear capability over six decades. At Hazira, L&T manufactures critical reactor components, including steam generators. In 2011, it added facilities for nuclear-grade steel, forgings and supply piping. These now run at 20% capacity, producing four steam generators a year, but can scale up to 24 annually to meet the 100GW target.

Hazira has a strong ecosystem: proximity to leading institutes like IITs, NIT Surat, VJTI Mumbai and MS University Baroda, and several nuclear plants within 200km.

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