Page 54 - Policy Economic Report - April 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

MNRE had launched the scheme for New and Novel Uses of Hydrogen Production and Applications last
year, under which Part B of the scheme earmarked Rs. 100 crores for startup funding (pilot projects), with
a maximum grant of Rs. 5 crore per startup.

Following the scheme launch, NISE had issued a call for proposals (CfP) in September 2025. A total of 111
applications were received, out of which 58 were shortlisted for presentation before the Project Appraisal
Committee earlier this year. The results of the presentations will be declared in the coming weeks.

It may be recalled that MNRE had organized a similar startup expo as part of the R&D Conference last
September at Dr. Ambedkar Centre in New Delhi, in which more than 25 startups had participated. This
second event was a successor to the first event.

Prototype Fast Breeder Reactor at Kalpakkam, Tamil Nadu attains First Criticality

In a landmark achievement for India’s nuclear energy programme, the 500 MWe Prototype Fast Breeder
Reactor (PFBR) has successfully attained first criticality (start of controlled fission chain reaction) on 6th
April 2026 at 08:25 PM marking a historic step in providing long-term energy security and advancing
indigenous nuclear technology capabilities.

The criticality was achieved in the presence of Dr Ajit Kumar Mohanty, Secretary, DAE & Chairman, AEC,
Shri Sreekumar. G. Pillai, Director, IGCAR, Shri Allu Ananth, CMD-In-Charge, BHAVINI and Shri K.V. Suresh
Kumar, Former CMD, BHAVINI & Homi Sethna Chair after meeting all the stipulations of the Atomic Energy
Regulatory Board (AERB), which had issued clearance after a rigorous review of safety of the plant
systems.

The technology development & design of PFBR was indigenously done by Indira Gandhi Centre for Atomic
Research (IGCAR), an R&D Centre of the Department of Atomic Energy, and was built & commissioned by
Bharatiya Nabhikiya Vidyut Nigam Ltd (BHAVINI), a PSU under the Department of Atomic Energy.

Fast Breeder Reactors are a cornerstone of India’s long-term nuclear strategy. Unlike conventional
thermal reactors, the PFBR uses Uranium-Plutonium Mixed Oxide (MOX) fuel. The core of PFBR is
surrounded by a blanket of Uranium-238. Fast neutrons convert fertile Uranium-238 into fissile
Plutonium-239, enabling the reactor to produce more fuel than it consumes. The reactor is designed to
eventually use Thorium-232 in the blanket. Through transmutation, Thorium-232 will be converted into
Uranium-233, which will fuel the third stage of India’s nuclear power programme.

This unique capability significantly enhances the utilization of nuclear fuel resources and enables the
country to extract far greater energy from its limited uranium reserves while also preparing for large-scale
use of thorium in the future.

With the achievement of first criticality, India moves closer to realizing the full potential of its three-stage
nuclear power programme. Fast breeder technology forms the vital bridge between the current fleet of
pressurized heavy water reactors and the future deployment of thorium-based reactors, leveraging the
country’s abundant thorium resources for long-term clean energy generation.

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