Australia, India, and the SMR Question

Why the Uranium Deal Only Runs One Way

Small modular reactors have become a fixture of Australia's energy debate. Along with larger next-generation reactors, SMRs are the specific type of nuclear technology the federal Coalition opposition proposed to replace retiring coal-fired power stations in Australia's future energy mix — with sites including the retiring Callide Power Station in Queensland floated as candidates [1, 2]. It's worth unpacking what an SMR actually is, what Australia's real relationship with nuclear power looks like, and why the idea that Australia could lean on a partner like India to fast-track the technology doesn't survive contact with the facts.

What is a Small Modular Reactor?

• Size: SMRs generate a fraction of the power of a standard 1-gigawatt nuclear station — the technology tops out well under 300 megawatts per unit [2, 3].
• Modular design: Components are built as standardised parts in a factory, then shipped to the site and assembled, rather than constructed piece-by-piece in place [3].
• Safety features: Many designs use passive cooling systems that don't need outside power or pumps to prevent overheating during an emergency [3].

The Australian Context

• Proposed use: The Coalition's plan is to place two initial nuclear projects — SMRs or larger plants — at former coal power station sites, reusing existing powerlines and grid connections [1, 2].
• Current status: The Australian Academy of Technological Sciences and Engineering (ATSE) has found commercial SMR technology remains unproven and that a mature market is unlikely to emerge before the mid-to-late 2040s — well after Australia's coal fleet is expected to retire [3, 4, 5].
• The ban: Australia currently maintains a federal ban on nuclear power generation under the EPBC Act 1999 and the ARPANS Act 1998, though policy debate continues over whether to lift it [6].

Why India Is Pursuing SMRs — And Why That Doesn't Transfer to Australia

India is often cited by nuclear advocates as proof the technology is ready to go. But India's national energy demands, infrastructure, and economic scaling strategy differ completely from Australia's.

1. Drastic cost reductions via domestic manufacturing India isn't importing expensive foreign SMR designs. It's backing an indigenous one — the 220-megawatt Bharat Small Modular Reactor (BSMR-200), developed jointly by the Bhabha Atomic Research Centre (BARC) and the Nuclear Power Corporation of India (NPCIL) [7, 8].

• Under a "Make in India" approach — standardised parts, local supply chains, and repeated builds — L&T, India's leading nuclear equipment manufacturer, says it can build SMRs at least 30% cheaper than global competitors [9].
• India is targeting a fleet of at least five domestic SMRs by 2033, with more than $2 billion committed to the effort, according to Atomic Energy Minister Jitendra Singh [10]. Building a fleet in factories, rather than a single first-of-a-kind plant, changes the underlying economics substantially.

2. A legal shift to attract private billions India's nuclear sector was historically strictly state-owned, which limited funding and slowed expansion.

• That changed with the SHANTI Act: passed by both houses of India's parliament in December 2025, it allows private companies to participate in the nuclear programme for the first time, covering plant operation, power generation, and equipment manufacturing [11, 12].
• Conglomerates including Tata Power and Jindal Nuclear Power have since confirmed plans to build their own SMR capacity, with Jindal alone announcing an 18-gigawatt, multi-decade nuclear investment plan — easing the financial burden on the public treasury [13, 14].

3. Powering industrial growth and AI data centres Unlike Australia, which has a smaller population and a grid well suited (under alot of debate) to distributed solar and wind, India's rapid industrialisation demands massive, uninterrupted baseload power.

• Industrial decarbonisation: SMRs are being targeted to supply high-temperature process heat directly to energy-intensive steel, aluminium, and green hydrogen plants [17].
• The tech boom: India's expanding AI data centre sector needs constant, 24/7 low-carbon electricity, and SMRs are increasingly discussed as a way to supply it without overloading the regional grid [15].

4. Overcoming severe land constraints Solar and wind farms need vast amounts of land — a scarce and politically sensitive commodity in densely populated India. SMRs have a comparatively small footprint, and the retirement of India's coal fleet has been described as a $550 billion opportunity to repurpose those sites for SMRs, reusing the existing grid connections [16].

The Real Australia–India Nuclear Relationship

Australia and India do have a major, highly integrated relationship around nuclear energy — but it runs in the opposite direction to what's being proposed. Australia acts as the fuel supplier; India is the buyer and technology developer. In July 2026, the two countries finalised the administrative arrangement enabling long-term exports of Australian uranium to fuel India's civilian nuclear expansion, under the framework of the 2015 Australia–India Nuclear Cooperation Agreement [19, 20].

1. The relationship is built on "uranium for energy"

• Australia's role: Australia holds close to 28% of the world's known uranium resources but produces zero nuclear power domestically [18].
• India's role: India is targeting 100 gigawatts of nuclear capacity by 2047, up from under 9 gigawatts today, and needs far more uranium than it currently has secured [21, 22].
• The deal: Civil nuclear cooperation has become a pillar of the broader India–Australia Comprehensive Strategic Partnership, sitting alongside defence, critical minerals, technology, and Indo-Pacific cooperation [19, 21]. Australia supplies the raw material; India uses it to work toward its own climate and energy targets.

2. Australia's domestic ban is a stop sign Australia can't legally ask India — or any country — for help building SMRs, because nuclear power generation remains prohibited under the EPBC Act and ARPANS Act. Even if a future Coalition government won office and moved to lift the ban, clearing the legislative and regulatory hurdles required before any foreign government could actually assist would take years [6].

3. India's technology isn't designed for export India's premier design, the BSMR, is a pressurised heavy water reactor engineered specifically to integrate into India's grid, industrial base, and domestic supply chain [8, 23]. Even L&T, while cautiously optimistic about future export opportunities, has said its immediate focus is domestic demand — "there is enough to do in India" [9].

4. Severe regulatory and workforce gaps Even setting aside the legal ban, Australia lacks the basic institutional architecture to receive this kind of assistance. Analysts note Australia has no regulator with jurisdiction over commercial nuclear power generation, no workforce calibrated for a reactor programme, and no domestic reactor fuel or component supply chain — a gap independent reviews put at 15 years or more to close [24, 25].

Where That Leaves the Debate

Australia's actual, functioning role in global nuclear energy is as a stable uranium supplier — not as a customer for reactor technology it has no legal or institutional path to receiving [19]. Against that backdrop, the SMR-as-coal-replacement pitch from the Coalition, Nationals, and One Nation raises an obvious question: what, specifically, is the plan for closing the gap between "we're proposing this" and "none of the pieces required to do it actually exist" — assuming India would even agree to provide the expertise in the first place?

So why even suggest this as a viable solution to Australian energy solutions in the first place. Once again pie in the sky garbage from parties who think the Australian taxation system (ie.. the public and Australian business's who pay their taxes) is an endless feed trough.

#enoughsaid

References

1. Liberal Party of Australia — Australia's Energy Future: https://www.liberal.org.au/2024/06/19/australias-energy-future
2. World Nuclear News — Australian opposition outlines its nuclear plans: https://www.world-nuclear-news.org/articles/australian-opposition-outlines-its-nuclear-plans
3. ATSE — Small Modular Reactors: The technology and Australian context explained: https://www.atse.org.au/what-we-do/strategic-advice/small-modular-reactors-the-technology-and-australian-context-explained/
4. World Nuclear News — Australia should wait for SMR market to mature, report says: https://www.world-nuclear-news.org/Articles/Australia-should-wait-for-SMR-market-to-mature,-re
5. Cosmos Magazine — Nuclear SMRs too immature for Australia now, says top body: https://cosmosmagazine.com/technology/energy/nuclear-smrs-australia-atse/
6. Clayton Utz — A nuclear powered Australia?: https://www.claytonutz.com/insights/2025/march/a-nuclear-powered-australia
7. Business Standard — Barc developing 220 Mw Bharat Small Modular Reactors at ₹5,960 crore: https://www.business-standard.com/industry/news/barc-developing-bharat-small-modular-reactors-at-rs-5960-crore-126031101238_1.html
8. World Nuclear News — EIL to assist in development of Indian SMR design: https://www.world-nuclear-news.org/articles/eil-to-assist-in-development-of-indian-smr-design
9. Chemindigest — India Can Produce Small Modular Reactors Cheaper Cost: https://chemindigest.com/india-can-produce-small-modular-reactors-cheaper-cost/
10. OilPrice.com — India Targets Five Small Modular Reactors by 2033: https://oilprice.com/Latest-Energy-News/World-News/India-Targets-Five-Small-Modular-Reactors-by-2033.html
11. MP-IDSA — SHANTI Act and India's Nuclear Energy Governance Framework: https://idsa.in/publisher/issuebrief/shanti-act-and-indias-nuclear-energy-governance-framework
12. World Nuclear News — India's nuclear-focused SHANTI Bill completes legislative process: https://www.world-nuclear-news.org/articles/indias-shanti-bill-completes-legislative-process
13. World Nuclear News — Indian companies show interest in nuclear: https://www.world-nuclear-news.org/articles/indian-companies-show-interest-in-nuclear
14. Nuclear Business Platform — India's Nuclear Target: Bridging the Gap to 100 GW by 2047: https://www.nuclearbusiness-platform.com/media/insights/india-nuclear-target-bridging-the-gap-to-100-gw-by-2047
15. Down To Earth — Atomic AI: Why India's compute boom is the next climate governance test: https://www.downtoearth.org.in/science-technology/atomic-ai-why-indias-compute-boom-is-the-next-climate-governance-test
16. International Trade Administration (trade.gov) — Market Intelligence: India Energy Small Modular Reactors: https://www.trade.gov/market-intelligence/india-energy-small-modular-reactors
17. ORF Middle East — Big Aspirations for Small Modular Reactors: Understanding India's Strategy on SMRs: https://orfme.org/research/big-aspirations-for-small-modular-reactors-understanding-indias-strategy-on-smrs/
18. World Nuclear Association — Australia's Uranium: https://world-nuclear.org/information-library/country-profiles/countries-a-f/australia
19. The Statesman — India, Australia unlock uranium trade, deepen defence, energy, trade and Indo-Pacific cooperation: 10 Points: https://www.thestatesman.com/world/india-australia-unlock-uranium-trade-deepen-defence-enegy-trade-and-indo-pacific-cooperation-10-points-1503614647.html/amp
20. The Diplomat — India and Australia Are Reshaping What It Means To Be Strategic Partners: https://thediplomat.com/2026/07/india-and-australia-are-reshaping-what-it-means-to-be-strategic-partners/
21. ETV Bharat — Why Uranium From Australia Will Boost India's Nuclear Energy Plans: https://www.etvbharat.com/amp/en/international/uranium-from-australia-will-boost-indias-nuclear-energy-plans-enn26070906806
22. Enerdata — Indian Parliament passes law opening nuclear sector to private sector: https://www.enerdata.net/publications/daily-energy-news/indian-parliament-passes-law-opening-nuclear-sector-private-sector.html
23. Wikipedia — Bharat Small Modular Reactor: https://en.wikipedia.org/wiki/Bharat_Small_Modular_Reactor
24. Australian Institute of International Affairs — Nuclear Submarine Might Settle Australia's Nuclear Energy Argument: https://www.internationalaffairs.org.au/australianoutlook/nuclear-submarine-might-settle-australias-nuclear-energy-argument/
25. Pursuit (University of Melbourne) — 10 reasons why nuclear energy is a bad idea for Australia: https://pursuit.unimelb.edu.au/articles/10-reasons-why-nuclear-energy-is-a-bad-idea-for-australia