Adani Group officially signaled its entry into India’s nuclear power sector by incorporating a new wholly owned subsidiary, Adani Atomic Energy Limited (AAEL).
This move follows a major policy shift in December 2025 with the passage of the SHANTI Bill (Strategic Harnessing of Atomic Energy for National Transition), which opened the traditionally state-guarded nuclear sector to private participation.
Adani Atomic Energy Ltd: At a Glance
The new entity has been established under Adani Power Limited to handle the entire nuclear value chain.
| Feature | Details (as of Feb 12, 2026) |
| Subsidiary Name | Adani Atomic Energy Limited (AAEL) |
| Incorporation Date | February 11, 2026 |
| Parent Company | Adani Power Limited (100% ownership) |
| Authorized Capital | ₹5 Lakh (50,000 shares at ₹10 each) |
| Business Scope | Generation, transmission, and distribution of nuclear power |
Strategic Roadmap: The SMR Pivot
Adani’s nuclear strategy is focused on Small Modular Reactors (SMRs) rather than traditional large-scale plants. This approach offers faster deployment and enhanced safety features.
1. The 1,600 MW Uttar Pradesh Project
The group is reportedly in advanced discussions with the Uttar Pradesh government to build a 1.6 GW nuclear facility.
- Technology: The project plans to use eight 200 MW SMRs based on the indigenous Bharat Small Modular Reactor (BSMR-200) design from the Bhabha Atomic Research Centre (BARC).
- Location: Sites in the Bundelkhand region are being scouted for their proximity to river systems (like the Yamuna or Betwa) required for reactor cooling.
2. Transitioning from Thermal to Nuclear
Adani Power has indicated a long-term plan to gradually replace its existing thermal power capacity with nuclear energy. As current Power Purchase Agreements (PPAs) for coal plants expire, the group intends to pivot those sites toward atomic energy to meet its 2070 Net Zero commitments.
3. Powering the AI & Data Center Boom
For the group’s AdaniConneX data center platform, nuclear energy provides the only viable 24/7 carbon-free baseload power. This allows the conglomerate to hedge against grid volatility and carbon taxes while powering the massive energy demands of artificial intelligence infrastructure.
The Broader Competitive Landscape
The SHANTI Bill, 2025, has unlocked an estimated $214 billion investment opportunity in Indian nuclear energy. Adani is now part of a high-stakes race with other private giants:
- Tata Power: CEO Praveer Sinha recently confirmed the company is evaluating three sites for its own nuclear projects.
- Reliance Industries & JSW Energy: Both groups are reportedly “jockeying for access” to SMR technology and government partnerships.
- NPCIL (State-run): Will likely remain the primary operator under a Public-Private Partnership (PPP) model, where private firms like Adani own the assets while the state manages safety and the fuel cycle.
Policy & Financial Incentives
The Union Budget 2026-27 (presented earlier this month) provided a significant tailwind for the sector:
- Capital Outlay: ₹24,124 crore allocated to the Department of Atomic Energy.
- Customs Relief: Basic Customs Duty on critical nuclear components has been reduced to Nil until 2035.
- PLI Scheme: A proposed ₹20,000-crore Production-Linked Incentive (PLI) scheme for nuclear component manufacturing.
