As India plans to expand its nuclear power capacity to meet rising energy demand, the strategically important Andaman and Nicobar Islands could get a piece of the pie.

According to media reports, scientists from the Bhabha Atomic Research Centre (BARC) are visiting the archipelago this week to identify potential sites for setting up Small Modular Reactors (SMRs), which are a key component of India’s nuclear energy mission.

The BARC team met Lieutenant Governor Admiral D.K. Joshi and briefed him on the features and potential applications of SMRs, the Times of India reported on Monday.

The proposed nuclear project assumes significance against the backdrop of the Great Nicobar Project, a strategically important infrastructure initiative that is expected to significantly increase electricity demand in the islands.

The project involves an International Container Transshipment Terminal, a greenfield international airport and a new township spread across 16,610 hectares.

Currently, diesel generator sets are the primary source of electricity in the Andaman and Nicobar Islands. The government had already proposed a power plant as part of the Great Nicobar Project to provide reliable and uninterrupted electricity to the region.

India’s SMR push

India launched its Nuclear Energy Mission as part of the Union Budget 2025-26, with a focus on the research and development of Small Modular Reactors. The government has allocated ₹20,000 crore for the initiative and aims to develop at least five indigenously designed and operational SMRs by 2033.

According to the International Atomic Energy Agency (IAEA), SMRs are advanced nuclear reactors with a power capacity of up to 300 MW(e) per unit—roughly one-third of the generating capacity of conventional nuclear power reactors.

The government’s plan to explore SMRs for the Andaman and Nicobar Islands is strategically significant, as these reactors can be deployed at locations that may not be suitable for large conventional nuclear power plants.

A major advantage of SMRs is their modular design, which allows systems and components to be factory-assembled and transported as units to a site for installation. In areas with limited transmission infrastructure and grid capacity, SMRs can potentially be integrated into existing grids or deployed in remote, off-grid locations.

Great Nicobar project

The government aims to transform Great Nicobar into a strategic maritime and economic hub by leveraging its proximity to major East-West shipping routes and reducing India’s dependence on foreign transshipment ports. It also aims to strengthen national security and defence infrastructure.

Accoridng to an official statement, the proposed International Container Transshipment Terminal is aimed at addressing the lack of deep-water berths at Indian ports capable of handling large container vessels. At present, a significant portion of India-bound cargo is transshipped through ports such as Colombo and Singapore. This results in the loss of potential revenue for India, while countries including Myanmar, China and Sri Lanka are developing deep-water facilities to capture a larger share of regional maritime trade.

The project also includes a proposed international airport, given the archipelago’s proximity to international tourist destinations such as Phuket, Langkawi and other Southeast Asian locations.

The government claimed that the planned township was intended to cater to the residential, commercial and institutional requirements expected to emerge from the port-led development of Great Nicobar.

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