The New Supply Agreements

India Signs Uranium Supply Deals with Canada and Kazakhstan Amid 100 GW Nuclear Push

New Delhi has inked supply agreements with Canada and Kazakhstan to secure uranium for its expanding civil‑nuclear programme. The deals arrive as the government targets 100 gigawatt‑electric (GWe) of nuclear capacity by 2047, while domestic ore extraction remains costly and low‑grade. The agreements signal a strategic shift toward diversifying import sources amid rising global uranium prices.

The Ministry of Power’s recent committee report notes that the Canada and Kazakhstan contracts will each deliver up to 1,000 tonnes of uranium oxide per year for the next decade. Both agreements were signed in early 2026 and are expected to commence shipments by mid‑2027.

• ▸Canada’s deal covers uranium enriched to 3.5 % U‑235, suitable for light‑water reactors (LWRs).
• ▸Kazakhstan’s supply is in the form of natural uranium concentrate, feeding India’s pressurised heavy‑water reactors (PHWRs).
• ▸The contracts include price‑escalation clauses linked to the spot market, shielding India from short‑term volatility.

These arrangements complement existing imports from Australia and Uzbekistan, expanding the portfolio of reliable suppliers.

Domestic Uranium Mining – Cost and Grade Challenge

India’s own uranium output, managed by Uranium Corporation of India Ltd, is hampered by ore grades averaging 0.1 % U, far below the 0.5‑1 % typical of major global mines. Consequently, the Ministry of Power estimates that domestic mining and milling cost three to four times more than foreign procurement.

• ▸The Jaduguda and Turamdih mines in Jharkhand, and the Tummalapalle project in Andhra Pradesh, together hold about 4.3 lakh tonnes of reserves across 47 deposits.
• ▸Processing these low‑grade ores requires additional energy and water, inflating the unit cost per kilogram of uranium oxide.
• ▸The committee warns that a sustained rise in international uranium prices could render domestic production economically untenable.

India’s Nuclear Expansion Blueprint

The 100 GWe target hinges on both existing pressurised heavy‑water reactors and the planned deployment of light‑water reactors (LWRs) at sites such as Kudankulam and Tarapur. The expansion is guided by the India's Three-Stage Nuclear Power Programme, which envisions a transition from natural uranium to plutonium‑based fast reactors and ultimately to a thorium‑fuelled breeder.

• ▸The Nuclear Power Corporation of India Ltd (NPCIL) is slated to commission three new LWRs by 2032, each with a capacity of 1,200 MW.
• ▸Under the Civil Liability for Nuclear Damage Act 2010, liability for any nuclear incident rests with the operator, but the government retains a guarantee for damages up to ₹500 crore.
• ▸The Atomic Energy Regulatory Board (AERB) has approved the safety design of the upcoming reactors, aligning them with International Atomic Energy Agency (IAEA) standards.

These policy instruments aim to balance rapid capacity growth with stringent safety oversight.

Thorium Programme – Strategic Rationale

India’s abundant thorium reserves—estimated at 25 times the global uranium stock—have long been touted as a long‑term energy solution. Thorium, when bred into fissile uranium‑233, promises higher energy yield per unit mass and reduced long‑lived waste.

• ▸The Indian government’s thorium research is coordinated by the Department of Atomic Energy, which operates the Advanced Heavy Water Reactor (AHWR) pilot project.
• ▸Thorium’s higher melting point and lower radiotoxicity make it attractive for future fast‑breeder reactors, potentially reducing the need for imported uranium.
• ▸However, commercial thorium utilisation requires a mature re‑processing infrastructure, which remains under development.

The dual strategy of importing uranium while nurturing thorium technology reflects a hedged approach to energy security.

Geopolitical and Economic Implications

Securing uranium from Canada and Kazakhstan diversifies India’s supply chain, reducing reliance on any single supplier and mitigating geopolitical risk. At the same time, the cost differential between imported and domestically produced uranium underscores the economic incentive to accelerate the thorium programme.

• ▸Global uranium demand is projected to rise by 30 % over the next decade, driven by renewed interest in nuclear power as a low‑carbon source.
• ▸India’s import contracts position it among the top ten uranium‑importing nations, enhancing its bargaining power in international forums such as the IAEA.
• ▸The expansion of nuclear capacity is expected to contribute roughly 5 % of the nation’s projected 2030 electricity generation, supporting decarbonisation targets while alleviating pressure on coal‑dependent grids.

By weaving together foreign procurement, domestic mining reforms, and long‑term thorium research, India is charting a multifaceted path toward a resilient nuclear energy future.