Securing Nuclear Fuel: Canada–India Uranium Deal Strengthens India’s Energy Transition

Why in News?

India and Canada have signed a long-term uranium supply agreement under which the Canadian company Cameco will supply about 22 million pounds (around 10,000 tonnes) of uranium to India between 2027 and 2035.

The deal, valued at about 2.6 billion Canadian dollars, aims to ensure fuel supply for India’s nuclear reactors and support the country’s ambitious plan to expand nuclear energy capacity.

This is India’s second major uranium supply agreement within a month, following a similar arrangement with Kazatomprom of Kazakhstan.

These agreements are crucial for India’s goal of expanding nuclear power capacity significantly by 2047 as part of its clean energy transition.

Background and Context

India’s nuclear energy programme has long faced constraints due to limited domestic uranium availability. While the country possesses uranium deposits, their low ore quality and limited extraction capacity make imports necessary.

Historically, India faced restrictions in nuclear trade due to international sanctions after its nuclear tests in 1974 and 1998. However, global cooperation improved significantly after the Nuclear Suppliers Group granted India a waiver in 2008, enabling civilian nuclear commerce with other countries.

Since then, India has expanded uranium supply partnerships with several countries to ensure stable fuel availability for nuclear power generation.

India’s Dependence on Imported Uranium

Although India has domestic uranium deposits, their uranium concentration ranges between only 0.02% and 0.45%, which is significantly lower than the global average of 1–2%.

In contrast, some mines in Canada contain uranium concentrations as high as 15%, making extraction far more efficient.

Key Implications

• Extracting uranium domestically is costlier due to low ore quality.
• India imports more than 70% of its uranium requirements.
• Domestic production still supports strategic nuclear capabilities and acts as a buffer against supply disruptions.

Rising Demand

India currently consumes about 1,500–2,000 tonnes of uranium annually, with demand estimated at 1,884 tonnes in 2025.

With nuclear expansion plans, annual uranium demand may increase to about 5,400 tonnes in the coming decades.

Even with increased mining, domestic production may meet only about 30% of total demand, making imports essential.

Domestic Uranium Resources and Production

India’s uranium mining operations are primarily located in :

• Jharkhand
• Andhra Pradesh

Currently, seven uranium mines are operational in the country.

Additional uranium deposits have been identified in:

• Meghalaya
• Rajasthan
• Telangana

India’s total uranium resources are estimated at about 4.3 lakh tonnes of uranium ore.

The state-owned Uranium Corporation of India Limited manages several mines, with over 80,000 tonnes of reserves allocated to it.

Nearly 40% of these reserves have already been extracted, prompting ongoing exploration across 15 states.

Expanding and Diversifying India’s Uranium Supply

The new uranium agreement with Cameco aims to diversify India’s nuclear fuel supply sources and strengthen energy security.

Improving India–Canada Nuclear Cooperation

India and Canada have a long history of nuclear cooperation dating back to the 1950s.

One notable collaboration was the CIRUS Reactor, which contributed to India’s early nuclear research.

Canada also assisted in establishing reactors at the Rajasthan Atomic Power Station in the 1960s.

Despite diplomatic tensions in recent years, the uranium supply deal indicates renewed cooperation in the energy sector.

Multiple Global Supply Sources

India currently imports uranium from several countries, including:

• Uzbekistan
• Kazakhstan
• Canada
• Russia

Russia also provides long-term fuel supply for reactors at the Kudankulam Nuclear Power Plant.

India may also expand cooperation with Australia and the United States in the future.

Additionally, Indian companies are exploring overseas uranium mining opportunities to strengthen long-term supply security.

India’s Three-Stage Nuclear Power Programme

India’s nuclear energy strategy is based on a three-stage nuclear programme envisioned by Homi J. Bhabha.

The programme aims to eventually utilise India’s large thorium reserves for energy generation.

Stage 1: Uranium-Based Reactors

The first stage involves Pressurised Heavy Water Reactors (PHWRs) that use uranium fuel and produce plutonium as a by-product.

These reactors form the backbone of India’s current nuclear power capacity.

Stage 2: Fast Breeder Reactors

The second stage utilises plutonium-based fast breeder reactors (FBRs) to generate more fissile material than they consume.

India’s Prototype Fast Breeder Reactor (PFBR) at Kalpakkam Nuclear Complex represents a key step toward this stage.

Stage 3: Thorium-Based Reactors

The final stage aims to deploy reactors that use thorium as the primary fuel source.

India possesses some of the world’s largest thorium reserves, making this stage vital for long-term energy independence.

However, thorium reactor technology is still under development and remains a long-term goal.

Significance of the Uranium Supply Agreements

1. Strengthening Energy Security

Long-term uranium contracts ensure stable fuel supply for nuclear reactors.

2. Supporting Clean Energy Transition

Nuclear energy produces low carbon emissions, helping India achieve climate commitments.

3. Enabling Nuclear Capacity Expansion

Reliable fuel supply supports India’s goal of expanding nuclear capacity from about 9 GW today to nearly 100 GW by 2047.

4. Diversification of Energy Imports

Multiple supply sources reduce dependence on any single country.

5. Boosting Strategic Partnerships

The agreement strengthens India–Canada energy cooperation and enhances diplomatic engagement.