Small Modular Reactors Eyed for India's Steel Decarbonization

Small modular reactors (SMRs), which are being developed under India's Nuclear Energy Mission, show promise for the steel sector. These SMRs are expected to provide reliable, round-the-clock, low-carbon electricity, complementing renewable energy sources and supporting the steel industry's decarbonization efforts as the technologies mature and are deployed.

India's steel industry is expanding, with domestic demand driven by infrastructure spending. The country's crude steel output increased by 10% in 2025 and 6% in January-August 2026, while global output declined. India's share of world steel production has reached approximately 9%, up from 5.2% in 2014. Finished steel consumption in India more than doubled over a decade, reaching 164 million tonnes in FY26, with consumption exceeding production for two consecutive years.

The growth in steel production requires advancements in raw-material security, specialized manufacturing, technological sophistication, and environmental performance. Expanding scrap-based steelmaking and utilizing renewable electricity are also practical priorities for the sector.

Cabinet Approval Sought for Power System Development Fund Extension

The Power System Development Fund (PSDF) finances projects that support the reliability, security, and stability of the electricity grid. It primarily supports investments in power-system operations that may not be commercially viable for utilities. The union budget for FY27 allocated approximately ₹1,103 crore to the PSDF.

The Cabinet approved the PSDF for the 15th finance commission cycle (FY22-26) in July 2023, with an allocation of ₹11,000 crore. Regional power committees, electricity generation companies, transmission licensees, distribution licensees, load dispatch centers, and public sector undertakings are required to provide details of projects and schemes for PSDF funding.

Eligible funding categories include transmission systems of strategic importance, reactive energy generators, standard and special protection schemes, pilot and demonstration projects, and the renovation and modernization of transmission and distribution systems. As renewable energy capacity increases, the grid requires additional voltage support, storage, and protection systems to manage variable generation.

Hyundai E&C Develops and Tests Used Nuclear Fuel Repository Excavation Equipment

Hyundai E&C has developed and tested specialized excavation equipment for used nuclear fuel disposal facilities. This initiative is part of a government-funded research and development project focused on used nuclear fuel management, led by the Korea Radioactive Waste Agency (KORAD). Hyundai E&C is the sole construction company involved in this project.

The HMG Construction Technology Research Institute, an integrated R&D organization of Hyundai E&C and Hyundai Engineering, is developing core technologies for disposal facility construction. These technologies include excavation equipment and methods, as well as rock monitoring. The dedicated deposition hole excavation equipment developed by Hyundai E&C measures 1.75 meters in diameter and 5.7 meters in length. It is designed to meet the specifications and construction conditions of the Korea Advanced Disposal System (KORADIS), a disposal system for used nuclear fuel tailored to Korea's geological environment and technical requirements.

A key feature of the equipment is its foldable cutterhead, which allows for the repeated excavation of multiple deposition holes within a disposal facility. After excavation, the cutterhead can be folded for safe retrieval and reuse. Hyundai E&C verified the equipment's performance and constructability by conducting full-scale deposition hole excavation in rock within an underground research tunnel. During the demonstration, artificial intelligence (AI) was used to analyze excavation data in real time, optimizing the excavation process based on ground conditions and equipment performance. Post-excavation, LiDAR-based digital mapping was employed to verify construction quality and assess the suitability of the deposition hole, enhancing the reliability of the results.

Hyundai E&C is also expanding its research beyond excavation technologies to include construction materials and rock engineering, aiming to ensure the long-term safety of disposal facilities. This includes developing concrete and grout for long-term performance of engineered barriers and groundwater inflow control. The company is also advancing a rock classification system specific to Korea's geological characteristics, alongside digital rock assessment and monitoring technologies. These efforts aim to secure a comprehensive range of core technologies for disposal facility construction.

An official from the HMG Construction Technology Research Institute stated that Hyundai E&C is the first Korean builder to develop dedicated deposition hole excavation equipment and verify its performance through actual rock excavation. The company aims to strengthen its capabilities across the entire nuclear lifecycle, from power plant construction and decommissioning to spent nuclear fuel disposal, to solidify its position in the global nuclear industry.

In South Korea, used fuel is currently stored on nuclear power plant sites, with many facilities nearing full capacity. In February 2025, the National Assembly passed an act mandating the construction of interim storage facilities for high-level radioactive waste by 2050 and permanent disposal facilities by 2060. The High-Level Radioactive Waste Special Act includes provisions for the construction and operation of these facilities, support for host communities, establishment of a High-Level Radioactive Waste Management Committee, and procedures for site selection and community engagement.