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Nilesh Shah: Electrification, Nuclear Push Key to Cut India's Energy Import Risk

Nilesh Shah, MD of Kotak Mutual Fund, emphasizes that reducing India's dependence on energy imports is critical for long-term economic security. He advocates for accelerated electrification across sectors, including transport, to replace petrol and diesel. Shah highlights India's natural advantage in scaling nuclear power, particularly through its thorium reserves and fast breeder reactor technology. A diversified strategy involving domestic coal, solar, and robust battery supply chains is essential to insulate the economy from global shocks.

Key Points: India's Energy Security: Electrification & Nuclear Power, Says Nilesh Shah

  • Reduce energy import vulnerability
  • Accelerate nationwide electrification
  • Scale up domestic nuclear power
  • Build battery supply chains
  • Expand rooftop solar capacity
2 min read

Electrification, nuclear push key to cutting India's energy import risk: Nilesh Shah

Kotak MF's Nilesh Shah urges accelerated electrification and a nuclear push to reduce India's vulnerability to external energy shocks and import dependency.

"We are still dependent upon energy import. Availability of supply is very, very important. - Nilesh Shah"

New Delhi, April 23

Emphasising the need to reduce India's vulnerability to external energy shocks, MD Kotak Mutual Fund and member PM's economic advisory committee, Nilesh Shah, has called for accelerated electrification and a stronger push towards nuclear energy to cut dependence on imports.

Speaking in an interview with ANI, Shah said that while India's resilience has improved compared to past crises, energy imports remain a critical risk. "We are still dependent upon energy import. Availability of supply is very, very important," he noted, referring to ongoing geopolitical tensions impacting oil markets.

He stressed that electrification across sectors is key to long-term energy security. "We have to focus on the electrification of India... Can we do that for the rest of the economy? Replace petrol-diesel car with electric and hybrid?" he said, adding that building domestic supply chains for batteries and reducing reliance on foreign rare earths would be essential.

Highlighting structural shifts already underway, Shah pointed out that Indian Railways' transition away from diesel to electricity offers a model. "Even if diesel imports drop to zero, our railways will continue to work because it's run on electricity," he said.

On future energy sources, Shah underlined the importance of nuclear power. "Nuclear will be one way. We have created fast breeder reactor... and the third stage will be thorium-based reactor. We have 25% of global thorium supply," he said, suggesting India has a natural advantage in scaling nuclear capacity.

He also called for better utilisation of domestic resources, including coal and solar energy. "If we start mining and producing electricity, that will be good," he said, while adding that rooftop solar could significantly expand capacity. "Today, there are 30 lakh houses... tomorrow, there could be 3 crore."

Shah argued that a diversified energy strategy would help India withstand future crises more effectively. "By putting our resources into electrification... we'll be able to reduce energy dependency," he said.

He added that such measures are crucial to ensuring that future global disruptions do not translate into domestic economic instability.

- ANI

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Reader Comments

P
Priya S
The focus on thorium-based reactors is exciting. We have the world's largest reserves, so why aren't we moving faster on this? This could be a game-changer for our energy security.
R
Rohit P
Good points, but what about the cost? Electric cars are still too expensive for the common man. The government needs to provide stronger subsidies and build charging infrastructure first.
S
Sarah B
As someone working in renewable energy, I agree with the rooftop solar push. The potential is massive, but the bureaucratic hurdles for installation need to be removed. Make it easier for homeowners!
V
Vikram M
Nuclear energy is the way forward for base load power. Solar and wind are good but intermittent. We need a solid plan to scale up nuclear plants safely and quickly. Jai Hind!
K
Kavya N
While I appreciate the vision, we must not forget the environmental impact of mining for rare earths and coal. A 'diversified strategy' must also be a sustainable one. Let's learn from past mistakes.
M
Michael C
Interesting perspective. India's scale makes this electrification challenge enormous, but also the opportunity. Building domestic battery supply chains is critical to avoid trading oil dependency for lithium dependency.

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