File Photo: A section of the Prototype Fast Breeder Reactor (PFBR) showing the complexity of the equipment that has gone into its making, in Kalpakkam, Tamil Nadu
| Photo Credit:
RAGU R

A Parliamentary Committee has expressed unhappiness over the delays in—and mounting cost of—executing the 500 MW Prototype Fast Breeder Reactor (PFBR) nuclear power project, whose construction began in 2004.

The cost of the project is today estimated at ₹8,181 crore, compared with its original cost of ₹3,492 crore. For over a decade, the project has been “ready for commissioning next year.”

The Parliamentary Standing Committee on Science and Technology, Environment, Forests and Climate Change, which examined the ‘demands for grants’ of the Department of Atomic Energy (DAE), has noted that the project “remains in the commissioning stage without having commenced power production, and that no operating revenue, profit or dividend has been generated by BHAVINI (the government company set up for the project).”

The PFBR project is of critical national importance, as it would set a template for India’s ambition to set up more fast breeder reactors. Fast breeder reactors use as fuel the plutonium-239 that comes out as waste in the conventional uranium-235 reactors, and generate more plutonium-239 – which is why they are called breeders. More importantly, they pave the way for using thorium as nuclear fuel—India has plenty of thorium. As fast breeder reactors generate energy, they can also convert thorium into uranium-233, which is nuclear fuel.

Thus, the PFBR is the first step in India getting into the second of the planned three-stage programme—the three phases can be broadly understood as relating to the use of uranium, plutonium and thorium as nuclear fuel.

Yet, the project, which was originally slated to be completed by 2011, has already been delayed by 15 years.

The committee has expressed “deep concern” over this delay and has called upon the government to “introduce a milestone-linked budgetary release mechanism for BHAVINI,” so as to align financial flows with actual technical progress. It has also asked BHAVINI to seek international help “to reduce the risk of recurring technical delays.”

The Budget for 2025-26 allocated ₹374 crore to BHAVINI which was later slashed to ₹150 crore when the revised estimates were drawn up. Still, BHAVINI could spend only ₹50 crore till December 2025.

The committee has observed that “BHAVINI’s severe underutilisation is particularly concerning given that approximately 70 per cent of the PFBR core has been loaded as of February 2026.”

Related project delayed 

Meanwhile, the ₹9,589 crore ‘fast reactor fuel cycle facility’ (FRFCF) project, which is closely related to the PFBR, has also been hugely delayed. The project, meant to reprocess the spent fuel coming out of the PFBR, was originally expected to be ready for operations in 2014. Last week, the Department of Atomic Energy told the Rajya Sabha that it is expected to be commissioned in December 2029.

While the FRFCF project has no relevance until the PFBR is commissioned, it is worth noting that the government has already spent ₹4,904 crore on it.

Published on April 5, 2026

The Reserve Bank is likely to keep the benchmark policy repo rate unchanged at 5.25 per cent in the April monetary policy review meeting, as the West Asia crisis is likely to push up inflation, according to economists.

The continuing geopolitical tensions in West Asia, volatility in commodity prices and sharp currency movement that have seen the rupee hit record lows have complicated the policy outlook, and its projections on growth, inflation and also the stance of policy will be keenly watched, the poll of over a dozen economists said.

“Given the uncertainty around crude oil prices and geopolitical developments, the RBI is likely to remain on pause in the April policy and closely monitor incoming inflation data before taking any further action,” said Aditi Nayar, Chief Economist at ICRA.

SBI’s chief economist Soumya Kanti Ghosh said while announcing the pause, the RBI will be careful in communicating its decision.

“India is not unscathed from the current crisis and is feeling the mercury rising. Rupee is already hovering above 93 per dollar, and crude oil is adamant above USD 100 per barrel, resulting in a jump in imported inflation across states,” Ghosh said, adding that the projected “super El Nino” will also put pressure on inflation.

Dipti Deshpande, principal economist, Crisil, said under the base case expectation that inflation stays close to the MPC’s target, the monetary policy may look through this supply shock and will keep rates on hold.

The central bank has so far reduced the repo rate by 1.25 per cent since last February, as the cool down in inflation offered it the space to work towards further boosting growth. However, the central bank kept the rate unchanged in the August, October and February 2026 monetary policies.

The six-member monetary policy committee is scheduled to start its April policy review meeting on Monday, and the final vote on one of the most challenging policy reviews will happen on Wednesday.

Economists noted that while retail inflation has moved closer to the RBI’s medium-term target of 4 per cent, the recent surge in global crude oil prices has raised concerns about potential second-round effects on domestic prices, particularly fuel, transportation, and core inflation components.

As per estimates, every USD 10 increase in crude prices per barrel stokes inflation by up to 0.60 per cent. Crude prices, which were in the USD 60 per barrel vicinity for long, have hardened to over USD 100 since the start of the conflict in late February. Additionally, the rupee has depreciated by over 4 per cent since the war, which has consequences for pushing up import inflation.

“We do not expect any change in repo rate or stance this time. The tone will be cautious, and what will be eagerly awaited is the RBI’s forecast of GDP and inflation under the prevailing uncertainty,” state-run lender Bank of Baroda’s chief economist Madan Sabnavis said.

HDFC Bank’s principal economist, Sakshi Gupta, however, advised that a rate decision based on short-term developments may not be prudent at this stage, especially when global commodity prices remain volatile.

“The central bank would prefer to wait for clearer signals on the inflation trajectory,” said Gupta.

Several economists indicated that the RBI may reassess its inflation and growth projections in the upcoming policy to reflect evolving global risks.

There is a possibility that the central bank could revise its inflation forecast upward for the current financial year if crude oil prices remain elevated for a prolonged period.

Given the prevailing situation, the focus of the policy will turn towards managing inflation rather than supporting growth, the economists said.

“While domestic growth conditions remain supportive, the persistence of global uncertainties could weigh on exports and investment activity, requiring the RBI to maintain policy flexibility,” said a treasury official at a private sector bank.

Economists expect the central bank to retain its current policy stance of neutral in the upcoming review, reflecting a preference to maintain flexibility amid evolving inflation dynamics and global uncertainties.

The tone of the policy is expected to remain cautious and watchful, with policymakers likely to highlight upside risks to inflation from volatile crude oil prices and geopolitical tensions.

Economists further said liquidity conditions, transmission of past rate changes, and financial market stability will remain key considerations for policymakers.

The RBI is also expected to closely monitor currency movements, capital flows, and bond market dynamics while calibrating its policy stance.

Published on April 5, 2026

OPEC+ may ⁠approve an oil output increase on Sunday, four sources from the group said,
a rise that will largely exist on paper as its key ‌members are
unable to raise production due to the U.S.-Israeli war with
Iran.

The war has effectively shut the ‌Strait of Hormuz – the
world’s most important oil route – ‌since ⁠the end of February and
cut exports from ⁠OPEC+ members Saudi Arabia, the UAE, Kuwait and
Iraq, the only countries in the group which were able to
significantly raise production even before the ​conflict began.

Other group members ‌such as Russia are unable to increase
output due to Western sanctions and damage to infrastructure
inflicted during the war with Ukraine.

Inside the Gulf, damage to infrastructure from ‌missile and
drone attacks has also been severe. Several ​Gulf officials have
said it would take months to resume normal operations and reach
production targets even ⁠if the war stopped and Hormuz reopened
immediately.

At its last meeting on March 1, just as the war began to
disrupt ‌oil flows, OPEC+ agreed to a modest output boost of
206,000 barrels per day for April.
A month later, the largest oil supply disruption on record is
estimated to have removed as many as 12 to 15 million barrels
per day or up to 15% of global supply.

Crude prices ‌have soared to a four-year high close to
$120 a barrel. ​Oil prices could spike above $150 – an all-time
high – if flows via Hormuz remain disrupted into mid-May,
JPMorgan said ⁠on Thursday.

Sunday’s meeting will discuss OPEC+ quotas for May, sources
said.

An ⁠increase will have little immediate impact on supply but
would signal readiness to raise output once Hormuz ‌reopens,
OPEC+ sources have said. Consultancy Energy Aspects called the
increase “academic” as long as disruptions in the strait
persist.

Published on April 5, 2026