For decades, India stood out in the global nuclear landscape by betting heavily on thorium as the key to solving its long-term energy needs. However, on 17 April 2025, the South China Morning Post (SCMP) reported a major global development—China has successfully operationalized a 2 MW molten salt reactor (MSR) powered by thorium. This achievement shifts the narrative, placing China at the forefront of the thorium energy race and pushing India to re-evaluate its nuclear strategy.

Understanding China's Thorium Reactor Breakthrough

China’s 2 MW thorium molten salt reactor, located in the Gobi Desert, is the first of its kind in the world to operate using thorium-based molten salt technology. Though the design isn’t entirely new, Chinese researchers adapted and built upon declassified data from the US Oak Ridge National Laboratory’s Molten Salt Reactor Experiment (MSRE), which had operated briefly in the 1960s.

Molten salt reactors are advanced fission reactors where liquid fuel is used instead of solid fuel rods. In China’s case, molten salt acts both as a coolant and a fuel carrier, which allows for higher efficiency and inherent safety features compared to conventional reactors.

China’s access to thorium is significant. As a byproduct of its rare earths industry, the country has an abundant supply of this fertile material. This positions China not just as a global leader in rare earth processing, but also in next-generation nuclear energy.

While there is skepticism surrounding Chinese scientific reporting, sources like IEEE and ABC News have also validated China’s reactor progress, lending credibility to the SCMP report.

India’s Original Vision: The Three-Stage Nuclear Programme

India’s nuclear roadmap was laid out by Homi J. Bhabha in the 1950s. The three-stage nuclear programme was a visionary strategy to maximize the energy potential of thorium, considering India’s limited uranium reserves but abundant thorium resources.

Here’s a quick look at each stage:

1. Stage One – PHWRs (Pressurised Heavy Water Reactors)
   Use natural uranium as fuel to produce plutonium-239 (Pu-239) as a byproduct.

2. Stage Two – Fast Breeder Reactors (FBRs)
   Utilize Pu-239 and depleted uranium to breed more fissile material. Thorium blankets can be introduced here for irradiation.

3. Stage Three – Thorium Reactors
   Thorium (Th-232) converts into fissile uranium-233 (U-233) inside the reactor, which can then be used as fuel.

According to a study in the Journal of Nuclear Materials, India’s thorium reserves could potentially generate 358,000 GWe-yr of electricity, sufficient to meet its energy demands for over a century.

Current Progress: Where India Stands Now

Despite the decades-old vision, India has made limited progress beyond the first stage.

• Stage One has been successfully implemented, with about 20 PHWRs currently operational.

• Stage Two, represented by the 500 MW Prototype Fast Breeder Reactor (PFBR) at Kalpakkam, is still under construction and is expected to become operational only by September 2026.

• Stage Three remains in the research and development phase with no active reactors running on thorium yet.

This sluggish progress has seriously delayed India’s ability to utilize its vast thorium reserves, especially in contrast to China’s bold strides.

India’s Efforts at Bridging the Gap: AHWRs

To address the delay in implementing the third stage, India has proposed Advanced Heavy Water Reactors (AHWRs), designed to use thorium directly and bypass the second stage.

According to SK Jain, former chairman of the Nuclear Power Corporation of India, AHWRs were meant to serve as a bridge between the first and third stages. However, even this has stalled at the design phase for nearly a decade.

Why Molten Salt Reactors Matter

MSRs like China’s 2 MW design offer several strategic advantages:

• High thermal efficiency due to operating at high temperatures.

• Inherent safety with passive cooling mechanisms.

• Online fuel processing, reducing downtime.

• Minimal nuclear waste compared to conventional reactors.

Most importantly, MSRs can efficiently use thorium, something traditional PHWRs or FBRs are not optimized for.

Lessons India Must Learn from China

India’s nuclear planners must now recognize that the three-stage plan is too slow and rigid to adapt to global changes in nuclear technology. It has fulfilled part of its purpose—especially regarding the production of weapons-grade plutonium—but the civilian energy goal of thorium exploitation remains unfulfilled.

Recommendations for India Going Forward

1. Parallel Thorium Pathway
   India should launch a parallel thorium reactor program, independent of the current three-stage sequence.

2. Invest in Alternate Reactor Designs
   India must explore molten salt reactors (MSRs), high-temperature gas-cooled reactors (HTGRs), and accelerator-driven systems (ADS).

3. International Collaborations
   Partnering with global institutions working on thorium reactors can fast-track indigenous development.

4. Policy and Regulatory Push
   India needs a strong policy directive, perhaps through the NITI Aayog or Department of Atomic Energy (DAE), to define realistic and short-term thorium milestones.

5. Public-Private R&D Model
   Like in the space sector, India should explore PPP (Public-Private Partnerships) to boost innovation in nuclear energy.

6. Awareness and Education
   Greater public awareness and investment in nuclear education can help build a strong talent pipeline for the future.

Conclusion: A Wake-Up Call India Cannot Ignore

China’s operational thorium MSR is not just a technological milestone, but a strategic shift in global nuclear dynamics. It directly challenges India’s long-standing claim of leading thorium-based research. The message is loud and clear — India must act fast.

The three-stage programme may have served strategic goals in the past, but it is no longer sufficient to meet India’s rising energy demands or global climate commitments. With abundant thorium reserves and a legacy of nuclear research, India has everything it needs to take the lead again—what it requires now is urgency, vision, and commitment.

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