India's three-stage nuclear power programme was formulated by Homi Bhabha in the 1950s to secure the country’s long term energy independence, through the use of uranium and thorium reserves found in the monazite sands of coastal regions of South India. The ultimate focus of the programme is on enabling the thorium reserves of India to be utilised in meeting the country's energy requirements. Thorium is particularly attractive for India, as it has only around 1–2% of the global uranium reserves, but one of the largest shares of global thorium reserves at about 25% of the world's known thorium reserves. However, thorium is not economically viable because global uranium prices are much lower.
The country published about twice the number of papers on thorium as its nearest competitors, during each of the years from 2002 to 2006. The Indian nuclear establishment estimates that the country could produce 500 GWe for at least four centuries using just the country’s economically extractable thorium reserves.
As of August 2014[update], India's first Prototype Fast Breeder Reactor had been delayed - with first criticality expected in 2015 - and India continued to import thousands of tonnes of uranium from Russia, Kazakhstan, France, and Uzbekistan. The recent Indo-US Nuclear Deal and the NSG waiver, which ended more than three decades of international isolation of the Indian civil nuclear programme, have created many hitherto unexplored alternatives for the success of the three-stage nuclear power programme.
Homi Bhabha conceived of the three-stage nuclear programme as a way to develop nuclear energy by working around India's limited uranium resources. Thorium itself is not a fissile material, and thus cannot undergo fission to produce energy.Instead, it must be transmuted to uranium-233 in a reactor fueled by other fissile materials.The first two stages, natural uranium-fueled heavy water reactors and plutonium-fueled fast breeder reactors, are intended to generate sufficient fissile material from India's limited uranium resources, so that all its vast thorium reserves can be fully utilised in the third stage of thermal breeder reactors.