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The third stage of Indian nuclear power programme envisages the use of thorium as the fertile material with 233 U, which would be obtained from the operation of Pu/Th-based fast reactors in the later part of the second stage. Thorium-based reactors have been designed in many configurations, from light water-cooled designs to high-temperature liquid metal-cooled options. Another option, which holds promise, is the molten salt-fuelled reactor, which can be configured to give significant breeding ratios. A crucial part for achieving reasonable breeding in such reactors is the need to reprocess the salt continuously, either online or in batch mode. India has recently started carrying out fundamental studies so as to arrive at a conceptual design of Indian molten salt breeder reactor (IMSBR). Presently, various design options and possibilities are being studied from the point of view of reactor physics and thermal hydraulic design. In parallel, fundamental studies on natural circulation and corrosion behaviour of various molten salts have also been initiated.