Government Initiatives to Boost Private Investment in Nuclear Energy
New Measures for Nuclear Energy Investment
The central government is preparing to implement strategies aimed at encouraging private sector investments in nuclear energy, as part of a broader initiative to promote a green transition. These strategies will feature guaranteed power purchase agreements, and discussions with technology developers, operators, and investors are expected to commence soon, according to Abhay Karandikar, a member of Niti Aayog. He also mentioned that the government is in the process of establishing regulations under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025.
Karandikar indicated that the government might explore providing financial incentives to stimulate private sector involvement. He emphasized the importance of gathering input from stakeholders regarding capital investments and technological readiness before the government outlines a strategy for the sustainable growth of nuclear energy in India.
The government has launched a Nuclear Energy Mission with the goal of achieving 100 GW of nuclear capacity by 2047, in line with India's clean energy objectives. The SHANTI Bill, 2025, allows private enterprises to engage in India's nuclear sector, enabling them to manage plant operations, generate power, manufacture equipment, and perform specific tasks such as nuclear fuel fabrication, including the conversion, refining, and enrichment of uranium-235 up to a defined threshold, as well as the production, use, processing, or disposal of other designated materials. Furthermore, any activities involving radiation exposure must receive prior safety authorization from the regulatory body.
To support the private sector, financial assistance could be provided through the Rs 1 lakh crore Research Development and Innovation (RDI) scheme, or a dedicated fund could be established to assist private entities during the initial phases, as reported by a media outlet. The RDI scheme offers long-term, low-interest, and unsecured loans to private companies and startups to expedite the development of transformative technologies, including those in nuclear energy.