India's Ambitious Nuclear Energy Plans: Private Sector Set to Join the Race

The Indian government is set to amend nuclear energy regulations to allow private sector participation, aiming for a target of 100 GW of nuclear power by 2047. With plans to revise the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, the government seeks to attract investments and streamline regulatory frameworks. The Nuclear Energy Mission, which includes the development of Small Modular Reactors, is part of this ambitious strategy. This move follows interest from foreign firms after a waiver from the Nuclear Suppliers Group, but previous legislation has posed challenges. The government expects significant contributions from Public-Private Partnerships to meet its energy goals.

By Narendra Chaudhary May 19, 2025, 18:35 IST

Government's Vision for Nuclear Energy Expansion

New Delhi: The Indian government is contemplating significant changes to its nuclear energy regulations, aiming to facilitate private sector involvement as the nation targets a production capacity of 100 GW of nuclear power by 2047.

Sources within the government indicate that revisions to the Atomic Energy Act are under consideration to enable private participation, alongside adjustments to the Civil Liability for Nuclear Damage Act to cap the liability for equipment suppliers involved in constructing nuclear facilities.

Additionally, the administration is exploring regulatory reforms, drawing inspiration from the Indian National Space Promotion and Authorization Center (INSPACe), which has successfully integrated private players into the space sector since its inception in 2020.

Finance Minister Nirmala Sitharaman has announced the opening of the nuclear power sector, which has traditionally been limited to state-owned enterprises. The Nuclear Power Corporation of India Limited currently manages atomic power plants that contribute 8.7 GWe to the national energy portfolio.

Sitharaman also introduced the Nuclear Energy Mission, which focuses on the research and development of Small Modular Reactors (SMRs) with a budget of Rs 20,000 crore, aiming to operationalize five domestically developed SMRs by 2033.

Officials from the Department of Atomic Energy have stated that the Nuclear Energy Mission seeks to harness private sector investment, refine regulatory processes, and enhance nuclear power output to satisfy India's growing energy requirements.

Following a waiver from the Nuclear Suppliers Group, foreign nuclear companies have shown interest in establishing atomic power plants in India, a development that followed the pivotal India-US civil nuclear agreement in 2008.

However, the Civil Liability for Nuclear Damage Act of 2010 has posed challenges for private sector engagement, with some provisions deemed unacceptable and inconsistent with the International Convention for Supplementary Compensation for Nuclear Damage (CSC).

The government anticipates that private investments will play a crucial role in achieving the ambitious goal of 100 GWe nuclear power by 2047.

Officials estimate that approximately half of this target will be met through Public-Private Partnerships (PPP).

A parliamentary committee has also advocated for a solid financial framework that includes government incentives, Viability Gap Funding (VGF), and sovereign guarantees to attract both domestic and international investments.

The committee has urged for the swift passage of legislative amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act to foster private investment in nuclear energy generation.

India is set to develop private sector SMRs of 220 MW, known as Bharat Small Reactors (BSR), for dedicated use.