AEC clears draft FDI policy for nuclear sector under SHANTI Act

The Atomic Energy Commission (AEC) has approved a draft foreign direct investment (FDI) policy framework for India’s nuclear power sector, marking an initial step toward opening the segment to private and foreign capital. The proposal will now move to inter-ministerial consultations under the SHANTI Act, 2025.

The development was confirmed by Seema S Jain of the Department of Atomic Energy at a workshop in New Delhi. The policy is yet to be finalised and will undergo review across ministries before implementation.

The proposed framework aligns with the SHANTI Act, 2025, which seeks to expand private participation in nuclear energy. The sector has historically remained under state control, with limited scope for private or foreign investment.

India has set a target of achieving 100 GW of nuclear capacity by 2047. Meeting this goal is expected to require investment running into lakhs of crores of rupees, making external capital a key consideration.

The AEC also highlighted the “fleet mode” approach for project development. This model involves setting up multiple reactors at a single site, enabling standardisation in approvals, procurement, and construction, and reducing both costs and timelines.

The FDI policy remains subject to inter-ministerial approval. Details on permissible foreign equity, investment conditions, and project categories will be defined once the framework is finalised.

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