Centre prepares rules for private sector entry into nuclear power projects

The Indian government is working on a legal framework to enable private participation in nuclear power generation. Opening the sector to private companies would require amendments to key legislations, including the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. Both laws were originally drafted to support only public sector-led development. 

Currently, nuclear power generation in India is restricted to state-owned entities, primarily the Nuclear Power Corporation of India Ltd (NPCIL). According to The Economic Times, the proposed policy changes would introduce eligibility norms for private players. 

Criteria under consideration include stable financial performance, prior experience in executing large-scale infrastructure projects, and sound operational and financial health. These conditions would be formally outlined after relevant legislative changes are approved and notified.

India’s nuclear power landscape includes 23 operational reactors with a total installed capacity of 8.8 GW. The government plans to raise capacity to 22 GW by 2032, and 100 GW by 2047, in line with clean energy targets.

The emphasis on expanding nuclear capacity was reiterated by PK Mishra, Principal Secretary to the Prime Minister, who recently called for innovation, cost efficiency, and timely project delivery to improve the economic viability of nuclear energy. He also underlined the importance of affordable financing and private sector involvement to reduce power tariffs.

In parallel, India is developing three types of small modular reactors (SMRs) through indigenous R&D. These include a 200 MWe Bharat SMR, a 55 MWe reactor, and a 5 MWth High Temperature Gas Cooled Reactor designed for hydrogen production.