India moves to reshape nuclear sector with private participation

Prime Minister Narendra Modi has announced that the government will open the nuclear power sector to private participation. The proposal will be introduced through the Atomic Energy Bill, 2025, which is scheduled for the coming winter session of Parliament. The reform is positioned as a step to improve long-term energy security.

In a video message, the Prime Minister said the plan is intended to support investment in small modular reactors and advanced nuclear technologies. The decision marks a shift for a sector that is currently run only by the Nuclear Power Corporation of India Ltd, which operates 23 reactors with a combined capacity of 8.8 GW.

The government’s targets of 22 GW by 2032 and 100 GW by 2047 form the backdrop for this change. To draw investment, the government is also evaluating whether private companies can be permitted to mine, import, and process uranium. These activities are now confined to state-owned firms. Domestic uranium is expected to supply only about one quarter of the requirement for a larger reactor fleet.

Earlier attempts to bring in private players have faced delays. An NPCIL tender for small modular reactors issued in March 2024 has been postponed several times.

According to the Central Electricity Authority (CEA), private sector participation will require changes to the Atomic Energy Act, the Civil Liability for Nuclear Damage Act, and the licensing system. Suggested amendments include clear rules for nuclear fuel handling, limits on supplier liability, wider AERB oversight, and simpler approvals for construction. The average timeline from consent to criticality is 11 to 12 years. Land remains a challenge due to safety rules and public concerns. The CEA recommended brownfield expansion, state level incentives, and technology neutral site selection.