India to open nuclear energy to private players with new draft laws

India is considering major amendments to the Atomic Energy Act, 1962, which could allow private sector participation in nuclear power generation for the first time. The move aims to support the country’s target of reaching 100 GW of atomic energy capacity by 2047, up from the current 8 GW.

Two key changes are proposed. First, the financial liability of equipment suppliers in case of a nuclear accident would be capped, addressing a long-standing concern that has deterred foreign firms. Second, private Indian companies and foreign investors (up to 49%) could be allowed to invest in nuclear generation, ending the current monopoly held by the Nuclear Power Corporation of India Limited (NPCIL).

These changes are seen as essential to ramp up capacity, attract investment, and help decarbonise India’s grid. However, they raise concerns about safety and strategic autonomy, particularly around foreign involvement in a sensitive sector.

India holds over 25% of the world’s thorium reserves, but its nuclear programme remains behind schedule, with no operational thorium reactors yet. Experts say private sector participation could bring the innovation and capital needed to accelerate progress.