Editorial: Welcome policy shift in India’s nuclear power sector

If executed with prudence and transparency, the move to allow private participation in nuclear power sector could mark the beginning of a new era

The decision to permit private players in the nuclear power sector marks a decisive shift in India’s energy policy. It is poised to enhance the country’s long-term energy security and technological innovation. The announcement, made by Prime Minister Narendra Modi, comes against the backdrop of the country’s inability to substantially increase nuclear power output, a sector that remains under government control. The promise of massive additions to the installed capacity has continued to elude the Department of Atomic Energy since the 1980s, when it first set a target of 20,000 MW by 2000. For over six decades, the civilian nuclear sector has been the exclusive preserve of the state. Now, with the government preparing amendments to the Atomic Energy Act, 1962, private companies may finally be allowed a formal role in nuclear power generation. It is a reform whose time has come. Nuclear power, considered a clean, carbon-free source of energy, is crucial if India wants to decarbonise without slowing economic aspirations. The government’s ambition to reach 100 GW of nuclear capacity by 2047 cannot be met by public investment alone. Allowing private participation could unlock capital, speed up project execution and bring in operational efficiencies that government entities often struggle to guarantee. Delays and cost overruns have plagued multiple reactor projects. Competition and accountability could help overcome those structural bottlenecks. A strategic opening may also make way for advanced technologies such as small modular reactors, potentially accelerating deployment and reducing upfront costs.

While India has set a target of ‘net zero’ carbon emissions by 2070, the share of nuclear power is less than 3 per cent of its total installed capacity. This is because the nuclear industry has been a government monopoly, from uranium mining to power production. It is time for bold reforms in this sector to meet the target of a 10-fold increase by 2047 from the current capacity of 8.8 GW. The Atomic Energy Bill, 2025, has been listed for introduction during the winter session of Parliament beginning December 1. It will open the nuclear power sector to private participation and create opportunities in small modular reactors, advanced reactors and nuclear innovation. While presenting the Union Budget in February, Finance Minister Nirmala Sitharaman had also announced plans to amend the nuclear liability law. India has also announced up to 49 per cent foreign direct investment (FDI) in nuclear power plants to boost nuclear capacity and reduce reliance on coal as part of the country’s carbon reduction goals. Allowing private investment should not mean withdrawal of the state. In fact, the government must remain the guarantor of safety and accountability while enabling industry to deliver technology and scale. India has an opportunity to become not just a large nuclear market but a global innovation hub in the sector. If executed with prudence, transparency and long-range strategy, the shift toward private participation could mark the beginning of a new era.

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