India Opens Nuclear Sector to Private and Foreign Investment After Decades of Government Control

New Delhi: India’s nuclear energy sector is set for a major transformation as the government has introduced draft rules that could allow private companies and foreign investors to participate in nuclear power projects for the first time after decades of strict state control.

The proposed rules under the Atomic Energy Act aim to attract private investment and advanced global technology while maintaining strict safety standards and government oversight over critical nuclear operations.

Private Firms May Develop and Operate Nuclear Projects

Under the draft framework, private companies will be allowed to develop and operate nuclear power projects after receiving necessary approvals.

Companies will first need to obtain “in-principle” approval before beginning a project. Interestingly, this approval can be granted even before the final selection of the site or reactor technology.

After receiving initial approval, companies can negotiate with technology providers, arrange land, and prepare infrastructure before moving towards final licensing.

Single License System Proposed

The draft rules propose a single unified license for nuclear projects, covering key stages such as construction, ownership, operation, and decommissioning. Currently, separate approvals are required for each phase of a nuclear project. However, strict regulatory oversight will continue throughout the process, including during design, construction, commissioning, and operations. The nuclear regulator will also have the power to halt work at critical stages if any safety concerns are identified.

Strict Rules for Foreign Reactor Technology

The government has proposed strict conditions for the entry of foreign-designed reactors into India. Under the draft rules, reactor designs must receive approval or certification from the nuclear regulatory authority of the country where the technology originates. Additionally, the reactor technology must have a proven operational track record in another country. These measures are aimed at allowing India to adopt globally tested nuclear technologies while maintaining high standards of safety and regulatory compliance.

India Targets 100 GW Nuclear Capacity

India’s nuclear sector has traditionally remained under government control, especially after international restrictions following the country’s 1974 nuclear tests.

However, recent legal changes have opened the way for greater private participation.

India aims to increase its nuclear power capacity nearly 12 times to 100 gigawatts over the next two decades. Experts believe private investment and foreign technology will be essential to achieve this ambitious target.

Major Indian companies, including Adani Green, Tata Power, and Reliance Industries, are expected to explore opportunities in the sector.

Global Nuclear Companies Could Enter India

Changes in nuclear liability rules are also expected to encourage greater participation from global nuclear companies in India’s energy sector. The government hopes these reforms will attract major international nuclear technology firms such as General Electric, Westinghouse Electric, and EDF. These companies have previously shown interest in entering the Indian market but had raised concerns over liability regulations, which were considered a major hurdle for foreign investment in the nuclear sector.

SHANTI Act Draft Rules Focus on Safety and Insurance

The Department of Atomic Energy has also released draft rules under the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act, 2025.

According to the proposed rules:

• Nuclear plant operators must maintain insurance or financial security for possible nuclear damage.
• Financial protection must continue until spent fuel is removed from storage facilities.
• Developers must maintain funds for nuclear liability, decommissioning, and radioactive waste management.

The government will review the maximum liability limit for nuclear damage every five years through an expert committee.