Key Highlights
- India plans to allow up to 49% foreign equity in nuclear power projects.
- Amendments to the Civil Liability for Nuclear Damage Act and the Atomic Energy Act are underway.
- Target to expand nuclear capacity from 8 GW to 100 GW by 2047.
- Major domestic players such as Reliance Industries and Tata Power are poised to invest roughly $26 billion.
- Foreign firms like Westinghouse, GE‑Hitachi, EDF and Rosatom have expressed interest.
Detailed Insights
India’s nuclear output currently stands at about 8 GW, a mere 2% of the nation’s total installed capacity. The proposed policy shift is part of a broader clean‑energy agenda aimed at reducing coal dependence and meeting stringent carbon‑reduction targets.
Under the new framework, foreign entities can hold up to 49% of a nuclear project, but each proposal must receive explicit government approval. The legislation changes will relax liability provisions, allowing private and foreign firms to construct, own, and operate plants, as well as mine and manufacture atomic fuel.
The government intends to table the amendments in the Union Cabinet shortly, with the goal of passing them in the Monsoon Session of Parliament scheduled for July 2025. Successful passage would unlock a pathway for a twelve‑fold increase in nuclear capacity, aligning with the 2047 target of 100 GW.
Interest from international players is already evident. Westinghouse Electric, GE‑Hitachi, EDF and Russia’s Rosatom are keen to supply technology and undertake construction contracts. Domestically, conglomerates such as Reliance Industries, Tata Power, Adani Power and Vedanta are reportedly earmarking around $26 billion for the sector.
While the policy could also open avenues for tariff negotiations with the United States, the primary hurdle has been the perception of unlimited liability under Indian law—a concern that the forthcoming amendments aim to mitigate.
Key Concepts
- Foreign Equity Threshold: The maximum percentage of ownership that foreign entities can hold in a nuclear project, set at 49% under the proposed policy.
- Liability Reform: Amendments to the Civil Liability for Nuclear Damage Act and the Atomic Energy Act that reduce the scope of unlimited liability for foreign and private operators.
- Monsoon Session: The parliamentary session in July 2025 where the government plans to pass the nuclear investment amendments.
- Capacity Expansion Target: India’s goal of increasing nuclear capacity from 8 GW to 100 GW by 2047.
- Stakeholder Interest: The engagement of both domestic conglomerates and foreign technology providers in the nuclear sector.