India Moves to Open Nuclear Power Sector to Private and Foreign Investment

India has proposed landmark legislation that would end more than six decades of state monopoly over nuclear power generation, allowing private companies — and even individuals — to build, own and operate nuclear reactors for the first time.

The proposed law, titled the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025, must be approved by both houses of parliament before it can come into force.

Ending a Long-Standing Monopoly

Since 1962, India’s civil nuclear sector has been restricted to state-controlled entities under the Department of Atomic Energy, primarily the Nuclear Power Corporation of India (NPCIL). A 2015 amendment allowed other state-run companies to form joint ventures with NPCIL, leading to partnerships with NTPC, Indian Oil Corporation and NALCO. However, none of those projects have resulted in completed nuclear plants.

The new bill would dismantle those restrictions by allowing private players to fully own and operate nuclear power facilities. Sensitive activities — including uranium enrichment, spent fuel reprocessing and heavy water production — would remain under government control.

Why the Reform Matters

India aims to expand its nuclear power capacity to 100 gigawatts over the next two decades, up from just 8.2 GW currently, positioning atomic energy as a central pillar of its clean energy transition.

The proposed reform could unlock billions of dollars in private investment from major Indian conglomerates such as Tata Power, Adani Power and Reliance Industries, all of which have announced interest in nuclear energy. The legislation would also allow private firms to import and process uranium, while opening the door to foreign technology partnerships.

Foreign Investment and Technology

Global nuclear suppliers — including Westinghouse Electric and GE-Hitachi of the United States, France’s EDF, and Russia’s Rosatom — have expressed interest in India’s nuclear expansion plans. The bill permits foreign direct investment through joint ventures with Indian companies, though foreign-controlled firms would not be eligible to hold operating licences.

Liability Rules Eased

A key change in the proposed law is the removal of a controversial clause that allowed plant operators to seek compensation from equipment suppliers in the event of defects. That provision had long deterred foreign vendors.

By easing liability exposure, the new framework reduces legal risk, makes insurance coverage more feasible for suppliers, and is expected to attract greater international participation.

Safety and Compensation Framework

All nuclear operators would still require government licences and safety clearance from the Atomic Energy Regulatory Board. Companies would be required to maintain liability funds ranging from approximately $11 million to $330 million, depending on reactor capacity.

In the event of a nuclear accident, compensation would be drawn from operators’ insurance-backed liability funds, capped at 300 million Special Drawing Rights — an International Monetary Fund reserve unit — in line with international standards.

If passed, the bill would mark one of the most significant shifts in India’s energy policy, reshaping its nuclear sector and potentially accelerating the country’s transition to low-carbon power.