Government Plans Amendments to Atomic Energy Laws and Liability Framework
New Delhi, May 19 — The Indian government is considering major legislative reforms in the nuclear energy sector to enable private sector participation as part of its ambitious goal to scale up nuclear power capacity to 100 GW by 2047.Sources indicate that amendments are being planned to the Atomic Energy Act to open up the nuclear sector to private players. Simultaneously, changes to the Civil Liability for Nuclear Damage Act, 2010 are under consideration to limit supplier liability — a key factor that has discouraged both domestic and foreign investment in nuclear infrastructure.
Regulatory Model May Mirror Space Sector Reforms
In addition to legislative amendments, regulatory reforms are also being explored. The government is evaluating models like IN-SPACe — the Indian National Space Promotion and Authorization Center — which was instrumental in facilitating private participation in the space sector from 2020 onwards.New Era of Nuclear Energy Under the Finance Minister’s Vision
Finance Minister Nirmala Sitharaman recently announced that the nuclear sector, historically reserved for public sector entities, will now open up to private participation. The Nuclear Power Corporation of India Ltd (NPCIL)currently manages India’s atomic power fleet, which contributes approximately 8.7 GW (GWe) to the national energy mix.Sitharaman also launched the Nuclear Energy Mission with a budget outlay of ₹20,000 crore, focusing on the research, development, and deployment of five indigenously developed Small Modular Reactors (SMRs) by 2033.
Public-Private Partnerships to Play Crucial Role
Officials from the Department of Atomic Energy (DAE) emphasized that the Nuclear Energy Mission will be driven by private sector involvement, regulatory simplification, and large-scale nuclear power generation. The government envisions Public-Private Partnerships (PPPs) contributing nearly 50 percent of the 100 GW nuclear target.India also plans to introduce 220 MW Bharat Small Reactors (BSRs) for captive use by private industries. NPCIL has already issued a Request for Proposals (RFP) to Indian firms for setting up these modular units.
Removing Hurdles to Foreign Participation
While foreign nuclear firms showed interest following India’s 2008 civil nuclear agreement with the US and the Nuclear Suppliers Group (NSG) waiver, the Civil Liability for Nuclear Damage Act has remained a significant barrier. Industry stakeholders have cited its liability provisions as inconsistent with the Convention on Supplementary Compensation for Nuclear Damage (CSC).Policy Support and Financial Incentives on the Horizon
A parliamentary committee has recommended the creation of a strong financial ecosystem, including sovereign guarantees, Viability Gap Funding (VGF), and other incentives to draw both domestic and global investors into the sector. It also called for fast-tracking amendments to both nuclear-related laws to unlock private capital and technical expertise.The overhaul of India’s nuclear energy policy marks a critical pivot toward energy security and clean power as the country pushes to meet its growing energy needs while reducing carbon emissions.