Govt Plans Nuclear Law Tweaks to Woo Private Players
In a significant policy overhaul aimed at reviving India’s nuclear energy ambitions, the central government is preparing to amend key nuclear laws during the upcoming monsoon session of Parliament. The move seeks to open the nuclear power sector to private operators while relaxing stringent liability norms that have long deterred investment. With a target of achieving 100 GW of nuclear power capacity by 2047, these amendments are being touted as a game changer for India’s clean energy future.
Nuclear Liability Law Set for Reform
One of the two proposed amendments focuses on the Civil Liability for Nuclear Damage Act, 2010. Under current provisions, equipment suppliers can be held indefinitely liable in the event of a nuclear mishap—an anomaly compared to international norms. This has discouraged major players like GE-Hitachi, Westinghouse Electric, and EDF from supplying technology to India.
The new amendment is expected to cap supplier liability to the value of the original contract and introduce a statute of limitation for filing claims. By bringing Indian law in line with global conventions such as the Convention on Supplementary Compensation for Nuclear Damage, the government hopes to revive interest from foreign technology providers and unlock stalled deals.
Private Sector Entry into Nuclear Power
The second major proposal involves amending the Atomic Energy Act of 1962, which currently reserves nuclear power generation for government-run entities. The government now intends to permit Indian private firms to build, operate, and manage nuclear power plants, though ownership of fissile material will still rest with the state.
This move could trigger massive investments from Indian giants such as Reliance Industries, Tata Power, Adani Power, and Vedanta Ltd, all of whom are reportedly exploring investments in the range of ₹42,000 crore each. The proposal may also allow up to 49% foreign equity in nuclear projects, thereby incentivizing global partnerships and joint ventures in the sector.
Strategic Goals and Policy Push
India’s larger goal is to diversify its energy mix, cut carbon emissions, and reduce overreliance on fossil fuels. Finance Minister Nirmala Sitharaman had earlier announced a ₹20,000 crore allocation for a Nuclear Energy Mission, aimed at accelerating research into small modular reactors and advanced safety technologies.
External Affairs Minister S. Jaishankar, too, has underlined the urgency of liability reform, stating that the existing framework has failed to inspire global confidence. He argued that updating India’s nuclear laws is essential for operationalizing agreements such as the Indo-U.S. Civil Nuclear Deal, signed nearly two decades ago but largely dormant due to legislative roadblocks.
The amendments are expected to be introduced during the monsoon session beginning July 2025. If passed, they could usher in a new era of public-private partnership in India’s nuclear landscape, marking a decisive shift in both energy policy and foreign investment strategy.
