India has moved to loosen long-standing restrictions in its nuclear power sector as it looks to speed up capacity additions and close widening funding gaps.
Legal amendments introduced in parliament on Monday would allow private companies to participate in a field that has remained under state control for decades.
The proposed changes reflect pressure on the government to secure reliable, low-carbon electricity while keeping pace with rising demand.
They also mark a shift in policy thinking, as nuclear power regains prominence globally amid concerns over energy security, emissions, and the electricity needs of data centres and artificial intelligence-driven growth.
Bill aims to scale nuclear capacity
The amendments seek parliamentary approval for a framework that would support building 100 gigawatts of nuclear capacity by 2047, the year India aims to achieve developed-nation status.
Power ministry estimates suggest the effort would require investments of about $213 billion, a scale that has proven difficult to meet through public funding alone.
India currently operates 25 nuclear reactors with a combined capacity of 8.8 gigawatts. All are run by the state-owned Nuclear Power Corporation of India Ltd.
With private firms barred from building or operating reactors, expansion has lagged behind earlier targets.
An initial plan to reach 63 gigawatts of nuclear capacity by 2032 was later scaled down after delays and financing constraints became evident.
Global energy trends add urgency
The push to reform India’s nuclear sector comes as governments worldwide reassess the role of atomic power.
Japan is gradually restarting reactors that were shut down after the 2011 Fukushima disaster.
The UK, China, and South Korea are building new facilities to diversify their energy mix.
This renewed interest is driven by decarbonisation goals and surging electricity demand linked to digital infrastructure and industrial growth.
For India, where coal remains the dominant source of power, nuclear energy is increasingly viewed as a way to provide stable baseload electricity while limiting long-term reliance on fossil fuels.
Liability rules shaped market access
India’s cautious approach to nuclear liberalisation has deep roots. After the 1984 Bhopal gas leak, which killed thousands, the country introduced some of the world’s strictest industrial liability rules.
India became the only nation to impose accident liability on both equipment suppliers and plant operators.
These regulations discouraged foreign participation and stalled multiple projects.
Companies such as General Electric stayed out of the market, while planned developments involving Westinghouse Electric and Electricite de France struggled to progress.
Industry observers do not expect major political hurdles for the proposed amendments.
The opposition Congress party is expected to back the move, having supported the 2008 nuclear agreement when it was in government.
With the Bharatiya Janata Party and its coalition partners holding majorities in both houses of parliament, passage of the bill appears likely.
Opposition has come mainly from civil society. The National Alliance for Anti-nuclear Movement has argued that the legislation could normalise land acquisition for nuclear projects and increase exposure to radioactive waste.
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