India has taken a landmark step in expanding its nuclear energy sector, with parliament approving legislation that allows private and foreign companies to participate in civil nuclear power generation.
The move, under the Atomic Energy Act, signals a major shift in the country’s energy strategy, aiming to reduce dependence on fossil fuels and meet climate targets.
The government has set an ambitious goal to increase nuclear power capacity tenfold to 100 gigawatts by 2047, enough to power nearly 60 million homes annually and essential to achieving carbon neutrality by 2070, according to dw.com
Achieving this target will require around 20 trillion Indian rupees ($226 billion) in investment, which the new legislation aims to attract from private and foreign sources.
Prime Minister Narendra Modi hailed the reform as a “transformational moment for India’s technology landscape,” highlighting the opportunities it presents for major domestic conglomerates. Tata Power, Adani Power, and Reliance Industries have already expressed interest in entering the previously tightly controlled sector.
While the government emphasizes energy security and climate commitments as the drivers of reform, experts and opposition figures have raised concerns over safety, regulatory oversight, and the reliability of the domestic supply chain.
Former envoy Ajay Bisaria noted that the legislation removes legal barriers that had prevented US and French firms from entering India’s nuclear sector since 2010, potentially paving the way for joint projects involving large reactors and small modular reactors.
However, challenges remain. Security analyst Sameer Patil highlighted risks related to fuel supply dependence, workforce development, and manufacturing capacity, as well as the delicate balance between incentivizing private investment and maintaining safety standards.
Opposition leaders have questioned whether recent changes to liability laws were expedited to align with US interests under the SHANTI (Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India) framework.
Despite these concerns, the government remains committed to transforming India’s nuclear sector into a key pillar of clean energy, while seeking to attract both domestic and foreign capital to meet its ambitious expansion targets.
