India has submitted a bill aiming to end the state’s monopoly over nuclear energy, allowing for the first time private companies to directly participate in building and operating nuclear plants. The proposed legislation, titled “Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India Bill, 2025,” was presented to Parliament and marks a significant shift in national energy policy.
A strategic shift to attract private capital
The bill allows any entity “expressly authorised by the central government” to apply for a licence to operate in the nuclear sector. This provision paves the way for private players such as Tata Power, Adani Power, and Reliance Industries, which have been identified as interested in a combined investment of approximately INR2.16tn ($26bn). Foreign companies will also be able to enter the Indian market through joint ventures with local partners, subject to government selection.
India currently has an installed nuclear capacity of 8.2 gigawatts (GW), entirely owned by the state-run Nuclear Power Corporation of India Ltd (NPCIL). The government’s ambition is to reach 100 GW of capacity over the next twenty years, an objective that requires significant capital and technological mobilisation.
New regulatory framework and expanded liability coverage
The proposed law removes a previous clause that allowed operators to sue suppliers for equipment defects, a requirement considered restrictive by international suppliers such as General Electric, Westinghouse Electric, and Électricité de France. This measure aims to eliminate a major barrier to the entry of foreign vendors into the Indian market.
Civil liability in the event of a nuclear accident will be doubled for large reactors, rising to INR30bn ($330.75mn), while the overall compensation cap remains unchanged. A nuclear liability fund is also planned to cover claims, in line with international standards.
State retains control over sensitive activities
Although private operators will now be allowed to import and process uranium, strategic activities such as uranium mining, fuel enrichment, and fuel reprocessing will remain under state control. All operations will require prior licensing, including those involving joint ventures with foreign entities.
This legislative reform could redefine the role of nuclear energy in India’s energy mix while shifting investment responsibilities from the public sector to industrial partners capable of financing large-scale new projects.
