India is preparing to amend its atomic energy legislation to allow direct participation of private companies in nuclear power generation. The announcement comes ahead of the winter parliamentary session, where the Atomic Energy Bill, 2025 is scheduled to be introduced. The reform would mark a major shift in India’s nuclear sector, which has long been restricted to state-owned enterprises.
Towards a strategic legislative reform
India’s nuclear sector is currently governed by the Atomic Energy Act of 1962, which prohibits private or foreign entities from owning or operating nuclear power plants. Only two public companies, Nuclear Power Corporation of India Ltd (NPCIL) and Bharatiya Nabhikiya Vidyut Nigam Ltd (BHAVINI), are legally authorised to manage nuclear projects. However, the government has initiated steps to amend this legal framework, including the 2010 Civil Liability for Nuclear Damage Act.
According to Prime Minister Narendra Modi, opening the sector will help attract investment in technologies such as advanced reactors and small modular reactors. He stated that this move would strengthen the country’s energy security and consolidate its technological standing.
Target of 100 GW by 2047
India currently operates 24 nuclear reactors with a total capacity of 7,943 MW. Six additional reactors, representing 4,768 MW, are under construction, while ten more units—about 7 GW—are in early project stages. Under its Viksit Bharat development strategy, India has set a nuclear capacity target of 100 GW by 2047.
The Ministry of State for Atomic Energy has already formed committees to study and propose necessary legal amendments. These changes aim to allow domestic companies and private investors to contribute to the expansion of India’s nuclear capacity, which plays a central role in the country’s energy strategy.
Inspired by the space sector model
The Prime Minister drew a parallel with the recent liberalisation of the Indian space sector. Opening it to private innovation has resulted in a cooperative and technology-driven ecosystem, as demonstrated by the development of the Vikram-I orbital rocket by Skyroot Aerospace. The government now seeks to replicate this approach in nuclear energy.
The introduction of the draft bill in the parliamentary session is expected to be the first legislative step. The exact scope of the reform and the mechanisms for private sector involvement will be closely monitored by industry and financial stakeholders.
