For over six decades, the nuclear power ecosystem in India seemed to function like a sealed, strategic enclave: tightly controlled and centrally supervised, inaccessible to private capital. That era may soon be over. Prime Minister Narendra Modi has signalled a major restructuring of the sector, announcing that private companies will soon enter nuclear power generation for the first time in independent India’s history.
The shift is linked to the government’s proposal to bring in the Atomic Energy Bill, 2025, in the coming Winter Session of Parliament as it will change the basic manner in which India constructs, finances and expands its atomic infrastructure.
Why the government wants private players now
India’s electricity consumption is growing at a record pace. While solar and wind have expanded quickly, their variable supplies leave major gaps in the grid. Nuclear power, by contrast, offers unbroken, high-capacity output – something India will require in far greater quantity as it sets its target for net-zero by 2070.
Several realities are pushing the government toward nuclear reform:
Increasing baseload demand: With expanding industries and electrification of households, India needs a reliable non-fossil backbone.
Grid stability concerns: Beyond 2030, a renewable-heavy system will need a steady balancing source; nuclear fits that role.
Funding challenges: The massive build-out required for long-term energy security cannot be financed by NPCIL alone.
The SMR opportunity: Small Modular Reactors are the next big global technology wave. India wants early domestic manufacturing, and that calls for private sector engineering and capital.
A conclusion in government corridors is already there: Without private participation, India cannot scale nuclear power fast enough.
Breaking a 63-year state monopoly
The Atomic Energy Act, 1962 prohibits private and even state-level entities from constructing nuclear reactors. Only two public-sector organisations — NPCIL and BHAVINI — are permitted to build and operate nuclear plants. All 24 operational reactors in the country are under NPCIL’s control.
The proposed amendments would change this by redefining which “companies” can seek licences. Any firm registered under the Companies Act, 2013 could become eligible to:
build reactors,
operate nuclear power plants,
and participate in key stages of the nuclear energy cycle.
This puts India on a similar path to countries in which private operators-under strict oversight-play a central role in nuclear generation.
Fixing nuclear liability rules to invite investment
Another major obstacle is the CLNDA, 2010, which makes it possible to hold suppliers of nuclear equipment liable in case of an accident. It’s a clause few countries have in their laws. International practice places responsibility entirely on the operator.
Because of this, foreign firms have been reluctant to supply reactors or components.
The government now seeks to:
Bring the law into line with the Convention on Supplementary Compensation,
Reduce supplier-side risk.
and provide a coherent and predictable liability structure.
Presently, operator liability in India is capped at ₹1,500 crore, while the government covers damages beyond this amount. Any new amendments would bring these norms in line with international practices, thereby making India an attractive market for foreign reactor technologies, including SMRs.
Long-Term Goal for India: 100 GW of Nuclear Power
India currently produces 8.8 GW of electricity from nuclear reactors.
The government’s roadmap includes:
22.48 GW by 2031–32,
100 GW by 2047,
meaning an enormous expansion of reactor capacity over the next two decades.
Finance Minister Nirmala Sitharaman indicated this direction in her 2024–25 Budget when she said that India would collaborate with private companies in the following areas:
Bharat Small Reactors, and
Bharat Small Modular Reactors,
Along with advanced nuclear technologies for commercial use.
Why private companies are still cautious
Despite a favorable policy push, numerous companies view nuclear projects as too risky or commercially unattractive given the present circumstances.
Key concerns include:
A compulsory 60-paise-per-unit levy payable to NPCIL.
A lower ceiling on the plant load factor, despite Indian reactors being capable of 90–95% efficiency.
Lack of ownership of land, reactors, or operating licenses.
They require large expanses of land, over 300 hectares for a single reactor and its respective safety buffer zones.
Indeed, Reliance and ACME have already indicated that, absent revenue guarantees or other forms of government-backed financing, nuclear projects are hard to finance.
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What the winter session must decide
Two key decisions will shape the next phase of India’s nuclear story:
Passing the Atomic Energy Bill, 2025 – thus allowing private companies to enter reactor construction and operation.
Revising the CLNDA-updating liability rules to encourage foreign collaboration and supply-chain investment.
If these steps go through, India could see:
The rise of a competitive nuclear generation market
Faster deployment of SMRs,
Domestic manufacturing of reactor components.
New foreign partnerships, and
A faster route to non-fossil baseload electric generation.
Overview:
Opening up the nuclear sector marks arguably the boldest energy reform India has made in many decades. This is a reflection of a calculation that, without dramatic scaling of nuclear capacity, meeting the ambitious climate and power goals is impossible, but such scale requires private capital, global technology, and a modern regulatory framework.
The coming legislative session will decide how fast this transition unfolds — and how far India is willing to go to reshape the future of its energy system.
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