PM Modi Announces Plans to Open Up Nuclear Power Sector to Private Players

Prime Minister Narendra Modi on Thursday said the government is considering opening up India’s tightly regulated nuclear power sector to private companies to strengthen the country’s energy security.

“We are moving towards opening the nuclear sector as well. We are laying the foundation for a strong role for the private sector in this field too,” Modi said at the inauguration of Skyroot Aerospace’s Infinity campus in Hyderabad.

The move is expected to create opportunities in small modular reactors (SMRs), advanced reactor technologies, and nuclear innovation, as India looks to diversify clean-energy sources. The announcement comes days ahead of the Parliament’s Winter Session, where the Atomic Energy Bill 2025 will be tabled to enable private participation in the civil nuclear ecosystem.

Nuclear Sector May Soon Be Powered by Private Investment

India’s nuclear capacity remains modest, with 23 reactors operated solely by the state-owned NPCIL, generating 8.8 GW. NPCIL aims to expand capacity to 22 GW by 2032 and 100 GW by 2047, India’s independence centenary. Allowing private entities into the sector is expected to accelerate project development and financing.

G2G Deal With Kazakhstan

As part of broader plans to attract investment, the government may allow private firms to mine, import, and process uranium, previously restricted to state agencies. India has already secured a five-year uranium supply agreement with Kazakhstan through a government-to-government deal, according to Business Standard.

Civil Liability Amendment in Focus

Finance Minister Nirmala Sitharaman in the last Union Budget signalled amendments to the Civil Liability for Nuclear Damage Act, a major hurdle discouraging private and foreign players due to risk of unlimited liability. Despite India’s landmark 2008 civil nuclear deal with the US, private sector participation has remained limited.

Challenges Ahead

In March 2024, NPCIL floated a tender for a smaller version of its indigenously developed reactors, but deadlines were repeatedly extended due to disagreements with bidders over ownership and operational terms. Prospective bidders including Tata Power, Reliance Industries, and Adani Energy raised concerns about viability, pushing the latest deadline to March 2026, the report said.