Govt Plans to Allow Private Firms to Mine and Import Uranium as it Targets Nuclear Power Expansion

The Indian government is planning to allow private firms to mine, import and process uranium to end a decades-old state monopoly over the nuclear sector and bring in billions of dollars to boost the industry, two government sources told Reuters.

The government plans to expand nuclear power production capacity by 12 times by 2047 and as part of its plans, it is also relaxing requirements to allow foreign players to take a minority stake in power plants, Reuters reported in April.

According to government estimates, if it meets its expansion goal, nuclear will provide 5% of India's total power needs.

Due to concerns over the possible misuse of nuclear material, radiation safety and strategic security, the government has maintained control over the mining, import and processing of uranium fuel until now. It will retain its control on reprocessing spent uranium fuel and managing plutonium waste, in line with global practice.

However, the two government sources told Reuters that the government plans to draw up a regulatory framework that would allow private Indian firms to mine, import and process uranium to help meet an increase in demand for nuclear fuel as it pushes nuclear power production.

The proposed policy, which the sources said was likely to be made public in the current fiscal year, will also permit private players to supply critical control system equipment for nuclear power plants, they said.

Domestic Uranium Reserves Fall Short

India has an estimated 76,000 tonnes of uranium enough to sustain 10,000 megawatts of nuclear power for 30 years, according to government data.

But domestic resources would only be able to meet about 25% of the projected increase. The rest would have to be imported and India would need to increase its processing capacity.

“It’s a major and bold initiative by the Indian Government which is critical for achieving the target,” Charudatta Palekar, independent power sector consultant told Reuters.

Allowing private companies to mine uranium could ease fuel shortages, spur innovation and unlock significant capital. Faster capacity scaling and less reliance on imports are promised by this change, but India's nuclear aspirations still depend on striking a balance between safety and strategic control.