Government is likely to allow foreign companies to take up to a 49% stake in Indian nuclear plants as it is working on amending the nuclear sector-related laws to allow private sector entry. The amendments to the Atomic Energy Act will allow the government to issue licenses to private companies to build, own and operate a plant and, mine and manufacture atomic fuel, Reuters reported, citing sources.
This comes at a time when the atomic energy department has said foreign nuclear sector companies, including Westinghouse Electric, GE-Hitachi, Electricite de France and Rosatom, have shown interest in India’s nuclear mission that allows public private partnership, according to Reuters. Indian companies like Reliance Industries, Tata Power, Adani Power and Vedanta too have reportedly held talks with the government to invest in the nuclear power sector.
These developments come at a time when the Indian government has announced opening the nuclear energy sector for the private companies in the last two budgets presented by the finance minister, Nirmala Sitharaman, in July last year and February 2025. As the sector has remained under the government for nearly six-seven decades, the move will end the state-owned entities' monopoly over the sector. It has set a target to increase the country’s nuclear capacity from 8180 MW as of January 2025 to 100 GW by 2047 and build at least five indigenously designed and operational Bharat Small Modular Reactors (SMRs) by 2033.
The government’s decision to open the sector aims to ramp up its efforts to tap into renewable energy sources other than wind, solar and hydro to meet India’s growing energy demand. Presently, nuclear energy’s contribution to the overall power production in the country is around 2.83%, according to the Central Electricity Authority (CEA) 2024 general review.
Speaking on the development, Union Minister of State for Science and Technology Jitendra Singh said the move is in accordance with global practices and will allow India to enhance its nuclear power capabilities while reducing dependency on public funds.
“The PM has decided to open up the nuclear sector to private players, ensuring a larger resource pool and faster development,” said the minister in the Parliament.
