India is preparing a significant shift in its civil nuclear sector policy, aiming to address the longstanding concerns of the private sector regarding investments, particularly related to liability and legislative frameworks.

Union Minister Jitendra Singh recently affirmed that legislative changes are being actively considered, following commitments made in the Union Budget, to amend crucial laws—the Atomic Energy Act and the Civil Liability for Nuclear Damage Act—to facilitate private sector involvement in nuclear power.

At present, the sector is under strict state control, with only entities like NPCIL, BHAVINI, and the NPCIL-NTPC joint venture (ASHVINI) permitted to construct nuclear power plants.

Private companies, especially foreign suppliers, have been hesitant to invest due to apprehensions about India’s nuclear liability regime, which currently exposes suppliers and investors to uncertainties around compensation claims in the event of nuclear incidents. 

To address this, proposed legislative amendments will more clearly delineate the chain of responsibility and the insurance pool’s role in managing compensation after an incident, giving priority to the operator and protecting suppliers from unlimited liability within defined limits.

India is also a signatory to the International Atomic Energy Agency’s Convention of Supplementary Compensation for Nuclear Damage, aligning its liability regime with international practices.

Singh emphasised that opening up the nuclear sector is vital for India’s aspiration to become a developed nation by 2047 and meet targets such as achieving 100 GW of nuclear power capacity by 2047.

This ambition will require a move away from historical secrecy and siloed operations toward a more globally integrated approach, including private and international collaboration. The administration also highlights the importance of advanced technologies such as Small Modular Reactors (SMRs) and is pursuing R&D in this area, recognizing that public-private partnerships will be essential for rapid deployment and innovation.

The government has acknowledged the complexity of this transition, describing the legislative overhaul of the nuclear sector as more challenging than previous space sector reforms, but credits Prime Minister Narendra Modi’s personal leadership for driving this change. 

India’s government is committed to resolving private sector concerns and creating a more inviting framework for investment in civil nuclear energy, foundational to the nation’s energy security and global competitiveness.

Based On A PTI Report