The Government of India (GoI) has laid out an ambitious blueprint for the civil nuclear energy sector by announcing its vision to achieve 100 GW of nuclear power capacity by 2047, up from the current 8.8 GW. The strategy marks a significant policy shift with plans to develop Small Modular Reactors (SMRs), backed by a dedicated ₹20,000 crore research and development fund.

The government aims to build at least five SMRs by 2033, signalling a strong commitment to diversifying India’s clean energy base while meeting rising power demands and energy security concerns.

India’s energy requirement is projected to increase to 708 GW by 2047, far outpacing the contribution of renewables alone. Despite impressive progress—242 GW of non-fossil-based capacity already installed, making India the third-largest solar power generator globally—nuclear energy remains essential as a stable, base-load power source, especially amid growing geopolitical uncertainties and supply-chain vulnerabilities. Nuclear power offers India a strategic opportunity to secure long-term energy independence and strengthen its low-carbon trajectory.

A central challenge, however, lies in legislative and policy reforms. The Atomic Energy Act, 1962 restricts ownership and operation of nuclear power plants solely to the Government of India or government-controlled companies like NPCIL and NTPC.

Similarly, the Civil Liability for Nuclear Damage (CLND) Act, 2010 places stringent liability norms deterring foreign investment, while the FDI Policy expressly prohibits foreign equity participation in nuclear energy.

To open the sector to meaningful private and foreign participation, India must amend its Atomic Energy Act to permit private companies in reactor ownership, construction, and operation, while ensuring a balanced liability framework to attract global reactor suppliers and technology leaders.

Enabling private participation will also demand changes to India’s FDI rules to allow foreign companies such as GE, Hitachi, and Rolls Royce to bring capital, expertise, and advanced nuclear reactor technologies.

Without such reforms, progress toward large-scale adoption of SMRs and advanced nuclear plants will remain constrained. A carefully designed policy framework, therefore, should ensure public-private partnerships with robust regulation, safety guarantees, and liability-sharing mechanisms, balancing public interest with investor confidence.

The government’s next steps—amending core legislations, liberalizing FDI norms, and establishing clear structures for risk management—will determine India’s success in aligning nuclear energy with its broader vision of a secure, affordable, and carbon-neutral energy future. The move carries immense potential not only to strengthen India’s energy mix but also to position it as a global leader in next-generation nuclear technology deployment.

Based On Money Control Report