India's historic decision to open the nuclear sector to private players marks a fundamental reform aimed at transforming the atomic energy landscape.

This move, announced by Prime Minister Narendra Modi, breaks the six-decade-long government monopoly under the Atomic Energy Act, 1962, and allows private companies to participate in nuclear power generation, including the development and deployment of small modular reactors (SMRs) and advanced nuclear technologies.

The initiative is part of a broader strategy to enhance energy security, promote clean energy innovation, and support rising industrial power demand through private investment and technological advancements.

The reforms are embodied in the upcoming Atomic Energy Bill, 2025, which is set to be tabled in the Winter Session of Parliament. This bill will amend existing laws to enable private-sector participation, including provisions for private companies to mine, import, and process uranium, supply critical equipment, and even operate nuclear power plants.

Inclusive of opening the sector to public-private partnerships and potentially allowing minority foreign equity, these changes aim to accelerate capacity additions and inject global technology and investment into India's nuclear program.

The government's plan also includes the development of Bharat Small Reactors and other next-generation modular reactors, which are viewed globally as the future of scalable, flexible nuclear power. Such innovation will help India diversify its energy sources beyond coal, solar, and imported fuels, thereby strengthening energy security.

The reliance on private-sector investments is expected to speed up nuclear power deployment and propel India’s ambition to increase nuclear power capacity tenfold by the country's centenary of independence in 2047.

Opening the nuclear sector to private players parallels reforms in the space industry, where companies like Skyroot Aerospace have demonstrated the potential for rapid innovation and growth once private enterprise was allowed.

PM Modi’s announcement reflected this vision, highlighting the vast opportunities in nuclear innovations and the hope that private participation will spark similar breakthroughs as seen in the space domain.

In essence, this reform signals a strategic and economic shift to modernize India's nuclear energy sector through market liberalisation, enhanced innovation, and stronger energy self-reliance—integral to achieving long-term clean energy goals and positioning India as a global leader in advanced nuclear and space technologies.​

Agencies