India’s ambitious plan to expand nuclear power to 100 GW by 2047 is facing uncertainty as new draft rules impose stricter approval requirements on foreign reactor technology, potentially slowing investment and limiting access to advanced designs, Reuters reported.

Industry experts warn that this could blunt India’s nuclear reform and stall deployment of small modular reactors (SMRs), a technology seen as vital for rapid decarbonisation.

India’s new draft nuclear framework has raised concerns among both domestic and foreign stakeholders. The rules require imported reactors to have operational and licensing certifications from their country of origin, alongside separate design approval from India’s atomic energy regulator before construction can begin.

This dual requirement could significantly extend approval timelines compared to earlier processes, where site and construction approvals could proceed concurrently while design clearance was awaited.

The framework follows the passage of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act in 2025, which opened the nuclear sector to private participation. 

India is counting on nearly $210 billion in investments to raise nuclear capacity almost tenfold to 100 GW over the next two decades. Coal currently supplies most of India’s electricity, making nuclear expansion a cornerstone of its clean energy transition.

NPCIL, the country’s sole nuclear operator, is already executing a 14-GW expansion program through 2032. However, meeting the 100-GW target will require private capital and new reactor technologies. 

Indian conglomerates such as TATA Power, Adani Power, and Reliance Industries, along with foreign firms including Russia’s ROSATOM, France’s EDF, and U.S.-based GE Hitachi, have engaged in talks with the government. Yet, many are withholding investment commitments until the final rules are published. Companies have until 4 September to provide feedback.

Legal experts such as Suhaan Mukerji of PLR Chambers argue that the draft rules risk undermining the promise of the nuclear act by discriminating against foreign technology. He warned that SMRs, which India has identified as promising due to their smaller size and lower upfront costs, could be “dead in the water” under the proposed framework. Most SMR designs are only beginning commercial deployment globally, meaning they may not qualify under India’s rules.

Government officials involved in drafting the framework insist that the measures prioritise safety and align with international regulatory practices.

The rules also introduce a composite licence covering construction, operation, and decommissioning, alongside financial safeguards such as mandatory insurance against nuclear damage. However, industry executives caution that India risks losing access to newer technologies if it adopts an approach better suited to mature nuclear markets.

Another major concern is the absence of binding timelines for design approvals, which could delay project development. Shri Venkatesh of SKV law firm noted that without clear deadlines, developers face uncertainty that hampers financing decisions.

The draft also omits key commercial details, including tariff determination, expected returns, and minimum qualifications for operators. Earlier internal drafts reportedly contained more specifics, but these were excluded from the public consultation version.

Executives from both Indian and foreign companies have repeatedly sought clarity on issues such as fuel tie-ups, reprocessing, and exclusion-zone requirements. The lack of detail raises fears that investment decisions will be delayed, jeopardising India’s nuclear expansion goals. The rules are expected to be finalised within three months after consultation.

India’s nuclear ambitions remain vast, but unless the framework balances safety with investor confidence and technological openness, the country risks slowing its progress toward becoming a leader in the global nuclear renaissance.

Agencies