Nuclear power sector to open for private players soon, says PM Modi

PM Modi's remarks come ahead of Parliament's winter session, where the Centre has listed the 'Atomic Energy Bill, 2025', which seeks to open up India's civil nuclear power sector to private players

Prime Minister Narendra Modi on Thursday said the government is preparing to open up India’s hitherto tightly regulated nuclear power sector to private participation in an attempt to further strengthen the country's energy security.

 

“We are moving towards opening the nuclear sector as well. We are laying the foundation for a strong role for the private sector in this field too,” PM Modi said in a video address during the inauguration of Skyroot Aerospace’s Infinity campus in Hyderabad.

 

He added that the reform will create opportunities in small modular reactors, advanced reactors and nuclear innovation, and will provide new strength to India's energy security and technological leadership.

 

The Prime Minister's comments come ahead of Parliament’s winter session, where the government has listed the ‘Atomic Energy Bill, 2025’ that seeks to allow private players into India's civil nuclear sector. 

 

Why does opening the nuclear sector matter?

Currently, India’s nuclear energy base remains modest, with 23 reactors run solely by the state-owned Nuclear Power Corporation of India Ltd (NPCIL), with an installed capacity of just 8.8 GW. However, it has set a target of achieving 22 GW capacity by 2032 and 100 GW by 2047. Against this backdrop, the Centre’s plans to allow private companies into the civil nuclear sector could help the country move closer to its targets. 

While presenting the Budget earlier this year, Finance Minister Nirmala Sitharaman had also announced plans to amend the Civil Liability for Nuclear Damage Act, reported PTI. India signed a historic civil nuclear agreement with the United States in 2008, but private firms have been hesitant since then, both because of the risk of unlimited exposure in the event of any accident as well as the fact that no foreign investment was allowed in India's nuclear plants.

 

As part of its efforts to attract private investment into the nuclear energy sector, the government is also reported to be considering allowing private firms to mine, import and process uranium, until now restricted to state-owned companies. India has already secured uranium supplies for the next five years via a government-to-government (G2G) deal with Kazakhstan. India has an estimated 76,000 tonnes of uranium, enough to fuel 10,000 megawatts of nuclear power for 30 years, according to government data, Reuters reported earlier this year. However, domestic resources will be able to meet only about 25 per cent of the projected increase in nuclear power. The rest will have to be imported, necessitating an increase in the country's processing capacity.

 

 

What hurdles could delay private entry into nuclear power?

Efforts to bring private players into the nuclear sector are not new. In March 2024, state-owned NPCIL issued a tender for a stepped-down version of its indigenously developed nuclear reactors — the first such call for private sector participation in small nuclear reactors in India. However, the process has faced multiple delays due to a significant gap between NPCIL and prospective bidders on key terms, according to a Business Standard report from October 2025. 

The report added that an initial March 2024 request for proposal (RFP) gave a year for companies to respond, but in January and February 2025, the last date for receiving queries was changed thrice.

 

In February, the due date for receiving bids was extended by a month to April 2025, pushed forward by two months, further extended to September 30, and then to March 2026, the report said, citing an NPCIL document.

 

The latest delay came after bidders like Tata Power, Reliance Industries and Adani Energy raised several queries relating to ownership, charges and operations, which threaten to make the projects unviable.