Nuclear energy can help power India's economic growth, private push welcome

The Union government’s plans to end decades-long state monopoly over uranium mining, import, processing, and nuclear-power generation, opening the door for private firms to participate, mark a significant shift in the sector. The policy shift, first signalled in the Union Budget, builds on the country’s ambitious goal of scaling up nuclear power capacity to 100 gigawatts (Gw) by 2047. Accordingly, Union Finance Minister Nirmala Sitharaman had announced a Nuclear Energy Mission with an allocation of ₹20,000 crore, aimed at raising nuclear-power capacity from the current 8.18 Gw. These recent developments mark a belated but necessary recognition of nuclear energy’s role in addressing climate imperatives, diversifying the energy mix and reducing the country’s overwhelming dependence on fossil fuels. 

For decades, state control was justified by concerns over radiation safety, misuse of nuclear material, and strategic security. Nuclear Power Corporation of India Ltd (NPCIL) was the sole operator of civilian nuclear plants. However, the growing urgency of India’s energy transition is making the policy adapt. Domestic uranium reserves — of about 76,000 tonnes — can meet only a fraction of future demand, making import and expanded processing capacity essential. In this respect, private participation will be vital to build supply chains, mobilise capital, and speed up project execution. 

To operationalise this, the government will have to undertake legal changes. Amendments to the Atomic Energy Act are necessary to end NPCIL’s monopoly and allow private players into generation. Equally crucial are changes to the Civil Liability for Nuclear Damage Act. The current supplier-liability provisions have deterred global nuclear firms since the Indo-US nuclear deal. Any reform must balance the need for fair compensation in the case of accidents with creating a framework that does not discourage investment or technology transfer. India aims to operationalise at least five indigenously designed Small Modular Reactors (SMRs) by 2033. At the same time, Bharat Small Reactors (BSRs), which are essentially 220-megawatt pressurised heavy-water reactors, are being upgraded to reduce land requirements, making them highly suitable for deployment near industries as captive power plants to aid in decarbonisation. SMRs and BSRs combined can complement renewable energy by extending access to regions unsuited to conventional large plants. 

Nuclear projects are often vulnerable to cost overruns, licensing bottlenecks, and grid-pricing disputes. Moreover, they demand substantial upfront capital and are characterised by long gestation periods, with operational lifespans often exceeding six decades. For private players eyeing India’s burgeoning nuclear energy, there is thus a need to adopt innovative financing structures tailored to the long-term nature of nuclear assets. To derisk investment, the government can also consider mechanisms such as viability-gap funding and sovereign guarantees. In the light of past opposition at sites like Jaitapur and Kudankulam, and possibilities of renewed public fear arising from private participation, there is a need to engage with communities and ensure environmental care and fair compensation.