India plans to set new nuclear regulator amid the entry of private sector

Amendments to the Atomic Energy Act are in progress to enable private sector involvement in nuclear energy sector, with strict oversight on the import, use, and disposal of nuclear fuel

India may soon set up a new authority to keep a close watch on the supply and waste management of nuclear fuel, according to top government officials. The aim is to stop any misuse or illegal diversion of nuclear materials. 

 

According to a report by The Economic Times, the government is discussing strong new rules as it prepares to make changes to the Atomic Energy Act. These changes could also allow private companies to enter the nuclear energy sector.

 

 “The idea is to have stringent oversight,” a senior government official told The Economic Times.

 

The proposed regulator would monitor everything from the import of nuclear fuel to its use and final disposal. No fuel enrichment facilities would be allowed at private plants, helping the government maintain full control over the nuclear supply chain.

 

 

These safeguards would be in line with global best practices and were needed in view of the risks of diversion of fuel, the official said.

 

Clearances tied to safety mandate

 

The design of all nuclear plants would also need to be cleared by the Atomic Energy Regulatory Board (AERB), which would check for safety and ensure rules are followed, the official added.

 

A final decision on the law changes will be made soon. The government is working expeditiously on changes to the law, the official said.

 

Finance Minister Nirmala Sitharaman had announced plans to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act in her recent budget. Following this, committees with senior officials have been formed to work on the details. 

India’s current nuclear capacity

 

As of January 30, 2025, India operates 24 nuclear reactors with a total installed capacity of 8,180 megawatts (MW). Nuclear power contributes approximately 3 per cent to India’s total electricity generation.

 

The country plans to increase power generation to 40 GW by 2035. To meet its clean energy goals, the country is looking to build small modular reactors through public-private partnerships. India wants to reach net-zero carbon emissions by 2070.

Small Modular Reactors 

 

India is focusing on the development of Small Modular Reactors (SMRs) to enhance its nuclear capabilities. The government plans to operationalise at least five indigenously developed SMRs by 2033, according to a report by the World Nuclear News. These reactors offer simpler designs and scalability compared to traditional nuclear plants. 

 

Furthermore, to facilitate private investment, the government has proposed amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. These changes aim to create a more conducive environment for investment and innovation in the nuclear sector.