India’s ambition to ramp up its nuclear power capacity with the help of private sector participation is facing procedural and legislative delays. This was made clear by Dr. Jitender Singh, Union Minister of State (Independent Charge), Department of Atomic Energy (DAE), during an interaction at the Rising Bharat Summit in New Delhi on April 9.

Amendments to Atomic Energy Laws Will Take Time

According to the minister, critical legislative changes—specifically amendments to the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act (CLNDA), 2010)—are prerequisites for allowing private firms to enter the highly sensitive nuclear energy space in India.

These amendments, however, are not expected anytime soon. Singh stated that “a specific timeline can’t be given” for when these amendments will be ready for Parliament. The reason? A comprehensive review process needs to be followed to ensure all risks, legal concerns, and stakeholder interests are addressed.

“We cannot be rushing through these laws. We have to understand the requirements, especially when we are talking about private investment in nuclear capacity and technology,” Singh emphasized.

Committees Formed for Legal Examination

To navigate this complex transformation, special committees have already been set up. These include members from the:

• Department of Atomic Energy (DAE)

• Atomic Energy Regulatory Board (AERB)

• NITI Aayog

• Ministry of Law and Justice

These expert bodies will work together to study the implications of private entry, draft necessary modifications, and ensure any new framework aligns with India’s energy and security interests.

In addition, consultations with industry stakeholders are also planned before the government takes any legislative steps.

Current and Future Nuclear Power Capacity

India’s existing nuclear power capacity stands at 8.8 gigawatts (GW). The government plans to expand this to:

• 22.48 GW by 2031-32, and

• 100 GW by 2047

This expansion will not be possible through public sector participation alone. The massive scale of investments, technological advancement, and global competitiveness required for such a leap makes private participation essential.

Budget Boost via National Nuclear Energy Mission

In a significant policy shift, the Union Budget 2025 announced the National Nuclear Energy Mission, which has been allotted an outlay of ₹20,000 crore.

The mission reflects the seriousness of India’s nuclear goals. However, this funding will primarily be utilized for infrastructure buildup, research, and strategic planning—pending the actual legislative go-ahead for private players.

Learning from Other Sectoral Models: IN-SPACe & Bio-RIDE

To frame a suitable policy environment for the nuclear sector, the government is exploring models from other industries that have already facilitated public-private collaboration. Two such examples include:

1. IN-SPACe (Indian National Space Promotion and Authorisation Centre):

Formed in June 2020, IN-SPACe acts as a nodal agency promoting and authorizing private space activities. It has enabled a surge in start-up involvement in India’s space journey, under ISRO’s umbrella.

2. Bio-RIDE (Biotech Research and Innovation Driven Entrepreneurship):

A scheme by the Department of Biotechnology (DBT), it supports research and entrepreneurship in biotechnology and builds bridges between academia, government, and industry.

Singh noted that a similar regulatory innovation could be the basis for encouraging private firms to enter the nuclear sector, once laws are updated.

Breaking the Nuclear Taboo

Dr. Singh described the push to bring private players into nuclear energy as a “brave move”. He noted that nuclear energy has always been surrounded by a "taboo" in India, primarily due to national security sensitivities, the risk of radiation, and lack of legal clarity.

He credited Prime Minister Narendra Modi for initiating this policy transformation and highlighted collaborations with major public sector undertakings (PSUs) like:

• NTPC (National Thermal Power Corporation)

• Indian Oil Corporation Ltd (IOCL)

These partnerships are helping lay the groundwork for wider private sector participation in the future.

Why Legal Reforms Are Crucial

Both the Atomic Energy Act, 1962 and CLNDA, 2010, were enacted at a time when nuclear energy was under complete government control. These laws:

• Prohibit private ownership or operation of nuclear facilities

• Set strict liability conditions for nuclear accidents

• Allocate full responsibility and accountability to government-run companies

Without amending these provisions, private investment will remain legally restricted, even if policy support exists.

Key Legal Challenges to Address

• Ownership Restrictions: The Atomic Energy Act currently mandates that only government agencies can own and operate nuclear plants.

• Liability Clauses: CLNDA imposes heavy liability on nuclear suppliers, which many private players see as a deterrent.

• Insurance Mechanism: There is no clear insurance architecture in place to protect private investors from potential nuclear accidents.

• International Compatibility: India must align its laws with global nuclear liability frameworks to ensure foreign technology providers are also willing to participate.

Stakeholder Consultations Will Be Crucial

Singh highlighted that before any changes are finalized, there will be broad-based industry consultations. This will include:

• Private power generation companies

• Nuclear technology providers

• Legal and insurance experts

• Public policy think tanks

These interactions will help fine-tune the scope of amendments and develop a workable legal model for private participation in India’s nuclear journey.

Conclusion: Ambition vs. Ground Realities

India's goal of reaching 100 GW nuclear capacity by 2047 is undeniably ambitious. But unless long-standing legal bottlenecks are addressed, the private sector’s involvement will remain a distant dream.

The government seems to recognize this and is taking cautious but steady steps. However, timelines remain undefined, and the legislative process could stretch beyond a year or more, especially given the technical complexity and strategic sensitivity of nuclear energy.

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