India is set to end its decades-old state monopoly in the nuclear sector by allowing private companies to mine, import, and process uranium—a move that marks a historic shift in the country’s energy policy. This strategic decision, aimed at attracting billions of dollars in investment, is a key part of the government’s plan to boost nuclear power production by twelve times by 2047, which would allow nuclear energy to contribute about 5% of India’s total electricity generation.

Currently, only state-owned entities have the authority to carry out uranium-related activities in India. Under the new policy, private Indian companies will be permitted to explore, mine, and import uranium, as well as build processing facilities to refine the mineral for use in nuclear power plants. This is expected to significantly increase fuel supply for upcoming nuclear reactors and reduce India’s dependence on a limited domestic resource base.

Domestic uranium reserves, estimated at 76,000 tonnes, are expected to meet only about 25% of the fuel demand from the planned nuclear expansion. This shortfall means that uranium imports will become a vital component of India’s nuclear growth strategy. To meet this demand, the government will create a regulatory framework allowing private sector participation while maintaining strict control over sensitive processes, such as the reprocessing of spent uranium fuel and plutonium waste management—in line with global nuclear safety practices.

The proposed reforms will also allow foreign players to hold minority stakes in nuclear power plants in partnership with Indian companies. This could open the door for advanced nuclear technology collaboration, helping India accelerate construction timelines and adopt the latest safety systems. The policy is expected to be made public in FY26, following amendments to laws governing mining, nuclear regulation, and foreign direct investment.

Private firms may also be allowed to manufacture and supply critical nuclear control system equipment, further boosting the domestic industrial ecosystem for nuclear infrastructure. By involving the private sector, India aims to speed up the deployment of nuclear power capacity, reduce reliance on fossil fuels, and move closer to its climate commitments under the Paris Agreement.

The government’s ambition to expand nuclear power capacity by 12 times is not just about meeting electricity demand—it is also a strategic energy security measure. By diversifying its energy mix, India can reduce dependence on imported coal and gas, while ensuring a stable supply of low-carbon energy for decades to come.

Internationally, countries like Canada, South Africa, and the United States already allow private companies to mine and process uranium. India’s adoption of a similar model is expected to spur investment from both domestic and global players, enabling the creation of a robust supply chain for nuclear fuel and related equipment.

While implementing these reforms will require complex legal amendments and strong regulatory oversight, the government has shown determination to define clear rules for private sector engagement in this highly sensitive industry. The balance between economic opportunity, safety, and non-proliferation obligations will be critical to the success of this initiative.

If executed well, this bold reform could transform India’s nuclear sector, providing a steady flow of clean energy, strengthening the country’s energy independence, and positioning it as a key player in the global nuclear energy market.

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