India has released draft regulations that would, for the first time, allow private and foreign companies to build and operate nuclear power reactors on Indian soil, marking a historic shift for a sector that has remained under strict state control since the country’s independence.
The draft rules and regulations, circulated by the Department of Atomic Energy on Friday for public consultation, offer the clearest picture yet of how New Delhi intends to open its tightly guarded nuclear sector to outside participation. Under the proposed framework, companies would first secure approval in principle to engage vendors, undertake preliminary development work and secure land before obtaining a formal licence. Once licensed, nuclear projects would face stage-by-stage regulatory scrutiny covering design, siting, construction, commissioning and operation, with regulators empowered to halt work at critical milestones.
Liability Cap Clears Path for Global Vendors
Among the most significant changes is a cap on liability for nuclear equipment suppliers in the event of accidents, a longstanding barrier that has kept major international vendors out of the Indian market for decades. The previous unlimited liability framework, enacted after the 2008 civil nuclear deal with the United States, was widely blamed for deterring foreign investment despite the legal opening. The new cap is specifically aimed at reviving interest from companies including General Electric, Westinghouse Electric and EDF, all of which have struggled to enter India under the old rules.
Foreign reactor designs with proven overseas operating records would be eligible under the new rules, requiring developers to submit licensing and operating experience from their home markets. Developers would also be required to maintain financial security for nuclear liability, decommissioning and waste-management obligations, and to submit detailed plans for the management of radioactive waste throughout a project’s lifetime.
India Targets 100 GW of Nuclear Capacity by 2047
The world’s third-largest greenhouse gas emitter aims to expand nuclear generation capacity 12-fold to 100 gigawatts over the next two decades, making private investment and foreign technology critical to meeting those ambitions. India currently operates 22 nuclear reactors with a combined capacity of roughly 7.5 GW, all run by the state-owned Nuclear Power Corporation of India.
India has also announced plans to develop at least five indigenous small modular reactors by 2033 as part of a broader Nuclear Energy Mission. Prime Minister Narendra Modi flagged energy security and critical minerals as key national priorities during his Independence Day address on Friday, while the government has invited domestic private conglomerates including Adani Green, Tata Power and Reliance Industries to invest in nuclear power projects.
The draft regulations represent the most concrete step yet in India’s decades-long effort to reform its nuclear sector. If implemented, they could attract billions in foreign investment and position India as a major growth market for the global nuclear industry at a time when many developed nations are struggling to build new reactors on time and on budget.
Sources: Reuters; Business Standard; Business Recorder
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