India is considering allowing foreign companies to own up to 49% of its nuclear power plants as part of a strategy to boost nuclear energy production and reduce coal dependency. This policy shift aims to attract foreign investment and support the transition to cleaner energy sources.

The government aims to raise nuclear capacity by 12 times to 100GW by 2047.

Discussions on revising foreign investment rules for the nuclear sector began in 2023. Nuclear power is viewed as a stable, low-emission alternative to coal, addressing India’s need for sustainable energy. Currently, nuclear energy contributes just over 8GW, or 2%, to India’s total electricity capacity of approximately 400GW.

The proposed changes include amendments to the Civil Liability for Nuclear Damage Act of 2010 and the Atomic Energy Act of 1960. These revisions would permit private entities, both domestic and foreign, to build, own, and operate nuclear facilities and engage in nuclear fuel production. The government plans to present these amendments to the federal cabinet soon, targeting approval during the monsoon session of parliament in July 2025.

Foreign investments will require government approval, ensuring oversight of the process. The reforms aim to address concerns about liability in case of accidents, which have previously deterred foreign companies. A 2008 nuclear agreement with the United States facilitated significant deals, but strict liability rules limited investments.

The government has set a goal to increase nuclear capacity to 100GW by 2047, a twelvefold expansion. This aligns with India’s broader energy objectives, complementing renewable sources like wind and solar, especially during peak evening demand. Several international firms, including Westinghouse Electric, GE-Hitachi, Electricité de France, and Rosatom, have shown interest in India’s nuclear projects. Additionally, Indian companies such as Reliance Industries, Tata Power, Adani Power, and Vedanta are exploring investments worth approximately $26 billion in the sector.

An official involved in the discussions stated: “The proposed changes will create new opportunities for both domestic and foreign players, supporting India’s long-term energy goals.” The reforms are expected to encourage private sector participation, addressing barriers to nuclear energy expansion.