In nuclear energy push, Govt to allow private operators, limit their liability

By | May 19, 2025

India is gearing up for a major transformation in its nuclear energy sector. The government plans to allow private companies to operate nuclear power projects for the first time. It also aims to limit their liability in case of accidents. This reform could speed up clean energy development and attract more investment.

Why This Move Is Important

Until now, India’s nuclear industry has been under strict government control. State-owned companies like the Nuclear Power Corporation of India Limited (NPCIL) manage all nuclear plants. This model ensured safety and national oversight. However, it also slowed down growth.

To meet growing electricity demand and reduce carbon emissions, India must expand its energy sources. Nuclear energy, which is clean and reliable, plays a key role in this plan. The government now wants to raise nuclear power capacity from 9 GW to 100 GW by 2047.

Key Legal Changes on the Horizon

The government plans to amend two laws:

  • Atomic Energy Act, 1962: This act restricts nuclear operations to government agencies.
  • Civil Liability for Nuclear Damage Act, 2010: This law makes suppliers responsible for damages in case of a nuclear accident.

These rules have discouraged both Indian and foreign companies. Many fear unlimited liability and complex regulations. The upcoming changes will open the sector to private companies and ease supplier liability. This move will align Indian law with global norms.

What’s Driving This Reform?

India’s energy needs are growing fast. As more cities develop and industries expand, power demand continues to rise. Renewable sources like solar and wind are growing too, but they depend on weather conditions. Nuclear energy offers a steady, long-term power solution.

India also aims to reach net-zero carbon emissions by 2070. Expanding nuclear energy is critical for hitting that target. The government wants to attract private and foreign investors to help build new plants and improve infrastructure.

Who Will Benefit?

Several major Indian companies may invest in nuclear power:

  • Tata Power
  • Reliance Industries
  • Adani Group
  • Vedanta

These companies are already exploring partnerships and planning investments worth billions.

Global companies are also watching closely. Firms like GE-Hitachi, Westinghouse, EDF, and Rosatom may enter the Indian market. With lower legal risks, they’ll feel more confident to bring in their technologies and capital.

Consumers could benefit too. A more competitive and well-funded energy sector may lead to lower electricity costs and fewer blackouts in the long run.

Safety Will Still Come First

Some critics worry about reducing supplier liability. They fear it could lead to lower safety standards or shift costs to taxpayers. However, the government plans to keep strong oversight in place.

Regulators like the Atomic Energy Regulatory Board (AERB) will continue to enforce strict safety norms. Private operators will need to meet high standards to get and keep their licenses.

What’s Next?

The government is expected to present the proposed amendments in the Monsoon Session of Parliament in July 2025. If lawmakers approve them, India will open its nuclear energy sector to private players for the first time.

This change won’t happen overnight. Building nuclear plants takes years and costs billions. Still, the reform sets the stage for long-term growth. Private capital, advanced technology, and global partnerships will drive the next phase of India’s energy journey.

Conclusion

India’s move to involve private companies in nuclear energy marks a historic shift. With legal changes on the way, the country could become a global leader in clean and safe nuclear power.

By opening the doors to private investment and easing liability concerns, India is taking bold steps toward a greener future. If done right, this reform could ensure energy security, attract foreign interest, and cut carbon emissions—making it a win for everyone.