India Moves to Open Civil Nuclear Sector to Private Investment

India is preparing to undertake one of its most significant energy-sector reforms since the enactment of the Atomic Energy Act, 1962, with the Government announcing its intent to open the civil nuclear power sector to private participation. This marks a major shift in the legal and institutional framework that has historically reserved nuclear power generation and related activities exclusively for the Central Government and the Nuclear Power Corporation of India Limited (NPCIL), which currently operates all reactors in the country.

As announced by the Prime Minister, the reform will be anchored in a new Atomic Energy Bill that is proposed to be introduced in the Winter Session of Parliament. The Government has also indicated that amendments to the Civil Liability for Nuclear Damage Act (CLNDA), 2010, will be considered to facilitate private-sector participation within an appropriate liability and safety framework.

Once enacted, the new legislation is expected to enable private entities to participate in India’s civil nuclear programme in a structured and regulated manner. A key focus of the Government’s announcement is the development and deployment of Small Modular Reactors (SMRs) and other advanced nuclear technologies, which are viewed as important for strengthening India’s clean-energy capacity and long-term energy security. The Government has already outlined plans for indigenous “Bharat SMRs,” and private participation is expected to play a role in advancing these technologies.

The reform aligns with India’s broader ambition to significantly expand its nuclear-power capacity in the coming decades as part of a diversified, low-carbon energy mix. It also reflects an effort to build deeper domestic research and development capabilities in advanced nuclear systems and to encourage technological innovation within the sector.

If enacted by Parliament, this legislative package would represent the most substantial modernisation of India’s civil nuclear framework in over sixty years, moving the sector toward a more innovation-driven and investment-ready structure while maintaining the central emphasis on safety, regulation, and sovereign oversight.