India opens up to private (and foreign) investment for its nuclear power plants

The Indian government has approved the Shanti Bill: a reform set to change the nuclear sector, which has remained under public control for decades. New Delhi is betting on private capital, technology and new reactors to strengthen energy security and green transition. The goal is 100 gigawatts of nuclear energy by 2047 (compared to 8 today).

Milan (AsiaNews) - The Indian government is preparing to make a historic change to its nuclear policy, which has remained unchanged since the 1960s. In the last week of the winter session of Parliament, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India bill, known as the SHANTI Bill 2025, will be presented. Approved last week by the Council of Ministers, the bill aims to open up the civil nuclear energy sector to private participation for the first time, with the stated goal of reaching a capacity of 100 gigawatts by 2047.

The reform represents one of the most significant changes since the birth of post-colonial India. Until now, nuclear power generation and related activities have been effectively monopolised by public entities, in particular the Nuclear Power Corporation of India Limited, under the Atomic Energy Act of 1962. The new bill breaks this pattern and allows any company or joint venture (registered in India) to build, own, operate or decommission nuclear power plants and reactors.

The government's green light comes as New Delhi looks to nuclear power as a pillar of energy security and the transition to low-emission sources. During the meeting chaired by Prime Minister Narendra Modi, the Council gave the green light to a bill that aims to attract capital, technology and expertise by removing some of the key regulatory hurdles that have kept private investors away for decades. In her February budget speech, Finance Minister Nirmala Sitharaman had already announced her intention to open up the sector and launch a full-fledged national mission on nuclear energy.

One of the key issues addressed by the SHANTI Bill concerns the liability regime, previously regulated by the Civil Liability for Nuclear Damage Act, 2010. The bill establishes that the operator is liable for damage resulting from a nuclear accident, with some well-defined exceptions: cases of serious natural disasters of an exceptional nature, armed conflicts, hostilities, civil wars, insurrections or acts of terrorism are excluded. Certain damages involving nuclear installations under construction or other structures on the same site, as well as the means of transport of nuclear material at the time of the accident, are also excluded from liability.

The measure also expands the scope of activities permitted to private individuals: from the fuel cycle to the manufacture of components, from power generation to, potentially, plant management. On the international front, the text opens up the possibility of importing and exporting nuclear fuel, technologies and software related to the development and use of prescribed substances and equipment, as well as allowing foreign direct investment of up to 49 per cent in certain activities in the sector. This decision aims to facilitate the entry of technical knowledge and financial resources from abroad.

Alongside liberalisation, the bill provides for strengthened governance: a unified legal framework, updated safety standards and the establishment of a dedicated nuclear tribunal for dispute resolution. These measures are designed to reduce the risks perceived by investors and ensure greater legal certainty. Meanwhile, the government has announced an allocation of 20,000 crore rupees (just over 2 billion euro) for the Nuclear Energy Mission, focused on research and development of small modular reactors.

Today, India produces around 8 gigawatts of nuclear energy, representing only 1.6% of the total, highlighting the sector's great growth potential. If approved, the SHANTI bill aims to bridge this gap and create the conditions to reach the 100 gigawatt target by 2047, making nuclear power a pillar of economic growth, climate transition and national security.

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