India proposes nuclear law to end state monopoly, open doors for private operators

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India is taking significant steps to free its nuclear energy sector from government dominance. On Monday, legislation was introduced in Parliament that would permit private companies to construct and operate nuclear power plants, aligning with the government’s goal to position atomic energy as a key component of its clean energy strategy.

Foreign companies partnering with Indian firms could also apply for licenses if chosen by the government. Historically, India’s nuclear industry has been tightly controlled since the first reactor went online in 1969, influenced by Cold War geopolitics and restrictions following its 1974 nuclear test.

Currently, state-owned Nuclear Power Corporation of India Limited (NPCIL) manages and operates India’s nuclear reactors. Reuters reported last year that India was exploring investments from domestic private giants like Tata Power, Adani Power, and Reliance Industries, totaling around $26 billion.

The proposed bill, which needs approval from both legislative houses to become law, would enable “persons expressly permitted by the central government” to seek licenses to enter the nuclear field. This marks a major shift from previous decades when only state-backed entities could operate nuclear facilities.

India aims to increase its nuclear capacity to 100 gigawatts within the next twenty years — a substantial rise from the current 8.2 GW. The bill, named the Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India Act, 2025, eliminates a clause allowing operators to sue suppliers over defective equipment — a provision that foreign suppliers like General Electric, Westinghouse, and France’s EDF have opposed.

Liability rules are also being adjusted; the bill increases operator liability for large reactors to 30 billion rupees (approximately $330 million), maintains existing compensation caps, and introduces a nuclear liability fund to manage accident claims in line with international standards.

Private companies will also be permitted to import and process uranium. However, activities deemed strategic—such as uranium mining, enrichment, and fuel reprocessing—remain under government control, with licensing required for all operators.