What you need to know about changes proposed in India’s civil nuclear power law

India has proposed a new law that would end nearly six decades of state monopoly over nuclear power generation and allow private companies and individuals to build and operate nuclear reactors.

The proposed legislation will require approval from both the Lok Sabha and the Rajya Sabha to become law.

Below is a breakdown of what the proposed civil nuclear law seeks to change and why it matters.

What is the current regulation around civil nuclear power?

Since 1962, nuclear power projects in India have been restricted to firms operating under the Department of Atomic Energy, primarily the Nuclear Power Corporation of India Ltd (NPCIL).

A 2015 amendment permitted other state-owned companies to form joint ventures with NPCIL to develop nuclear power plants.

Following this change, NPCIL entered into partnerships with three public sector companies — NTPC, Indian Oil Corporation (IOC) and National Aluminium Company (NALCO).

However, none of these joint ventures completed their proposed nuclear projects.

What are the proposed changes?

The proposed legislation, titled the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025, seeks to end the government’s monopoly on nuclear power generation.

Under the bill, private players will be allowed to fully own and operate nuclear power plants.

Certain sensitive activities, including fuel enrichment, spent-fuel reprocessing and heavy water production, will continue to remain under government control.

Why is this a significant development?

India aims to expand its nuclear power capacity to 100 gigawatts over the next 20 years, from the current level of 8.2 gigawatts, as part of its clean energy strategy.

The proposed law could attract billions of dollars in investment from private companies such as Tata Power, Adani Power and Reliance Industries, all of which have announced plans to invest in nuclear energy.

Private companies will also be allowed to import and process uranium.

In addition, foreign firms will be permitted to partner with Indian companies.

What does the bill say about foreign participation?

Global nuclear suppliers — including Westinghouse Electric and GE-Hitachi from the United States, France’s EDF, and Russia’s Rosatom — have expressed interest in supplying technology and equipment for nuclear projects in India.

The bill allows foreign direct investment through joint ventures with Indian companies.

How has the bill eased liability laws?

The proposed legislation removes a provision that allowed nuclear plant operators to sue equipment suppliers over defects.

This clause had been a key concern for foreign vendors.

By removing this provision, the bill reduces legal risks, enables insurance coverage for suppliers, and is expected to encourage global technology providers and investors to participate in India’s nuclear sector.

What safeguards are included?

Nuclear plant operators will be required to obtain government licences and safety approvals from the Atomic Energy Regulatory Board.

Foreign-controlled firms will not be eligible to hold operating licences.

Operators will also be required to set aside liability funds ranging from $10.99 million to $330 million, depending on the size of the reactor.

What happens in the event of a nuclear accident?

In the event of an accident, compensation will be paid from the operator’s insurance-backed liability fund.

The total liability is capped at 300 million Special Drawing Rights, an International Monetary Fund reserve unit, in line with international norms.

(With inputs from Reuters)