Current Nuclear Energy Landscape

India presently operates 25 nuclear reactors across seven power stations, with an installed capacity of 8,880 MW, contributing nearly 3% of total electricity generation (FY 2024–25).

India aims to expand capacity to 22.5 GW by 2031-32 and reach 100 GW by 2047, aligning with Net Zero commitments.

Most reactors are indigenous Pressurised Heavy Water Reactors (PHWRs), with a few imported Light Water Reactors (LWRs) under international agreements.

India imports over 80% uranium from Kazakhstan, alongside supplies from Russia, Uzbekistan, Canada and Australia. Domestic reserves are estimated at 4.25 lakh tonnes, primarily mined in Jharkhand and Andhra Pradesh.

Legal and Policy Framework

• Atomic Energy Act, 1962: Restricts nuclear power generation to Government and PSUs such as NPCIL.
• Civil Liability for Nuclear Damage Act (CLNDA), 2010: Establishes supplier liability, a key issue post the India-US Nuclear Deal.
• Safety Oversight: The Atomic Energy Regulatory Board (AERB) ensures regulatory compliance.
• India follows a closed fuel-cycle policy, enabling reprocessing of spent fuel to reduce waste.

Why Private Participation Matters

Private sector entry is expected to:

• Mobilise investment to bridge an estimated $26 billion funding deficit.
• Improve project timelines through a Fleet Mode construction strategy.
• Accelerate deployment of Small Modular Reactors (SMRs).
• Expand high-precision manufacturing for reactor-grade equipment.
• Reduce tariffs to ₹4–5/unit via improved efficiency and competition.

Challenges Ahead

Key barriers remain:

• Unlimited supplier liability under Section 17(b) of CLNDA hinders global OEM participation.
• Nuclear power’s exclusion from the Green Taxonomy limits access to low-cost financing.
• High generation cost (₹6–8/unit) discourages long-term purchase agreements.
• Land acquisition challenges and public opposition delay projects.
• Current rules restrict private firms to construction roles, blocking Build-Own-Operate participation.

Recent Government Measures

• Proposed amendments to the Atomic Energy Act, 1962 to permit private ownership of civilian nuclear plants.
• Planned revision of CLNDA (2010) to align with global conventions.
• Launch of Nuclear Energy Mission for Viksit Bharat with ₹20,000 crore funding for SMRs and advanced systems.
• Development of new PPP frameworks, where private firms may provide capital and infrastructure, while NPCIL oversees operations.

Conclusion

Opening India’s civil nuclear sector to private participation represents a strategic shift aligned with energy security, climate goals, and industrial growth. While legal, financial and public acceptance challenges persist, reforms and technological innovation—especially SMRs—may position India as a major nuclear energy hub by 2047.