(Times Now)
India is poised to allow foreign companies to acquire stakes of up to 49 per cent in its nuclear power plants, three senior government sources revealed, as part of a strategic plan to bolster clean energy capacity and reduce carbon emissions. The move—pending cabinet approval—comes as India urgently seeks to replace its coal dependency with sustainable energy sources, with a goal of expanding nuclear generation capacity twelvefold to 100 gigawatts by 2047.
The sources, who spoke to Reuters on condition of anonymity, explained that any foreign investment would still require prior government approval and would not be permitted automatically. The proposal, under consideration since 2023, reflects growing pressure to modernise India’s energy mix.
Currently, India’s nuclear energy sector is under strict government monopoly, producing just over 8 GW—roughly 2 per cent of its installed electricity capacity. Officials are finalising legal amendments to the Civil Liability for Nuclear Damage Act 2010 and the Atomic Energy Act 1960 to enable private and foreign participation. These changes are expected to be placed before the federal cabinet shortly, with a push to secure parliamentary approval during the monsoon session in July.
Historically, the sector has been closed to foreign investment due to liability concerns. After the 2008 India-United States Civil Nuclear Agreement, U.S. companies hesitated to engage deeply because of the possibility of unlimited liability in the event of nuclear accidents. The current proposals, including a reworking of nuclear liability laws, aim to remove those longstanding barriers.
“Investment in the sector has the potential to spur tariff negotiations with the United States,” one official said, though they clarified it was uncertain if any new framework would be tied directly to a broader trade deal.
International players such as Westinghouse Electric, GE-Hitachi, Électricité de France (EDF), and Rosatom have expressed interest in India’s nuclear projects as technology partners and service providers. Meanwhile, major Indian conglomerates—including Reliance Industries, Tata Power, Adani Power, and Vedanta Ltd—are reportedly in discussions to invest about USD 26 billion into the sector.
With India’s clean energy ambitions growing amid global pressure and domestic demand, atomic power could emerge as a crucial pillar alongside solar and wind—particularly to meet the high night-time electricity demand that renewables alone cannot satisfy reporting and official government briefings.
