Cabinet nod for bill to open up civil nuclear power for private players

NEW DELHI: The Union cabinet on Friday approved a bill which seeks to open the highly restricted nuclear power sector to private companies and also crucial for the country’s goal of achieving 100 gigawatt nuclear power capacity by 2047.The approval of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, paves the way for its introduction in the ongoing winter session of Parliament.Officials said the Bill proposes amending the civil liability law to shield plant operators and cap equipment suppliers’ liability, along with redesigning operator insurance to ₹1,500 crore per incident under the Indian Nuclear Insurance Pool.The Bill proposes allowing up to 49% foreign direct investment in the sector and creating a unified legal framework for atomic energy, including a specialised nuclear tribunal for all nuclear-related disputes. Private-sector entry will be governed by clear rules under govt oversight, while the Department of Atomic Energy will retain control over core functions such as nuclear material production, heavy water, and waste management.

Finance minister Nirmala Sitharaman had announced the govt’s intent to open the nuclear power sector to private participation in her Feb budget speech. She had also unveiled a Nuclear Energy Mission with Rs 20,000 crore for R&D on small modular reactors (SMRs), and a plan to operationalise five indigenously developed SMRs by 2033.Prime Minister Narendra Modi had indicated last month that govt was preparing to open the nuclear sector to private players, on the lines of the space sector.The Atomic Energy Act currently bars private entities and even state govts from operating nuclear power plants. Only the central govt and its entities can run them. The Nuclear Power Corporation of India Limited (NPCIL), a PSU under the Department of Atomic Energy, is the sole operator and currently runs all 24 commercial reactors in the country.Officials said the SHANTI Bill aims to address long-standing concerns across the nuclear energy chain — from private-sector participation and liability issues to fuel supply, spent fuel management, and dispute resolution.

They pointed to rising domestic energy demand, the growth of data centres, and India’s 2070 net-zero target as factors driving renewed global interest in nuclear power.The interest is supported by advancements in technologies such as SMRs and the latest generation of safer large reactors. With India expecting a sharp rise in energy demand as it targets developed-economy status by 2047, nuclear power is seen as a critical component of the future energy mix.Officials added that scaling nuclear capacity ten-fold in the next two decades will require private-sector involvement, as the public sector alone cannot meet this ambition. SMRs, in particular, are suited for captive use in energy-intensive industries like steel and cement, as well as data centres.Anujesh Dwivedi, partner at Deloitte India, said it was critical to align civil nuclear liability for operators and suppliers with international standards to attract global technology providers and private investors.“Currently, the tariff for nuclear power is governed by the Department of Atomic Energy, in consultation with the Central Electricity Authority. However, private sector participation will necessitate governance by an independent regulator (such as CERC), enabling the possibility of competitive determination of tariffs,” Dwivedi said.“Also, involving the private sector in research and development of nuclear technologies for civil use, such as the development of Small Modular Reactors (SMRs), by allowing the creation of intellectual property rights would be a progressive step and in line with the approach adopted by several developed countries,” he added.