India has taken a bold and historic step by opening its nuclear energy sector to private participation, marking a significant shift from decades of exclusive government control under the Atomic Energy Act of 1962. Announced by Prime Minister Narendra Modi on November 27, 2025, this policy change aims to accelerate innovation and deployment in nuclear power, especially focusing on Small Modular Reactors (SMRs) which promise quicker, more flexible, and cost-effective energy solutions ranging from 30 to 300 MW. With a dedicated ₹20,000 crore Nuclear Energy Mission in place, India plans to launch 5 to 8 indigenous SMRs by 2033, signaling a strong push towards self-reliance in clean energy technology and strengthening the country’s energy security.
India’s nuclear capacity, currently limited to around 8 gigawatts from 24 reactors operated by state-owned entities like NPCIL and BHAVINI, has long been insufficient to meet the growing energy demands of its booming industrial sector, expanding data centers, and ambitious electrification targets. By allowing private companies into the fold, the government expects a surge in investment, manufacturing, R&D, and faster technological advancements that can help stabilize power supply and complement renewable energy sources, reducing reliance on imported fuels. This move is also aligned with India’s commitment to achieving carbon neutrality by 2070, as nuclear energy offers a low-emission alternative that can support carbon-heavy industries such as steel and cement.
However, the path forward is not without challenges. Ensuring strict regulatory oversight by the Atomic Energy Regulatory Board (AERB) remains critical for safety and public trust. Long-term nuclear waste management and securing adequate uranium supplies given limited domestic mining pose logistical hurdles. Additionally, nuclear projects demand high capital investments and have historically faced delays, which private sector participation must carefully manage to avoid inefficiencies. Amendments to the Atomic Energy Act and the Nuclear Liability Act aim to create an investor-friendly environment to mitigate some of these risks and attract wider participation.
Strategically, involving the private sector could reshape India’s position in global nuclear technology supply chains, fostering a new industrial ecosystem with increased export potential. Stable energy costs stemming from nuclear power can drive industrial growth, boost employment, and enable the rise of MSMEs and startups in the nuclear domain, preventing concentration of benefits among a few large corporations. Transparency, accountability, and inclusivity will be decisive factors determining the success of this sector transformation.
If executed with rigorous planning and oversight, this landmark reform could anchor India’s energy independence and clean growth ambitions, paving the way for a resilient, self-reliant economy by 2047. Nuclear energy, powered by private innovation and public regulation, is poised to become a cornerstone of India’s sustainable development and global trade leadership, securing the nation’s place in the future energy landscape.
Secretary — InGlobal Business Foundation (IBF)
Director — ReNis Agro International LLP, Ahmedabad, India
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