India is moving toward a more open nuclear power sector, with draft rules proposing a closely supervised system for private generation and allowing reactor technologies with proven operating records from overseas. The framework would open the sector to private and foreign investors while keeping government control over approvals and operations.
Under the proposed nuclear energy rules, companies could receive approval in principle to engage vendors, begin preliminary development and secure land before obtaining a formal licence. Once licensed, projects would undergo regulatory checks at each stage, covering design, site selection, construction, commissioning and operations. Regulators would also have powers to stop work at key stages.
India’s nuclear sector has remained largely under state control, while access to foreign fuel and technology was restricted for decades after the country’s 1974 nuclear test led to international restrictions.
Last year, India amended its nuclear energy law to allow private companies to build and operate nuclear projects, while retaining control over licensing and strategic nuclear materials.
India aims to increase its nuclear generation capacity 12x to 100GW over the next 2 decades. Private investment and overseas technology are expected to be important for achieving this target.
Domestic groups including Adani Green, Tata Power and Reliance Industries have been invited to invest in nuclear power. Changes to the law also capped the liability of nuclear equipment suppliers in accidents, addressing a longstanding concern for foreign companies such as General Electric, Westinghouse Electric and EDF.
The draft regulations, released for public consultation, would permit reactor designs with established operating records in other countries. Developers would need to provide licensing and operational experience from their home markets.
Nuclear power developers would also have to maintain financial security for nuclear liability, decommissioning and waste management. They would further be required to submit plans for handling radioactive waste.
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