India to Open Nuclear Power Sector to Private Investors Soon

• India plans to allow private firms in nuclear power, setting qualifying criteria
• Amendments to the Atomic Energy Act and Civil Liability Act are underway
• India targets a nuclear capacity of 22 GW by 2032 and 100 GW by 2047

Sources indicated India is considering permitting private entities to run nuclear plants by instituting qualifying conditions. Currently, the generation of nuclear power is solely from central public sector entities but they are working up changes to allow private participation in the process.

The anticipated framework could rank companies on a variety of metrics like financial soundness, technical skill, and relevant experience with scale. One of the items under consideration, for example, may involve companies demonstrating a track record of positive revenue over a defined time horizon. The qualifying conditions will find its way into the regulations to be issued following legislative changes.

According to the sources, "The idea is to allow companies that are established and have a proven record of developing large projects. The company should be a going concern, with a good financial outlook".

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In this context, the Union Budget has heralded proposed amendments to two Acts that are generally seen as promoting state-owned nuclear operations: the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. The intent, however, is to involve the private sector in India's clean energy transition, ultimately supporting a Viksit Bharat 2047 vision for the nation.

As of now, discussions are ongoing around amending both Acts and legal reviews are occurring, but the nuclear liability law is particularly problematic, as it has discouraged private investment because of concerns around risk in the event of an accident.

At present, India has 23 nuclear power plants, with a total generation capacity of 8.8 GW, all operated by the Nuclear Power Corporation of India. The government is aiming to grow the total generation capacity to 22 GW by 2032, and eventually, to 100 GW by 2047.