India’s government is engaged in crucial discussions regarding new legislation that aims to enable private sector participation in the nation’s nuclear power plants. A central point of these deliberations involves the complex issues surrounding the management of nuclear waste and defining the role private entities might play in fundamental research and development of nuclear technologies.
While drafts of this proposed bill are being reviewed by an expert intergovernmental committee and the Law Ministry, there is a strong possibility it could be presented in the upcoming Winter Session of Parliament, according to an official close to the proceedings.
Presently, only state-owned enterprises like Nuclear Power Corporation of India Limited (NPCIL), Bhartiya Nabhikiya Vidyut Nigam Limited (BHAVINI), and their joint venture Anushakti Vidhyut Nigam Limited (ASHVINI) are authorized to construct and operate nuclear facilities in the country.
However, a significant shift was hinted at in February when Finance Minister Nirmala Sitharaman announced in her Budget speech that the government plans to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. These changes are intended to facilitate partnerships with private companies, including international ones, allowing them to build and operate nuclear plants in India.
Despite the 2008 Indo-U.S. nuclear deal opening doors for nuclear technology sales to India (under International Atomic Energy Agency oversight), existing clauses in India’s Atomic Energy Act and the Civil Liability for Nuclear Damage Act (2010) have historically created hurdles. These laws impose virtually unlimited liability on foreign nuclear equipment suppliers in the event of an accident, a major deterrent for private and international involvement.
Addressing Liability and Research
Efforts are underway to align India’s liability laws with international conventions, such as the Convention on Supplementary Compensation for Nuclear Damage (CSC). Equally critical are discussions to clarify responsibilities for nuclear waste disposal and spent fuel reprocessing – whether these fall to private operators or the government. Furthermore, fostering private sector involvement in core nuclear technology research and development is also a key agenda item.
This push for increased private sector involvement is part of India’s ambitious goal to achieve 100 GW of nuclear power capacity by 2047. This vision relies not only on importing foreign reactors but also on developing indigenous Bharat Small Reactors (BSRs). These 220 MW Pressurized Heavy Water Reactors (PHWRs) are being optimized for reduced land requirements, making them ideal for industrial sites (like steel and aluminum plants) to serve as captive power sources and support decarbonization efforts.
The strategy envisions private companies contributing land, cooling water, and capital, while NPCIL would manage the design, quality assurance, and operational aspects. This move supports India’s broader commitment to generating 500 GW of non-fossil fuel-based energy by 2030 and deriving 50% of its energy needs from renewable sources within the same timeframe.
Beyond BSRs, the Bhabha Atomic Research Centre (BARC) is developing Small Modular Reactors (SMRs) for replacing retiring coal-fired power plants and supplying electricity to remote areas. The Department of Atomic Energy (DAE) also has plans for introducing advanced nuclear reactor types, including high-temperature gas-cooled reactors for hydrogen production and molten salt reactors designed to leverage India’s significant thorium reserves.