Energizing the Future: India’s Nuclear Sector Set for Historic Reforms

In a historic decision, the Centre plans to reform India's Atomic Energy Act and Civil Liability for Nuclear Damage Act to allow private and foreign investment into India's nuclear sector, closely regulated by the government. Under the planned changes, confirmed by senior ministers and government sources, the accident-linked liabilities of the suppliers of equipment would be capped, eliminating the provision that made them liable to unlimited damages. This shift is likely to overcome a long-standing barrier that prevented international behemoths such as General Electric and Westinghouse Electric from entering the Indian market.

The reforms are part of Prime Minister Narendra Modi’s ambitious plan to scale up nuclear power generation twelvefold, targeting 100 gigawatts by 2047. The amendments will align India’s liability norms with international standards, placing primary safety responsibility on operators rather than suppliers. Consultations have begun across ministries, with draft legislation likely to be introduced in the upcoming Monsoon Session of Parliament.

Industry captains and policymakers are convinced that these shifts will not just bring much-needed foreign investment but also facilitate Indian private sector involvement, fueling innovation and energy security. The shift is also regarded as imperative to furthering India-US trade relations and fulfilling climate objectives.

Source: Business Standard