India’s Nuclear Vision: SBI Report Says Private Sector Ready, But Rules Need a Power Boost

Unknown Apr 02, 2026 1,600 Views

India's ambitious target of achieving 100 GW nuclear power capacity by 2047 is drawing increased attention from private players. Yet, a report by SBI Capital Markets brings out that important policy gaps will have to be overcome before the private sector can play a meaningful role in this cle...

Private Sector Interest Increasing

India's nuclear energy goal is attracting interest from a diverse group of private players, ranging from reactor makers and engineering companies.
Firms such as Tata Power have showed interest, subject to regulatory reforms allowing public-private partnerships.

Policy Loopholes Stunting Growth

SBI observes that current policies fail to adequately facilitate large-scale private involvement.
The process is sequential and slow, which slows down project development.
Inadequate cost apportionment and excessive risk charges discourage investment.

Government Initiatives

The Bharatiya Saksham Reactor (BSR) scheme permits private development of Pressurised Heavy Water Reactors (PHWRs) for captive use-a welcome step, but with stringent entry requirements.
Amendments to the Atomic Energy Act and the establishment of a new nuclear regulator to regulate private sector participation and ensure safety are being considered by the government.

What Needs to Change

Simplifying approvals and making cost-sharing arrangements clearer.
Adding compensation clauses to safeguard private players in case fuel supply is interrupted.
Clear pricing, state government incentives, and improved investor protections (e.g., force majeure provisions).
Sovereign guarantees and tax concessions on transferring plants to state ownership.

Outlook

With appropriate policy reforms and assistance, the private sector can provide as much as half of India's nuclear capacity goal, driving the country's clean energy transition faster.

Sources: Economic Times, Business Standard, Moneycontro

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