India to Unleash Private Investment in Nuclear Energy, Seeks Major Law Reforms

Image Source: The Diplomat

India's government is working on a milestone rehaul of its nuclear energy legislation to encourage private investment and accelerate its atomic energy growth. The proposed changes to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act are set to be tabled during the monsoon session of Parliament, which seeks to allow private firms to construct and operate nuclear power stations for the first time.

Key Takeaways:

Private Sector Participation: The proposed amendments would bring the era of the public sector monopoly to an end, enabling private and foreign companies to directly engage in nuclear power generation. This is viewed as vital for achieving India's ambitious goal of 100 GW nuclear capacity by 2047.
Liability Reform: The government will relax supplier liability requirements under the Civil Liability for Nuclear Damage Act, resolving a major issue that has discouraged foreign technology suppliers and investors. The reforms would bring India's liability regime more in line with international practices.
Boost for Small Modular Reactors: The reforms would also promote the indigenous development of Bharat Small Reactors (BSRs), with five such domestic 220 MW modular reactors planned by 2033. Private industry would supply land and capital, while NPCIL would handle design and operations.
Investment Incentives: The government is weighing viability gap funding, sovereign guarantees, and a separate nuclear regulator to encourage private and foreign investment in large-scale modes.

Once enacted, these amendments will be a landmark change, making India a world leader in nuclear technology and clean energy.

Source: Economic Times, Indian Express, Hindustan Times, PIB