India opens nuclear energy sector to private companies, ending decades-old state monopoly and aiming 12x capacity by 2047.
India has taken a historic step by opening its nuclear energy sector to private companies as well as Prime Minister Narendra Modi announced the move on the 78th Independence Day, ending a decades-old state monopoly over the mining, import and processing of uranium. The reform will allow private firms to mine, import and process uranium for the first time. It is expected to bring in billions of dollars in investment, boost energy independence and expand India’s nuclear power capacity by 12 times by 2047. The government will also allow private players to supply critical control system equipment for nuclear plants.
The Prime Minister stressed that India has long depended on other countries for its energy needs. To achieve a truly self-reliant India, the nation must secure energy independence. He pointed out that in the past 11 years, India’s solar energy capacity has grown 30 times, and new dams are being built. Now, nuclear energy will be a major focus. Modi revealed that India currently has 10 operational nuclear reactors and aims to increase nuclear capacity tenfold by the centenary of independence.
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While private companies will enter the sector, the state will retain control over reprocessing spent uranium fuel and managing plutonium waste. This follows global practice and addresses concerns over nuclear material misuse, radiation safety and strategic security and the government will also design a regulatory framework to ensure safe mining, import and processing by private firms.
Government estimates show that if expansion goals are met, nuclear energy will provide 5 per cent of India’s total power needs. India has an estimated 76,000 tonnes of uranium, enough to fuel 10,000 megawatts of nuclear power for 30 years. However, domestic supply can only meet about 25 per cent of the projected increase. The remaining fuel will need to be imported, and processing capacity will be scaled up.
The government plans to amend five laws, including those regulating mining, electricity and foreign direct investment, to enable private participation. It may also relax rules to allow foreign players to take minority stakes in nuclear power plants. Several Indian conglomerates have already started preparing investment plans following the budget announcement on February 1.
Modi called reform a continuous process and said nuclear energy reforms will combine public and private strengths. With the new policy, India is positioning itself to meet rising power demand, reduce import dependency and build a resilient, self-reliant energy future.
