India has proposed a law that ends six decades of state monopoly over nuclear power, allowing private companies and even individuals to build and operate reactors.
The new bill must be approved by the lower and upper houses of parliament to become law.
Here's what you need to know:
WHAT IS THE REGULATION AROUND CIVIL NUCLEAR LAW?
Since 1962, nuclear projects were restricted to firms under the Department of Atomic Energy, mainly Nuclear Power Corporation of India. A 2015 amendment allowed other state-run companies to form joint ventures with NPCIL to develop plants. Since then NPCIL has teamed up with three state-run companies NTPC, IOC and NALCO, but none of those ventures completed their proposed plants.
WHAT ARE THE PROPOSED CHANGES?
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025, ends the government's monopoly by allowing private players to fully own and operate nuclear plants. Sensitive activities such as fuel enrichment, spent-fuel reprocessing and heavy water production will remain under government control.
WHY IS IT A BIG DEAL?
India aims to grow its nuclear capacity to 100 gigawatts in 20 years from 8.2 GW at present, making atomic energy a key part of its clean energy plan. The proposed legislation could attract billions of dollars from private companies such as Tata Power, Adani Power and Reliance Industries, which have announced plans to invest in nuclear power. Private firms can also import and process uranium, while foreign companies can partner with Indian firms.
FOREIGN PARTICIPATION?
Global suppliers, including Westinghouse Electric and GE‑Hitachi from the United States, France's EDF (EDFBE.UL) and Russia's Rosatom have expressed interest in providing technology and equipment for India's nuclear projects. The bill proposes foreign direct investment in joint ventures with Indian firms.
HOW HAS IT EASED LIABILITY LAWS?
The bill drops a clause that let operators sue equipment suppliers over defects - a hurdle for foreign vendors. The change cuts legal risk, makes insurance for vendors viable and is expected to draw global technology and investment.
WHAT ARE THE SAFEGUARDS?
Operators will need government licences and safety authorisation from the Atomic Energy Regulatory Board. Foreign-controlled firms cannot hold licences. Operators must set aside liability funds between $10.99 million to $330 million, depending on reactor size.
WHAT HAPPENS IN CASE OF AN ACCIDENT?
Compensation will come from operators' insurance liability funds, capped at 300 million Special Drawing Rights - an International Monetary Fund reserve unit - in line with global norms.
A nuclear liability fund will cover excess claims and the government will step in if damages exceed these limits.
