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August 5, 2025

Private Sector May Soon Operate Nuclear Plants, Govt Sets Entry Criteria

The CSR Journal Magazine

India’s government is preparing for a new era in the nuclear power sector. Officials now consider allowing private companies to build and operate nuclear power plants, a responsibility that, so far, only government-owned agencies such as the Nuclear Power Corporation of India Limited (NPCIL) and Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI) have held. With the “Viksit Bharat” programme, India aims for 22 gigawatts (GW) of nuclear capacity by 2032 and an ambitious 100GW by 2047. At present, government agencies run 23 nuclear power plants, with a total capacity of around 8.8GW.

Strict Qualifying Criteria

The government wants only reliable and experienced private firms in this sensitive sector. To make this possible, the Centre plans to introduce clear qualifying criteria. Officials say they will assess companies on financial health, technical expertise, and experience with large infrastructure projects. Interested companies must show a consistent record of positive revenue over the past few years and the capability to handle major projects from start to finish. These requirements aim to ensure that only stable and trustworthy firms take part in India’s nuclear journey.

To make private participation lawful, the government needs to change two main laws. First, it will amend the Atomic Energy Act, which currently blocks private firms from running nuclear plants. Second, it plans to modify the Civil Liability for Nuclear Damage Act. This change will set limits on how much liability equipment vendors and operators will face in the case of a nuclear accident and may cap the time frame for any claims. These legal updates will help attract both Indian and international investment.

A Broader Push for Clean Power and Innovation

India’s approach mirrors reforms in other sectors like space and defence, where private companies have spurred growth and innovation. The Centre also intends to announce a Nuclear Energy Mission in the next Union Budget. This mission could receive initial funding of ₹20,000 crore. Domestic giants such as Tata Power and Adani Power have already shown interest. India also welcomes global technology partners, especially in areas like small modular reactors.

The rising demand for clean energy motivates this shift. Nuclear power offers continuous, base-load electricity and supports India’s drive for net-zero emissions by 2070. By inviting the private sector and setting high standards, the government hopes to balance safety and reliability with fresh investment and innovation. This new chapter in nuclear power will help secure the country’s energy needs and support its ambitions for a sustainable future.

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