India is planning a major policy shift by opening up its nuclear energy sector for foreign players, something that had been off limits for a long time. Up to 49% foreign direct investment could be allowed in the nuclear energy landscape, though the liberalisation will be carried out in phases, starting with a 26% cap. This cap may be raised following a review.Additionally, the proposed framework will likely mandate majority ownership by the Indian partner in the venture.“We are open to allowing foreign investment… We can even go up to 49%, but in tranches,” a senior government official told ET.At present, the nuclear energy sector currently sits on the negative list for FDI and remains entirely under government control. But with ambitious plans to increase nuclear power generation capacity from the present 8 GW to 40 GW by 2035, the government is preparing the ground for private and foreign participation.Earlier during the February budget, finance minister Nirmala Sitharaman had also announced amending the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. These legal changes are crucial to facilitate a larger role for private entities in India’s nuclear power programme.“Development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts. For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up,” Sitharaman had said.She also announced a Rs 20,000 crore outlay for a Nuclear Energy Mission, focused on research and development of Small Modular Reactors (SMRs). The government aims to operationalise at least five indigenous SMRs by 2033.The official said that changes to the Acts are currently being finalised, with ongoing discussions involving key stakeholders. Committees made up of senior government officials have been set up to draft and finalise these amendments, and the process is actively underway.Industry interest is already picking up in India’s nuclear sector. Russian nuclear agency Rosatom and French state-owned EDF have already expressed readiness to collaborate with India on SMR technology.
