OPINION | Here’s how to ramp up India’s nuclear capacity

There is a need to establish a statutory Nuclear Regulatory Authority (NRA) with adequate staffing, financial autonomy, and the capacity to adopt globally benchmarked regulatory protocols

“No energy is more expensive than no energy,” Dr. Homi J. Bhabha once remarked, capturing the urgency of securing reliable power for India’s development. Long ago, as Pandit Nehru spoke of India’s tryst with destiny, Dr. Bhabha too made a tryst with India’s future, envisioning nuclear power as the force that would fuel industrial progress and raise living standards. Today, more than half a century later, the time has come for India to redeem that pledge.

The Indian government’s ambition to build 100 GW of nuclear capacity by 2047 reflects that vision. Yet, while the intent to open the sector to private industry participation is clear to enable the required 12-fold growth, the path remains unclear. Unless the uncertainties are addressed, India risks letting this tryst with destiny slip away.

Nuclear power’s a public sector monopoly

With a capacity of just 8.78 GW as of August 2025 —contributing to barely 3.4% of the total electricity—the scale of the planned expansion cannot be achieved by the public sector alone. Currently, only one public sector enterprise holds exclusive control for setting up and operating nuclear power plants.

While the government, through its 2015 amendment to the Atomic Energy Act, allowed central public sector enterprises (CPSE) to implement nuclear power plants, there has not been substantial progress.  Most of the CPSEs fall short of the necessary bandwidth to raise capital, execute projects swiftly, make quick decisions and absorb the risks that may be required for large-scale implementation.

Policy’s gearing up to attract private participation

The government has shown its intent to open the sector to private industry participation and is considering a comprehensive overhaul of its nuclear energy policy and regulatory framework by introducing a law to replace existing legislations such as the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010. Yet here lies the tension that may determine the fate of this grand mission: while the intent to bring in private players is evident, the conditions under which they are being invited remain unclear.

Unless there is clarity, private capital and capacity may struggle to flow at the scale envisioned, leaving India’s nuclear ambition stranded between promise and reality.

Based on discussions with some of the leading private sector players and sector experts, and deliberations in a workshop organised by Chintan Research Foundation, we offer a few policy suggestions.

1) Policy and Regulatory Reforms

Along with the need to amend the Atomic Energy Act to enable private participation in non-strategic areas, such as engineering, procurement, and construction (EPC), operations and maintenance (O&M) under license, ancillary services, and non-critical research and development, India also needs a comprehensive National Nuclear Power Policy that provides a unified long-term vision for the sector, aligning inter-ministerial efforts, streamlining project approvals, simplifying land acquisition, and establishing de-risking mechanisms to attract private investments.

2) Reforms to the Civil Liability for Nuclear Damage Act (CLND), 2010

For our liability law to be in harmony with international law, Sections 17(b) and 46 of the CLND Act 2010 may need deletion in their entirety, whereas Sections 17(a) and 17(c) should be retained. Private industries taking on the role of operators should be given the freedom to negotiate supplier liability contracts, allowing for balanced risk-sharing arrangements. Additionally, this should be supplemented by broadening the definition of supplier to align with global norms and best practices, thereby avoiding inflated operational and financing costs. Furthermore, clarity is also required on insurance protocols, including inspections by insurance firms and insurance coverage for hot-zone reactor sites, to improve the bankability of the projects.

3) Regulatory and Licensing Reforms

There is a need to establish a statutory Nuclear Regulatory Authority (NRA) with adequate staffing, financial autonomy, and the capacity to adopt globally benchmarked regulatory protocols. Regulatory approvals need to be streamlined by sequencing and clubbing compliance requirements in parallel to reduce delays and cost overruns. Moreover, the economic regulation of nuclear power should be brought under the Central Electricity Regulatory Commission (CERC) thereby avoiding conflicts of interest between the controlling Department of Atomic Energy (DAE) and the Regulator, thereby ensuring independence of the Regulator.

4) Fuel Supply, Technology, International Collaboration, and Supply Chain Localisation

Securing fuel supply and diversifying technology sources are critical to ensuring the resilience of India’s nuclear power programme. This requires long-term uranium supply contracts, accelerated research on thorium-based cycles and the exploration of advanced technologies such as molten salt reactors.

Every reactor project should include fuel tie-ups and spent fuel management arrangements with technology providers. Additionally, there is a need to institutionalise international R&D cooperation in frontier areas, such as nuclear fusion and advanced safety systems, while simultaneously accelerating the research and development (R&D) of Bharat Small Modular Reactors (SMRs) through industry partnerships and global collaboration.

Equally important is scaling up domestic reactor and turbine manufacturing capabilities to reduce costs and build a globally competitive supply chain. This can be achieved through phased localisation, vendor base expansion, and adherence to strict quality standards, which will enhance competitiveness and enable export-oriented manufacturing in line with the Atmanirbhar Bharat policy.

5) Finance, Market Architecture, and Risk Mitigation

The financial architecture of India’s nuclear sector must evolve to attract private and patient capital and reduce cost burdens. Innovative financing mechanisms, such as sovereign green bonds, PPP models with sovereign guarantees, pension funds and escrow-backed tariff payment systems, are crucial for making low-cost finance accessible to nuclear power projects. Nuclear energy should also be integrated into green finance taxonomies, enabling access to global climate finance and multilateral funds.

To achieve harmonisation in taxation, there is a need to reduce the GST on nuclear equipment and components from 18% to 5%, thereby bringing parity with other clean energy technologies such as renewables. This will subsequently lower the overall cost of power.   Additionally, the introduction of a Nuclear Power Purchase Obligation, like the Renewable Power Purchase Obligation, will create assured demand.

6) Capacity Building and Public Engagement

Sustained public trust and skilled human capital are the cornerstones of a thriving nuclear sector. The government should launch public education campaigns linking nuclear power with national energy security and low-carbon growth. Structured community engagement programmes in potential siting regions, supported by outreach toolkits for district authorities, will help build social acceptance.

Public concerns about radiation and safety must be addressed through transparent, science-based communication. Simultaneously, awareness among private firms about nuclear security obligations should be strengthened, with NPCIL playing an active handholding role.

Expanding human capital will require public-private training initiatives, government-supported training plants, and greater collaboration among NPCIL, DAE, BARC, and AICTE, requiring technical institutions to offer nuclear engineering programmes. In the initial stage, the government must take the lead in developing human capital through institutionalised courses with private players focusing on efficient project development, while creating high-end skilled employment in the economy.

7) Siting and Safety Standards Compliance

Modernising India’s nuclear siting framework is essential to support the capacity expansion. Given the anticipated need for many new sites, the government needs to expedite the process. End-of-life coal power plants can be repurposed to establish nuclear power plants initially using Bharat Small Reactors (220 Mwe), and subsequently with larger units involving private industries or in joint ventures with coal plant owners. To uphold the highest standards of safety with private players operating the plants, a Quality Assurance and Monitoring Framework, developed by the regulator in consultation with the operators. This framework can be implemented by NPCIL and BARC, given their vast sectoral expertise, under the supervision of the regulator.

These reforms are not merely a matter of investor comfort but are about whether India can realise the promise of nuclear power as a backbone of its clean energy future.

(Omkar Dhanke is a Research Analyst at CRF, and Dr Debajit Palit is the Centre Head of the Centre for Climate Change and Energy Transition at Chintan Research Foundation - CRF.)

Views are personal and do not represent the stand of this publication.