India Towards Building Nuclear Industry
Brief By Debalina Ghoshal Download Brief Here
This year marked a significant shift in India’s nuclear energy policy with the proposal to amend existing laws related to nuclear energy. This change aims to encourage and facilitate private sector participation in the nuclear energy market, which public enterprises have traditionally dominated. By opening up the sector to private investment, it is anticipated that the nuclear energy industry will experience substantial growth. This shift not only paves the way for increased competition but also enables the introduction of more advanced technologies that can enhance efficiency and safety. As a result, large-scale expansion of the nuclear energy sector in India could soon become a reality, allowing the country to meet its growing energy demands while also striving for a more sustainable and low-carbon future. The involvement of private entities could lead to innovations and improvements in infrastructure, ultimately benefiting the economy and the environment alike.
With advancements on India’s side, considering its focus now on Small Modular Reactors (SMRs) and its participation in the global International Thermonuclear Experimental Reactor (ITER) that focuses on fusion energy, the opening of the nuclear energy industry to private sectors could prove a boon, but not without hiccups. This policy brief comprehends the reasons that have led the government to take this decision and identifies the pros and cons of such decision-making, and also chalks out a way forward for India’s nuclear energy industry.
THE SHANTI BILL 2025
Dr Jitendra Singh, Union Minister of State, acknowledged the relevance of India’s nuclear energy in the field of healthcare, agriculture and safe drinking water, “delivering transformative gains.”[1] The relevance of nuclear energy in ensuring economic development has led India to propose to open the nuclear energy market to the private sector for participation. As of now, the nuclear energy industry has been under the domain of state control. This would be done with the help of an Atomic Energy Bill, which has undergone “concomitant vetting by law and justice ministry for legal compliance.”[2] The Bill is now solidified under Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI), which was granted assent and passed by both the Lok Sabha and Rajya Sabha during the Winter Session in 2025.[3] The Bill also grants statutory recognition to the Atomic Energy Regulatory Board (AREB)[4], providing AREB greater scope for monitoring and regulating the nuclear energy program and ensuring nuclear safety and security.
This private sector participation is set to provide a boost to India’s nuclear energy sector, which aims to reach a target of one hundred gigawatt nuclear power capacity by 2047 under the Viksit Bharat@2047 vision.[5] Amendments will be made to the Atomic Energy Act (AEA) and Civil Liability for Nuclear Damage (CLNDA) by repealing these legal arrangements to allow private sector participation.[6] The SHANTI bill will also open up further scope for peaceful nuclear energy cooperation with other countries.
India is already progressing towards developing SMRs known as Bharat SMR (BSMR) in India, for which Indian private companies like Reliance Industries, Adani Power, Jindal Steel and Power, Tata Power, Hindalco Industries, and JSW Energy have expressed their interest to participate.[7] These six companies have identified sixteen sites in six states for their ventures, which include Gujarat, Madhya Pradesh, Odisha, Andhra Pradesh, Jharkhand and Chhattisgarh.[8] India wishes to make SMRs operational by 2033.[9] There has been an allocation by the government of an amount of Rupees 20,000 crore for the development of five indigenous SMRs.[10] Private sectors could participate with the passing of the new bill in building new SMRs for nuclear energy that could boost the scope for innovation and advancements in technological skills and know-how.
There has been private sector participation in ancillary services provided in India’s ITER participation. Larsen and Toubro (L&T) has been the key contributor to the ITER project. ITER is an international collaborative project involving the European Union, China, India, Japan, South Korea, Russia and the USA. India’s role was to develop the cryostat, which formed the key component of the ITER reactor facility. In this project, India’s L&T played a critical role in design conceptualisation and “engineering metallurgy, welding technology, forming, machining, inspection & quality control and finally, the training of the people involved in the project.”[11]
GO NUCLEAR: RECENT DEVELOPMENTS IN INDIA’S PUBLIC SECTOR
So far, India’s nuclear governance has been a monopoly made possible with the help of public sectors like the Department of Atomic Energy (DAE) and NPCIL and Bhabha Atomic Research Centre (BARC). The DAE is responsible for overall governance, and it has six research and development centres, which include the Variable Energy Cyclotron Centre, Raja Ramana Centre for Advanced Technology, Indira Gandhi Centre for Atomic Research, Bhabha Atomic Research Centre and Global Centre for Nuclear Energy Partnership.[12]
The AERB operates under the auspices of the Department of Atomic Energy (DAE) under the Prime Minister’s Office (PMO) to effectively administer the provisions outlined in the Atomic Energy Act. The primary responsibility of the AERB is to carry out comprehensive safety regulations for a variety of industrial and research and development (R&D) facilities that fall under the jurisdiction of the DAE. Within this framework, two significant enterprises, Bharatiya Nabhikiya Vidyut Nigam Limited (often referred to as BHAVINI) and the Nuclear Power Corporation of India Limited (NPCIL), play crucial roles in the development and management of nuclear reactors. BHAVINI is specifically tasked with the development of Fast Breeder Reactors (FBRs), which are designed to generate more fissile material than they consume, while NPCIL is responsible for the operation and management of Pressurised Heavy Water Reactors (PHWRs), known for their efficiency in converting natural uranium into power. Together, these organisations ensure that the operational standards and safety protocols necessary for the safe use of nuclear energy are rigorously maintained.
As of now, the Nuclear Thermal Power Corporation (NTPC) Board, a company under the Ministry of Power, but not under the DAE, has approved a draft memorandum of understanding (MoU) with BARC for the indigenous development of SMRs.[13] NTPC is collaborating with NPCIL for large-scale nuclear projects like Mahi Banswara and Chutka under the Joint Venture (JV) Anushakti Vidyut Nigam Limited.[14] This partnership aims to leverage the strengths of both companies to advance nuclear energy production in India. By combining NTPC’s expertise in power generation with NPCIL’s nuclear technology capabilities, the two organisations seek to enhance energy security and promote sustainable development. The Mahi Banswara project, located in Rajasthan, and the Chutka project in Madhya Pradesh, hold significant potential for boosting the country’s electricity supply. These initiatives not only represent a commitment to renewable energy but also align with India’s strategic goals to reduce reliance on fossil fuels and meet rising energy demands. As the projects progress, they are expected to create numerous jobs and foster technological innovation in the region. This JV was made possible due to an alteration in the Atomic Energy Act, in which the definition of “government company” was expanded in 2015, allowing additional state-owned businesses not under the purview of DAE to venture into the nuclear energy industry. [15] India’s Foreign Direct Investment (FDI) policies do not allow foreign companies to participate in the nuclear energy industry.
ADVANTAGES OF THE NEW LEGAL PARADIGM
The new legal paradigm allowing the Indian private sector to participate in the nuclear energy market could boost investments considerably. This could provide an impetus to the nuclear energy industry, which is in dire need of development but lacks adequate resources to do so. Even while drafting the SHANTI Bill, there has been greater care taken to ensure that the management of spent fuel reprocessing and enriched uranium and also isotopic separation of certain materials, will be taken care of by the central government.[16] The central government will also be the sole controller of uranium and thorium.[17]
The Bill also did not reduce the role of government bodies involved in nuclear energy program, it has only added more players in nuclear energy program with legal restrictions like depending on central government for acquiring license, but also with legal benefits like “removal of an existing contentious liability clause for suppliers of fuel and technology,” and also rationalising “the levels of payouts by operators in case of accidents.”[18] Also, liability is on the central government if damage to nuclear infrastructure, including nuclear materials, takes place due to terrorism and even during armed conflicts or civil unrest.[19]
As far as the Shanti bill is concerned, any innovation made in the field of nuclear energy technology could apply for a patent under the legal frameworks established by the Patents Act.[20] This provision is especially significant as it encourages researchers and companies to develop cutting-edge technologies while ensuring they receive the necessary protections for their intellectual property. In addition to nuclear energy advancements, India is also making substantial plans for the implementation of Artificial Intelligence (AI), high-performance computing, quantum technologies, and indigenous semiconductor fabrication.[21] These initiatives not only aim to elevate the country’s technological capabilities but also to foster self-reliance and innovation in various sectors. By integrating AI and advanced computing methods, India seeks to enhance efficiency and productivity across multiple industries, potentially leading to groundbreaking developments that could significantly impact both the economy and society as a whole.
India’s Nuclear Suppliers’ Group (NSG) waiver in 2008 has provided greater scope for advancements in nuclear energy technology. This waiver has been provided to India despite India’s non-membership to the Nuclear Non-Proliferation Treaty (NPT), but owing to New Delhi’s responsible behaviour in the field of nuclear technology. This waiver was given because India pledged it would not share sensitive nuclear technology or material with other countries and would voluntarily uphold its moratorium on nuclear testing.[22] Such waivers can only endorse benefits if India’s own nuclear energy industry moves towards further growth. To be able to exploit such opportunities, India must be able to provide a domestic ambience that could chalk out strategies and policies that result in the development of the nuclear energy industry. The waiver has provided India the opportunity to attract other countries to collaborate in the nuclear energy field. Some examples of developments in 2025 in state-to-state collaboration on nuclear energy are given below.
India has collaborated with France on the Jaitapur Nuclear Power Plant (JNPP). In 2025, France also expressed its interest in extending its cooperation on SMRs and Advanced Modular Reactors (AMRs). The countries have also agreed to continue cooperation on the Jules Horowitz Research Reactor (JHR).[23] In 2025, India also struck deals with the United Kingdom on “advancing civil nuclear collaboration on nuclear security and waste and decommissioning” under an enhanced India-UK Nuclear Cooperation Agreement.[24]
India has entered into a significant nuclear deal with the United States, allowing the country to explore the potential of small modular reactors (SMRs). This agreement represents a key milestone in the broader context of the 2007 Indo-US Civil Nuclear Deal, often referred to as the 123 Agreement, which laid the groundwork for nuclear cooperation between the two nations. Under this new arrangement, technology transfer related to SMRs will be made available to Indian enterprises, paving the way for advancements in nuclear energy capabilities. Additionally, this deal signifies another considerable advancement in the Indo-US nuclear relationship, as it permits the co-development of US-produced reactors that can be manufactured in India. Such collaboration not only enhances India’s technological prowess but also strengthens its energy independence.[25] Moreover, India is actively working to bolster its nuclear cooperation with Russia, particularly in the area of floating nuclear power plants and SMRs. [26]
Meanwhile, China has been engaged in developing floating nuclear reactors on its artificial islands in the South China Sea, which serve both civilian and military use, like desalination.[27] In another strategic move, Russia and India have shown mutual interest in collaborating in the Arctic region of the Russian Federation. The primary focus of this partnership will be to improve connectivity and enhance infrastructure capacities. Specifically, they aim to support initiatives like the International North-South Transport Corridor and the Chennai-Vladivostok (Eastern Maritime) corridor, which promise to facilitate trade and logistical cooperation across these important regions. This deepening of ties highlights the growing importance of strategic partnerships in global energy and infrastructure development.[28]
Hence, India may also cooperate with Russia to develop its own nuclear icebreakers to strengthen its Arctic commitment with Russia by mitigating environmental challenges like the Arctic Ocean covered with ice. Russia already has nuclear-powered icebreakers to provide an impetus to cargo traffic in the Northern Sea Route in the Arctic region. Amid these developments, private sector participation could provide a greater scope for innovation not only for India but also for the state venturing into nuclear cooperation with India.
CONCERNS
Every coin will have two sides, and the decision to open the nuclear energy market to private sector organisations is not without its own limitations. The recent Indigo Airlines incident not only highlighted the nuances of private organisations to prevent smooth functioning of the economy, but also highlighted their ability to put a state’s honour and reputation at stake, especially at a time of foreign delegates’ visit, when India’s administrative, security and environmental ambience should be an example to set across the globe. The incident highlighted the inability of private sector enterprises to cope with shifts in the political economy. Hence, such incidents should not become a subject of criticism but lessons to learn from and chalk out policies accordingly.
A greater stake of private sector enterprises in the nuclear energy industry could also result in private sector organisations interfering in India’s stand on global arms control and proliferation mechanisms. For instance, for years India has stood firm on its decision not to become a signatory to the NPT; however, it is also the only country that has acted as a responsible state in its actions regarding nuclear proliferation by identifying and adhering to key non-proliferation resistant mechanisms. In 2014, India ratified the Additional Protocol (AP) to the International Atomic Energy Agency (IAEA) Safeguards Agreement that allowed IAEA officials to inspect civilian nuclear facilities of India. [29]
India could be pressurised by its private sector enterprises to sign treaties like the Comprehensive Test Ban Treaty (CTBT) and NPT in case they feel that India’s refusal from these legal arrangements is hampering the private sector’s profit-making agendas. Again, the fact that the cost of investment in these sectors is high, and hence, in future, private sector enterprises could charge a high cost to provide electricity, leading to a precarious situation and negating the entire notion behind venturing into nuclear energy for electricity generation.
Despite the pressing need to reach a net zero in pollution, India’s nuclear energy industry has experienced sluggish growth. Electricity generation through nuclear energy in India is only three per cent, while that through coal is seventy-two per cent.[30] However, there is a lack of financial infrastructure as private sector enterprises are not allowed entry into the nuclear energy market. As a result, financing of the nuclear energy industry by the private sector is as good as none. For years, there has been a lackadaisical approach to inviting the private sector to participate in the nuclear energy industry. In addition, private sector enterprises have also been apprehensive of the liability laws prohibiting them from showing any enthusiasm for participation in the nuclear energy industry. In addition, the slow growth in the nuclear energy sector that required investments with slow returns resulted in private sector enterprises forbidding them from this venture.
The bill uses the term ‘terrorism’ to address liability issues. However, the recent attack in New Delhi has highlighted that India is also grappling with severe insurgency problems, indicating that these insurgents can demonstrate belligerent tendencies. While the legislation focuses primarily on acts of terrorism, it falls short of tackling the complex legal implications associated with insurgencies and the various forms of belligerency that may arise. This oversight could lead to significant gaps in how the law is applied in real situations, potentially leaving communities vulnerable to both internal and external threats. A comprehensive approach that encompasses the nuances of both terrorism and insurgency would be crucial for establishing effective legal frameworks and ensuring the safety and security of citizens.
CONCLUSION
India’s decision to privatise the nuclear energy industry must take into account the various nuances associated with such significant developments. The process of privatisation should also actively encourage the participation of the private sector, ensuring that this involvement does not interfere with the nation’s broader policies and its established stance on global non-proliferation mechanisms. As we know, change is the only constant in any forward-moving society, and there is a pressing need for operational adjustments within India’s nuclear energy program that do not disrupt its existing institutional framework.
The recent nuclear bill put forth by India provides essential momentum for the private sector by streamlining and easing the regulatory norms that govern business operations within the nuclear energy domain. This initiative not only opens the door for increased investment and innovation but also acknowledges the role of private entities in fostering growth and efficiency in this critical sector. However, it is crucial to maintain stringent governance protocols, as nuclear oversight remains a top priority, firmly under the jurisdiction of central government authorities.
By establishing a robust private-state partnership, with the government retaining the authority over nuclear energy, the initiative stands to significantly enhance the nuclear energy industry’s potential. This collaboration would not only energise the industry but also ensure that all operations are conducted with the utmost diligence and responsibility. Such an approach would effectively address and mitigate concerns surrounding nuclear security and safety, fostering public confidence in the privatisation efforts while advancing India’s energy goals. In this delicate balance between private initiative and governmental oversight, India has the opportunity to lead as a responsible player in the international nuclear landscape.
[1] Dr. Jitendra Singh, “Homi Bhaba’s pledge and declaration to the world that India’s Nuclear Programme is dedicated to peaceful purposes has found its vindication under PM Modi,” Department of Atomic Energy, December 3, 2025, <Press Release:Press Information Bureau>
[2] Quoted Dr. Jitendra Singh, “’Draft Atomic Energy Bill in Advanced Stage, taking in all ministry inputs’: Jitendra Singh,” The Economic Times, December 4, 2025, <‘Draft Atomic Energy Bill in advanced stage, taking in all ministry inputs’: Jitendra Singh – The Economic Times>
[3] “President Droupadi Murmu Grants Assent To SHANTI Bill Passed By Parliament During Winter Session,” News on Air, December 22, 2025, <President Droupadi Murmu grants assent to SHANTI Bill passed by Parliament during Winter Session | DD News On Air>
[4] “India’s Nuclear-focused SHANTI Bill completes legislative process,” World Nuclear News, December 22, 2025, <India’s nuclear-focused SHANTI Bill completes legislative process – World Nuclear News>
[5] “Govt. considering legislative amendments to push private investments in nuclear space: Shripad Naik,” The Hindu, December 1, 2025, <Govt considering legislative amendments to push private investments in nuclear space: Shripad Naik – The Hindu>
[6] “Govt. considering legislative amendments to push private investments in nuclear space: Shripad Naik,” The Hindu, December 1, 2025, <Govt considering legislative amendments to push private investments in nuclear space: Shripad Naik – The Hindu>
[7] “Adani, Reliance among six private firms exploring small modular reactors,” The Economic Times, October 3, 2025, <Adani, Reliance among six private firms exploring small modular nuclear reactors – The Economic Times>
[8] “Nuclear Power in India,” World Nuclear Association, Updated on December 4, 2025, <Nuclear Power in India – World Nuclear Association>
[9] “India welcomes newest Rajasthan unit to grid,” World Nuclear News, March 17, 2025, <India welcomes newest Rajasthan unit to the grid – World Nuclear News>
[10] “Nuclear Power in Union Budget 2025-26,” Department of Atomic Energy, February 3, 2026, <Press Release:Press Information Bureau>
[11] “The ITER Cryostat,” L&T Heavy Engineering, <The ITER Cryostat | Capabilities | L&T Heavy Engineering>
[12] Anurag Duharia, Gaurav Mishra, Sanjay Dhoble and Chandrashekhar Mahakalkar, “The Spectrum of Atomic Energy Regulatory Board Under the Department of Atomic Energy with Respect to a Medical Radiation Facility,” Journal of Dutta Meghe Institute of Medical Sciences University, July-September 2022, <Journal of Datta Meghe Institute of Medical Sciences University>
[13] Madhvendra, “India’s nuclear power is set to 3x. Are these four stocks the biggest winners,” Financial Express, November 15, 2025, <India’s nuclear power is set to 3x. Are these 4 stocks the biggest winners? – Stock Insights News | The Financial Express>
[14] “NTPC,” September 17, 2024, <Govt. accords approval for NPCIL-NTPC JV Company “ASHVINI” to take up Nuclear Power Generation | NTPC Limited>
[15] Pradyun Chakraborty and Parmi Banker, “PPP in Nuclear Sector: unlocking potential for India’s clean energy transition,” International Journal of Projects Infrastructure and Energy Laws, <PPP in Nuclear sector: unlocking potential for India’s clean energy transition | IJPIEL>
[16] “The Sustainable Harnessing And Advancements for Nuclear Energy For Transforming India Bill, 2025,” Bill No. 196, <Sustainable_Harnessing_and_Advancement of_Nuclear_Energy_Bill,2025.pdf>
[17] “The Sustainable Harnessing And Advancements for Nuclear Energy For Transforming India Bill, 2025,” Bill No. 196, <Sustainable_Harnessing_and_Advancement of_Nuclear_Energy_Bill,2025.pdf>
[18] Saubhadra Chatterji, “SHANTI bill 2025: Government tables bill in Lok Sabha seeking to open up nuclear energy, scrap supplier liability clause,” Hindustan Times, December 16, 2025, <SHANTI bill 2025: Government tables bill in Lok Sabha seeking to open up nuclear energy, scrap supplier liability clause | India News>
[19] “Shanti Bill, 2025”, Forum IAS, <SHANTI Bill, 2025 |ForumIAS>
[20] “The Sustainable Harnessing And Advancements for Nuclear Energy For Transforming India Bill, 2025,” Bill No. 196, <Sustainable_Harnessing_and_Advancement of_Nuclear_Energy_Bill,2025.pdf>
[21] “The Sustainable Harnessing And Advancements for Nuclear Energy For Transforming India Bill, 2025,” Bill No. 196, <Sustainable_Harnessing_and_Advancement of_Nuclear_Energy_Bill,2025.pdf>
[22] “Nuclear Supplier Group (NSG) and India’s Membership,” Clear IAS, July 24, 2024, <Nuclear Supplier Group (NSG) and India’s Membership – Clear IAS>
[23] “France-India To Cooperate On SMRs and AMRs,” Nuclear Business Platform, July 19, 2025, <France-India To Cooperate on SMRs And AMRs — Nuclear Business Platform>
[24] “India-UK Vision 2035,” Ministry of External Affairs, July 24, 2025, <INDIA-UK VISION 2035>
[25] “Nearly 20 years after nuclear deal, DoE clears US firm to build & design reactors in India,” The Times of India, April 1, 2025.
[26] “India and Russia discuss new power plant options,” World Nuclear News, December 8, 2025,< India and Russia discuss new nuclear power plant options – World Nuclear News>
[27] Debalina Ghoshal, “China Deploys Floating Nuclear Power Plants to South China Sea,” Gatestone Policy Institute, April 24, 2025, <China Deploys Floating Nuclear Power Plant to South China Sea :: Gatestone Institute>
[28] “Joint Statement following the 23rd India-Russia Annual Summit (December 5, 2025), Ministry of External Affairs, December 5, 2025, <Joint Statement following the 23rd India – Russia Annual Summit (December 05, 2025)>
[29] “Ratification of Additional Nuclear Protocol,” Ministry of External Affairs, July 9, 2014, <Ratification of Additional Nuclear Protocol>
[30] Alok Kumar, “Why scaling nuclear is critical for net-zero path,” ET Energy World, November 24, 2025, <Scaling Nuclear Power: The Key to India’s Net-Zero Goal, ETEnergyworld>
