Context: India is considering allowing foreign firms to hold up to 49% ownership in its Nuclear Power Plants, aiming to boost its nuclear sector and reduce carbon emissions.
Relevance of the Topic: Prelims: Key facts about India’s Nuclear Energy Sector; Atomic Energy Act, 1962.
India’s Nuclear Energy Sector
- As of 2024, the total Indian nuclear generation is just over 8 GW, which is just 2% of the country’s installed electricity capacity.
- India aims to expand nuclear power capacity by 12 times to 100 gigawatts by 2047.
- The government is considering changing its nuclear foreign investment framework. It would increase India’s nuclear capacity and replace carbon-intensive coal with cleaner energy.
- Necessary legal changes are required in the Atomic Energy Act, 1962. The amendments to the Act would allow the government to issue licences to private companies to build, own and operate a plant and mine and manufacture atomic fuel.
Atomic Energy Act, 1962
- The Act provides for the development, control and use of atomic energy for the welfare of the people of India and for other peaceful purposes.
- The central government through NPCIL (Nuclear Power Corporation of India) holds the authority for activities related to nuclear energy, including its production, development, use, and disposal.
- The Act restricts private companies from owning and operating nuclear power plants in India.
- The 2015 amendment to the Atomic Energy Act, allows NPCIL to form joint ventures with other public sector units (PSUs) to secure funding for new projects. However, this does not extend to private or foreign companies.
- Currently, private companies can participate in specific areas like supplying components and reactors, but not owning or operating plants. Discussions are ongoing about allowing Public-Private Partnerships (PPPs). This would require amendment to the Act.
Also Read: Nuclear Energy Sector in Union Budget 2025-26
However, the foreign nuclear investments would still require prior government approval rather than be allowed automatically.







