India on Monday initiated steps to end decades of state control over nuclear power by introducing a bill in parliament that would allow private companies to build and operate nuclear plants, as the government seeks to make atomic energy a cornerstone of its clean energy transition.
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The proposed legislation would permit private firms, including foreign companies operating through joint ventures with Indian partners, to apply for licences to enter the nuclear sector, subject to government approval.
India’s nuclear industry has remained tightly regulated since its first reactor became operational in 1969, shaped by Cold War-era politics and international fuel and technology restrictions imposed after the country’s 1974 nuclear test. Until now, the sector has been dominated exclusively by the state-run Nuclear Power Corporation of India Ltd (NPCIL), which owns and operates all existing nuclear power plants.
According to earlier reports, the government has been considering inviting domestic private players such as Tata Power, Adani Power and Reliance Industries to invest nearly $26 billion in nuclear energy projects.
The new legislation — titled the Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India Bill, 2025 — would allow any “person expressly permitted by the central government” to apply for a licence, marking a significant departure from decades of state monopoly. The bill must be approved by both houses of parliament before becoming law.
India aims to expand its nuclear power capacity to 100 gigawatts over the next two decades, a more than twelvefold increase from the current 8.2 gigawatts, as part of its long-term clean energy strategy.
The bill also removes a controversial provision that allowed nuclear plant operators to seek damages from equipment suppliers for defects — a clause that foreign suppliers have long opposed. Companies such as General Electric, Westinghouse Electric and France’s EDF have previously raised concerns over supplier liability.
Under the proposed framework, operator liability for large reactors would be doubled to 30 billion rupees (about $331 million), while the overall compensation cap would remain unchanged. The bill also proposes the creation of a nuclear liability fund to cover accident-related claims in line with international standards.
Private firms would be permitted to import and process uranium; however, strategic activities including uranium mining, nuclear fuel enrichment and fuel reprocessing would remain under government control. All operators would continue to require regulatory licences.
