Indias new law to fuel energy needs, drive nuclear power growth
India has taken a decisive step to open its tightly controlled nuclear power sector to private and foreign capital, signalling a shift in how the country plans to meet soaring electricity demand while cutting emissions. Parliament earlier this month approved the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (Shanti) Bill, one of…
Parliament earlier this month approved the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (Shanti) Bill, one of the most consequential overhauls of India’s civilian nuclear framework in decades, ending years of near-exclusive state control.
Under the new law, private Indian and foreign companies will be allowed to build, own and operate nuclear power plants under government licence, while long-standing liability rules that had deterred investors have been eased, according to experts.
The legislation also redefines responsibility in the event of an accident, removing liability for equipment suppliers and introducing a graded liability cap for plant operators, aligning India more closely with international nuclear norms.
Experts said the changes could unlock stalled investment and accelerate India’s ambition to raise nuclear capacity to 100 gigawatts by 2047, from about 8.8GW currently, by reducing construction delays and legal uncertainty for developers.
“The recent push for private, including foreign, funding in the nuclear sector could push India to generate 10–12 per cent of its energy needs [100GW] from modest-sized nuclear reactors,” said Uday Chandra, an independent analyst based in New Delhi.
