India is undergoing a significant transformation in its energy sector with the opening of the civil nuclear power domain to private participation, a shift marked by the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025. This legislation repeals the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, establishing a modern legal framework to attract investment and expertise.
Transformative Potential of Private Participation in Nuclear Energy
The SHANTI Bill aims to accelerate India’s nuclear power ambitions, with a target of 100 gigawatts (GW) of nuclear capacity by 2047, a substantial increase from the current 8.8 GW. This expansion is crucial due to:
- Addressing Capital and Technological Gaps: Public funding alone is insufficient for the required expansion. Private sector involvement, including up to 49% Foreign Direct Investment (FDI), is expected to bridge these gaps.
- Accelerated Project Delivery: Private participation across the nuclear value chain (exploration, fuel fabrication, manufacturing, construction, operations, decommissioning) is intended to expedite project delivery and enhance domestic manufacturing through an innovative “Fleet Mode” approach.
- Diversification and Decarbonization: Increased nuclear capacity will provide reliable, low-carbon baseload power, supporting India’s economic growth and its commitment to net-zero emissions by 2070. Nuclear energy complements intermittent renewables, ensuring a stable power supply and enhancing energy security.
- Modernized Legal and Regulatory Framework: The SHANTI Bill aims to balance investor confidence with public safety, aligning with international best practices. It proposes an independent nuclear safety authority and a specialized tribunal for dispute resolution, streamlining the regulatory environment.
Leading Indian Conglomerates Venturing into Nuclear Energy
Adani Group
Reportedly in discussions with the Uttar Pradesh government for commercial nuclear power projects, focusing on Small Modular Reactors (SMRs). The proposal involves building eight SMRs (200 MW each), totaling approximately 1,600 MW. This would likely be a public-private partnership where NPCIL operates the plant, and Adani Group finances and owns the power for captive use (e.g., AI data centers). Bhabha Atomic Research Centre (BARC) is designing these indigenous SMRs, with projected completion in five to six years post-approval.
Reliance Industries
Pursuing plans for Bharat Small Modular Reactors (BSMRs) for its substantial captive energy needs. The company has completed NDA formalities with NPCIL and aims to contribute to India’s goal of tripling nuclear power generation by 2030. These 220 MW Pressurised Heavy Water Reactors (PHWRs) are designed for captive use with reduced construction timelines. The proposal submission deadline is March 31, 2026.
Tata Power
Exploring opportunities for SMR projects ranging from 20-50 MW. CEO Praveer Sinha indicated scouting for potential locations and awaiting clearer legal frameworks. Tata Power sees SMRs as a strategic diversification complementing its renewable energy portfolio by providing stable baseload power.
Jindal Steel and Power
Through Jindal Nuclear, plans to develop 18 GW of nuclear power generation capacity over two decades, with an investment of approximately ₹1.80 lakh crore (around $21.5 billion USD). This includes indigenous Bharat SMRs and advanced Generation-IV reactors. Jindal Nuclear is responding to NPCIL’s requests for proposals for BSR deployment.
Hindalco Industries
Expressed interest in developing SMRs for captive industrial use. Hindalco is among six companies identifying potential sites for NPCIL projects, where NPCIL would retain ownership and operational control, while Hindalco would fund the project lifecycle for assured captive power. This aligns with Hindalco’s goal of achieving carbon neutrality by 2050.
JSW Energy
Has taken initial steps to participate in the Bharat Small Reactors (BSRs) program by submitting documents to NPCIL for Non-Disclosure Agreements. The company is exploring 220 MW reactors for captive power generation as part of its green energy transition strategy, aiming for 20 GW of green energy capacity by 2030.
Navigating Challenges for Private Players
- High Capital Costs and Long Gestation Periods: Nuclear projects require substantial capital (₹16-20 crore per MW) and span seven to ten years, demanding “patient capital” and innovative financing.
- Evolving Legal and Regulatory Framework: While the SHANTI Bill is a foundation, details on liability caps, private equity scope, and the independence of the nuclear safety authority are still evolving. The current Atomic Energy Regulatory Board (AERB) operates under the Department of Atomic Energy (DAE), prompting calls for more independent oversight.
- Liability Concerns and Risk Socialization: The previous Civil Liability for Nuclear Damage Act (CLNDA) 2010 deterred investment. While the SHANTI Bill aims to ease terms, concerns remain about practical implementation and potential “socializing risks” (public funds for liability).
- Operational Track Record and Technology Risks: Most private firms lack direct operational experience in nuclear power. Introducing new SMRs, which are largely unproven commercially, adds execution and regulatory risks. Upgrading from existing Pressurized Heavy Water Reactor (PHWR) technology is also a consideration.
- Fuel Supply and Processing Restrictions: Uranium mining, enrichment, reprocessing, and waste management remain state-controlled. India’s limited domestic uranium reserves necessitate imports, creating potential supply chain vulnerabilities. Private sector involvement in mineral exploration and fuel fabrication will operate within governmental controls.
- Land Acquisition and Public Perception: Large-scale projects face local resistance during land acquisition, causing delays and cost increases. Public apprehension regarding nuclear safety, influenced by global incidents, requires robust communication and safety assurances.
- Unclear Ownership and Revenue Models: Private players have raised concerns about financial structures, high service charges from NPCIL, and project viability without clearer funding arrangements (e.g., viability gap funding, sovereign guarantees). A purely profit-driven licensing regime also raises accountability questions.
Conclusion
The opening of India’s nuclear energy sector to private players is a game-changing moment for national energy security, decarbonization, and economic growth. The SHANTI Bill and government goals for SMRs and advanced reactors pave the way for dynamic public-private partnerships. While challenges like high capital costs, evolving regulations, and liability issues exist, the enthusiastic involvement of leading conglomerates indicates a strong intent to overcome them. A clear, stable, and transparent policy environment is crucial for realizing a diversified, clean, and secure nuclear energy future for India.
About the Author
