India Ponders Opening Up Nuclear Power Industry to 49% Foreign Investment

India is considering a revolutionary policy change to permit foreign firms to take up to 49% ownership of its nuclear power plants. The step to increase nuclear capacity and cut carbon emissions is an important move toward bringing one of India's most jealously guarded industries into the modern age. The key highlights are below:

 

Key Highlights

Policy Change

 

The government has been considering overhauls to its nuclear foreign investment policy since 2023.

 

Amendments to the Civil Liability for Nuclear Damage Act (2010) and the Atomic Energy Act (1960) will be tabled in Parliament's July monsoon session2.

 

Strategic Aims:

 

India plans to raise its nuclear power capacity twelve times to 100 gigawatts by 2047, weaning itself from coal and topping up renewable sources4.

 

The program is aligned with India's clean energy transformation and carbon abatement goals.

 

Foreign and Domestic Involvement:

 

Global actors such as Westinghouse Electric, GE-Hitachi, Electricité de France, and Rosatom have shown interest in India's nuclear projects5.

 

Indian business houses, such as Reliance Industries, Tata Power, Adani Power, and Vedanta Ltd., are in talks to invest around $26 billion in the industry5.

 

Legal and Policy Framework:

 

Foreign investments will necessitate direct government approval instead of automatic clearance3.

 

The changes in the Atomic Energy Act will allow private sectors to construct, own, and operate nuclear reactors, mine and produce atomic fuel.

 

Economic and Environmental Effect:

 

The shift will attract foreign investments, catalyzing technology and economic progress.

 

It will also provide India with higher night-time power demands, to be used together with wind and solar power5.

 

This policy change reflects India's resolve towards sustainable energy options and its vision to become a world leader in nuclear energy.

 

Sources: MSN, Times of India, CNBC TV18, Moneycontrol, The Hindu Business Line