In a strategic move to transform India’s nuclear energy landscape, the government is considering allowing up to 49 per cent foreign direct investment (FDI) in the sector, which has long remained closed to private and foreign players. However, the FDI cap will be implemented in a phased manner, with an initial ceiling of 26 per cent that may be revised upward after a comprehensive review, according to a senior government official.

The proposed policy shift comes amid India’s push to scale its nuclear energy capacity from the current 8 GW to 40 GW by 2035, and ultimately to 100 GW by 2047, aligning with its energy transition and decarbonization goals. The government also intends to ensure that the majority ownership in nuclear joint ventures remains with Indian partners, in line with strategic considerations.

Finance Minister Nirmala Sitharaman, in her Union Budget speech in February, announced that amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be initiated to facilitate private sector participation. “Development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts,” she had stated, outlining plans to enable an “active partnership” with private enterprises.

Also Read :- JSW Energy to Invest ₹14,000 Cr to Expand Renewable Capacity of O2 Power

She also unveiled a ₹20,000 crore Nuclear Energy Mission focused on research and development of Small Modular Reactors (SMRs), with plans to operationalise at least five indigenously developed SMRs by 2033.

Stakeholder consultations are currently underway, with inter-ministerial committees working on finalising the legislative amendments required to enable this transition.

Industry experts have noted growing global interest in India’s nuclear sector. Russian nuclear major Rosatom has offered its expertise in developing SMRs, while French state-owned EDF has also expressed interest in participating.

As the government firms up the roadmap for achieving 100 GW of installed nuclear capacity by 2047, it is expected to outline the full spectrum of technologies that could be deployed to meet the ambitious target and ensure India’s energy security in the long term.

Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter, Instagram.

"Exciting news! Elets technomedia is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!