The Union Cabinet has greenlit a bill to open India’s nuclear power sector to private players, a move crucial for achieving 100 GW nuclear capacity by 2047. The SHANTI Bill proposes changes to civil liability laws, caps supplier liability, and allows up to 49% foreign direct investment. This aims to boost domestic energy production and meet net-zero targets.
NEW DELHI: Cabinet on Friday approved a bill that seeks to open the highly restricted nuclear power sector to private companies and is also crucial for the country’s goal of achieving 100 gigawatt nuclear power capacity by 2047.Officials said Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill proposes amending the civil liability law to shield plant operators and cap equipment suppliers’ liability, along with redesigning operator insurance to Rs 1,500 crore per incident under Indian Nuclear Insurance Pool.The bill proposes allowing up to 49% foreign direct investment and creating a unified legal framework for atomic energy, including a specialised nuclear tribunal.Private-sector entry will be governed by clear rules under govt oversight, while department of atomic energy will retain control over core functions such as nuclear material production, heavy water, and waste management.FM Nirmala Sitharaman had announced govt’s intent to open the sector to private participation in her Feb Budget speech. She had also unveiled a Nuclear Energy Mission with Rs 20,000 crore for R&D on small modular reactors (SMRs), and a plan to operationalise five indigenously developed SMRs by 2033. PM Narendra Modi indicated last month that govt was preparing to open the nuclear sector to private players. Atomic Energy Act bars private entities and state govts from operating nuclear power plants. Nuclear Power Corporation of India Limited, a PSU under DAE, is the sole operator and runs all 24 commercial reactors.Officials said SHANTI bill aimed to address long-standing concerns across the nuclear energy chain. They pointed to rising domestic energy demand, growth of data centres, and India’s 2070 net-zero target as factors driving ren-ewed global interest in nuclear power. Officials added scaling nuclear capacity ten-fold in two decades will require private-sector involvement. Anujesh Dwivedi, partner at Deloitte India, said, “Tariff for nuclear power is governed by the department of atomic energy, in consultation with the central electricity authority. Private sector participation will necessitate governance by an independent regulator, enabling competitive determination of tariffs.” “Involving the private sector in R&D of nuclear technologies for civil use by allowing creation of intellectual property rights would be in line with the approach of several developed countries,” he added.
