India Considers Allowing 49% Foreign Equity In Nuclear Sector Attract $ 26 Bn Investment

(MENAFN- KNN India) New Delhi, Apr 25 (KNN) India may soon allow foreign companies to own up to 49 per cent in its nuclear power plants, three senior government sources revealed.

This marks a major shift in policy for a sector traditionally under tight state control, as India intensifies efforts to transition from coal to cleaner energy.

The proposal, if approved, could attract global players like Westinghouse Electric, GE-Hitachi, Electricité de France, and Russia's Rosatom. These firms have long expressed interest in India's nuclear energy space, but legal and liability concerns have kept them at bay.

The move comes amid India's goal to expand nuclear power capacity 12-fold to 100 gigawatts by 2047. This would significantly boost its ability to meet rising night-time electricity demand while cutting carbon emissions.

Currently, India's nuclear generation capacity stands at just over 8 GW, about 2 per cent of total power output. The sector is entirely state-run, but private Indian firms such as Reliance Industries, Adani Power, and Tata Power are reportedly in talks to invest around $26 billion.

The proposed changes include amending two key laws: the Atomic Energy Act (1960) and the Civil Liability for Nuclear Damage Act (2010).

These amendments, likely to be tabled in the July monsoon session of Parliament, would also pave the way for private companies to own and operate plants and produce nuclear fuel.

While foreign investments would still need government clearance, the policy shift could pave the way for long-stalled nuclear deals with countries like the United States. The reforms may also ease tariff negotiations and unlock greater technological collaboration.

The Prime Minister's Office and key ministries have yet to comment on the proposals, which remain under review.

(KNN Bureau)

MENAFN25042025000155011030ID1109473754