Opening nuclear power to private capital

India's nuclear opening coincides with a global renaissance in atomic energy driven by decarbonisation imperatives

- KAVYA WADHWA

THE INTRODUCTION OF the Atomic Energy Bill, 2025, in the Lok Sabha represents a fundamental restructuring of India's nuclear sector, creating investment opportunities worth an estimated $400 billion as the country targets 100 gigawatts of nuclear capacity by 2047. The Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India (SHANTI) law ends six decades of state monopoly in nuclear power generation, opening one of the largest untapped energy markets to private investment.

India's electricity demand is projected to treble by mid-century. Nuclear power contributes 3% to the national grid despite proven technical capabilities. The constraint has been capital. The state-owned Nuclear Power Corporation of India Limited cannot mobilise the $150-200 billion required for capacity targets. Private capital now has a pathway into this sector.

For global energy majors, reactor manufacturers, and infrastructure investors, the SHANTI Bill transforms India from a restricted market into a viable investment destination. Private entities can now own and operate nuclear plants, engage in fuel processing, and import equipment and technology. More significantly, the legislation addresses the two critical barriers that have deterred private investmentliability risk and regulatory uncertainty.

The Bill's liability provisions represent its most commercially significant innovation. Section 16 introduces a contractual right of recourse mechanism that fundamentally alters risk allocation in nuclear projects. Operators can now negotiate bespoke liability-sharing arrangements with suppliers and equipment manufacturers, explicitly incorporating recourse provisions into commercial contracts.