The Indian government is contemplating permitting foreign firms to acquire up to 49% ownership in nuclear power facilities, according to three government officials. This strategic shift aims to expand India’s closely monitored nuclear sector, supporting India's objectives to reduce carbon emissions.
Since 2023, the government has been evaluating modifications to its nuclear foreign investment structure. The urgency to expand nuclear capacity has intensified as India endeavours to substitute coal-based power generation with environmentally friendly alternatives.
Such investments in the nuclear domain could potentially influence tariff discussions with the United States, although according to a Reuters report, officials were uncertain whether this matter would be connected to any specific trade agreement.
A civil nuclear agreement with the United States in 2008 enabled deals valued at billions of dollars with American firms. Nevertheless, these companies remained hesitant due to unlimited liability risks during accidents, and foreign investments were restricted from India's nuclear facilities.
The current proposals, coupled with plans to modify nuclear liability regulations and permit domestic private sector participation, could eliminate obstacles to the government's objective of expanding nuclear power capacity to 100 gigawatts by 2047, a twelve-fold increase.
According to Reuters sources, foreign nuclear investments would continue to require explicit government approval rather than automatic clearance.
The sources, requesting anonymity due to the ongoing deliberation of proposals, indicated that legal modifications would soon be presented to the federal cabinet.
They stated that the government intends to pass amendments to the Civil Liability for Nuclear Damage Act of 2010 and the Atomic Energy Act of 1960 during Parliament's July monsoon session.
The three sources revealed that amendments to the Atomic Energy Act would enable the government to grant licences to private enterprises for building, owning and operating plants, as well as mining and manufacturing atomic fuel.
Since 2023, the government has been evaluating modifications to its nuclear foreign investment structure. The urgency to expand nuclear capacity has intensified as India endeavours to substitute coal-based power generation with environmentally friendly alternatives.
Such investments in the nuclear domain could potentially influence tariff discussions with the United States, although according to a Reuters report, officials were uncertain whether this matter would be connected to any specific trade agreement.
A civil nuclear agreement with the United States in 2008 enabled deals valued at billions of dollars with American firms. Nevertheless, these companies remained hesitant due to unlimited liability risks during accidents, and foreign investments were restricted from India's nuclear facilities.
The current proposals, coupled with plans to modify nuclear liability regulations and permit domestic private sector participation, could eliminate obstacles to the government's objective of expanding nuclear power capacity to 100 gigawatts by 2047, a twelve-fold increase.
According to Reuters sources, foreign nuclear investments would continue to require explicit government approval rather than automatic clearance.
The sources, requesting anonymity due to the ongoing deliberation of proposals, indicated that legal modifications would soon be presented to the federal cabinet.
They stated that the government intends to pass amendments to the Civil Liability for Nuclear Damage Act of 2010 and the Atomic Energy Act of 1960 during Parliament's July monsoon session.
The three sources revealed that amendments to the Atomic Energy Act would enable the government to grant licences to private enterprises for building, owning and operating plants, as well as mining and manufacturing atomic fuel.
You may also like
Elon Musk fuels Trump 2032 buzz, asks America to 'think ahead'
Pahalgam Terror Attack: Why Western media loves to call terrorists 'gunmen'
Third single Thanu from Nani's HIT: The Third Case released
Pakistan will thirst for every drop of water and will become a desert: BJP's Shahnawaz Hussain
Harry Kane can finally end trophy woe this weekend - and no-one deserves it more
