India plans a major reform to its nuclear industry by introducing regulations that allow private and foreign companies to participate, aiming to accelerate its nuclear capacity expansion and attract crucial investments amid increased scrutiny following recent cyber security concerns.
India is preparing to loosen its long-standing grip on nuclear power by setting out a licensing framework that would let private firms, including foreign suppliers with established safety records, enter a sector that has been dominated by the state for decades. The Tribune reported that the draft rules would allow companies to win approval in principle before they secure a formal licence, giving them time to line up vendors, begin preliminary work and acquire land, while keeping the regulator involved at every major stage from design to operation.
The move follows last year’s legal changes, which opened the door for private companies to build and run nuclear projects while preserving government control over licensing and strategic materials. In December 2025, India’s Union Cabinet backed the SHANTI Bill, a sweeping reform package that also proposed changes to liability rules and, according to industry and business reports, would allow up to 49% foreign direct investment in nuclear projects.
That shift is aimed at unlocking investment for an ambitious expansion plan. India, the world’s third-largest emitter of greenhouse gases, wants to increase nuclear capacity to 100 gigawatts over the next two decades, a target that would require both private capital and imported reactor technology. Reuters has previously reported that the government has approached large domestic groups such as Adani Green, Tata Power and Reliance Industries, while the liability changes were designed to revive interest from foreign suppliers including General Electric, Westinghouse Electric and EDF.
The new draft rules also indicate that New Delhi wants to limit the field to reactor designs with real operating experience overseas. Developers would have to show licensing and operating records from their home markets and maintain financial cover for accident liability, decommissioning and radioactive waste management. The emphasis on tighter supervision comes as the country’s nuclear sector faces fresh scrutiny after recent reports of a data breach linked to work at the Kudankulam plant, though the Nuclear Power Corporation of India said the material involved did not relate to nuclear safety systems.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
