India's Nuclear Power Sector May Welcome Foreign Investors

The Indian government is reportedly considering a groundbreaking policy change that would allow foreign companies to own up to 49% of nuclear power plants. This move is part of India's broader strategy to expand its nuclear sector and reduce carbon emissions.

Strategic Expansion and Environmental Goals

Since 2023, the government has been reviewing its nuclear foreign investment framework. The push for nuclear expansion comes as India seeks to replace coal-based power generation with cleaner alternatives, aligning with global environmental standards.

Potential Impacts on International Relations

This policy shift could influence tariff negotiations with the United States, among other countries. However, it remains unclear whether this will be tied to any specific trade agreements.

Overcoming Historical Hurdles

A 2008 civil nuclear agreement with the U.S. opened doors for billion-dollar deals, but foreign investment was hampered by liability concerns and restrictions. Proposed amendments to nuclear liability laws and the Atomic Energy Act could remove these barriers, paving the way for significant growth in India's nuclear capacity.

Looking Ahead

With plans to amend the Civil Liability for Nuclear Damage Act and the Atomic Energy Act, India aims to boost its nuclear power capacity to 100 gigawatts by 2047. These changes would also allow private sector participation in building and operating nuclear plants, as well as in atomic fuel mining and manufacturing.