Prime Minister pushes for private sector entry in India’s Nuclear Sector | Current Affairs | Vision IAS
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    Prime Minister pushes for private sector entry in India’s Nuclear Sector

    Posted 28 Nov 2025

    2 min read

    Article Summary

    Article Summary

    Prime Minister aims to open India's civil nuclear sector to private players, boosting investment, innovation, energy security, and domestic manufacturing despite regulatory and resource challenges. 

    Highlighting the expansion of private entities in Space sector, Prime Minister said that the government is moving towards opening up the civil nuclear sector for private players.

    • Opening up of sector will result in mobilizing private sector investment, boosting innovation with faster rollout of Small Modular Reactors, enhancing grid stability and energy security, and strengthening domestic manufacturing. 

    Civil Nuclear Sector in India

    • Exclusive Control: Nuclear energy in India is primarily controlled by the Department of Atomic Energy (DAE).
      • Currently, India’s 24 reactors are run solely by the state-owned Nuclear Power Corporation of India Ltd (NPCIL), with an installed capacity of just 8.8 GW (2% of India’s total power generation). 
    • Target: Government has set a target of achieving 22 GW capacity by 2032 and 100 GW by 2047. 
    • Primary Legislations: Atomic Energy Act (AEA) 1962 and Civil Liability for Nuclear Damage Act (CLNDA), 2010.
      • Presently, AEA prohibits the participation of the private sector or even state governments in nuclear energy generation. 
      • CLNDA provides legal framework for compensation to victims of a nuclear accident. 
        • Under it, the amount an operator will have to pay in case of damage caused by an accident goes up to Rs 1,500 crore.

    Challenges to Private sector participation

    • Safety, Regulation, and Liability Concerns: CLNDA 2010 places heavy liability on suppliers, which may deter private investment.
    • National Security: Increasing private participation requires stronger oversight, traceability, and compliance mechanisms.
    • Long Gestation Periods: Nuclear projects often take 7–10 years to complete, private investors may be reluctant without assured returns or risk sharing mechanisms.
    • Resource Supply: India’s domestic uranium supply is insufficient to meet increasing demand and private entities will have to depend on imports.
    • Tags :
    • Nuclear sector
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