By Kavita Mistry 
India is preparing for one of the most transformative reforms in its energy history. Prime Minister Narendra Modi has announced that the government will officially open the nuclear energy sector to private companies, ending six decades of strict state control. The reform aims to accelerate nuclear capacity expansion, spur innovation, and strengthen India’s long-term energy security.
A Landmark Policy Shift After 60 Years
Until now, the Atomic Energy Act, 1962 allowed only central government-owned entities to build and operate nuclear power plants. Private players, state governments, and foreign firms were barred from participating directly in nuclear energy generation.
PM Modi’s announcement marks the first major change to this policy, placing nuclear energy on a similar reform path as India’s space sector, which saw explosive growth after being opened to private industry.
Ambitious Goal: From 8.8 GW to 100 GW by 2047
India currently operates 8.8 gigawatts (GW) of nuclear capacity—far behind global leaders like the U.S., China, and France. With rising energy demand and commitments to reduce carbon intensity, nuclear power is seen as a critical baseload energy source.
The government now plans to scale capacity to 100 GW by 2047, a 10-fold expansion. Private-sector participation is expected to:
- Accelerate construction timelines
- Bring advanced technologies into India
- Reduce dependence on fossil fuels
- Boost innovation in reactor design and safety systems
New Atomic Energy Bill, 2025 to Enable Participation
The government has listed the Atomic Energy Bill, 2025 for introduction in the upcoming Winter Session of Parliament. The bill is expected to:
- Create a legal pathway for private players
- Define liability, regulation, and safety norms
- Enable investments in small modular reactors (SMRs) and advanced reactor technologies
- Modernise provisions of the 1962 Act
Finance Minister Nirmala Sitharaman had earlier hinted at changes to India’s nuclear liability framework—another crucial step to enable private investment.
Inspired by India’s Space-Sector Success
PM Modi made the announcement while inaugurating Skyroot’s new Infinity Campus, highlighting how private players revolutionised the space sector after liberalisation.
He emphasised that the nuclear sector can witness similar success, driven by:
- Youth-led innovation
- Advanced engineering
- Technological entrepreneurship
“India will emerge as a leader in advanced reactors and nuclear innovation,” the PM said.
A New Era for India’s Energy Future
As India aims for net-zero targets and rising clean-energy needs, the opening of the nuclear sector is being viewed as a bold, strategic, and future-ready move. If executed successfully, it may become one of the most significant reforms of Modi 3.0.