New Delhi : In a historic policy pivot that could redefine India’s energy landscape, the Narendra Modi government is reportedly set to introduce the Atomic Energy Bill, 2025 during the ongoing Winter Session of Parliament. The proposed legislation marks the most significant reform in the sector since the Atomic Energy Act of 1962, effectively ending a six-decade-long state monopoly and opening the doors for private sector participation in nuclear energy production.
Since independence, India’s nuclear sector has been a fortress, guarded closely by the Department of Atomic Energy (DAE) and operated exclusively by the state-run Nuclear Power Corporation of India Limited (NPCIL). The Atomic Energy Act of 1962 strictly prohibited private players from operating nuclear plants, citing national security and safety concerns. The proposed bill, however, would create new opportunities for private entities to participate in specific aspects of nuclear energy production, fundamentally altering the structure of the sector that has been in place for six decades.
According to information received by India Today, the government aims to redefine the term “company” within the Act, allowing private entities to partner in the production of nuclear energy. While operational control of reactors is expected to remain with government agencies to ensure safety, private players are likely to be invited to bring in capital, land, and technology, specifically for Small Modular Reactors (SMRs). These changes are designed to attract investment while upholding strict safety protocols.
he urgency behind this legislative push is driven by India’s ambitious climate targets. The government has set a goal to increase nuclear power capacity from the current 8 GW to 100 GW by 2047. Achieving this 12-fold increase requires an estimated capital infusion of nearly 15-19 lakh crore ($214 billion), and state-owned entities alone cannot shoulder this financial burden. By inviting private enterprise, the government hopes to bridge this massive funding gap, mirroring the success of public-private partnerships (PPPs) in the solar and wind energy sectors.
Unlike the massive, traditional nuclear plants that take decades to build, the proposed bill places a heavy emphasis on Small Modular Reactors (SMRs). These factory-built reactors are cheaper, safer, and faster to deploy.
Private companies (such as Reliance, Tata Power, or Adani Power) would provide the land, water, and upfront capital, and they would effectively “own” the electricity generated. However, the Nuclear Power Corporation of India Limited or a designated government agency would retain the licence to design, build, and operate the reactor, ensuring sensitive nuclear materials remain under state supervision. This hybrid model aims to secure private funding while assuaging concerns over nuclear proliferation and safety
While the Atomic Energy Bill, 2025 focuses on market entry, industry insiders suggest that amendments to the liability framework are also under consideration in order to make the sector “investable” for global players. However, attracting foreign technology for advanced reactors may remain a challenge without clarifying supplier liability.
