On Monday, the Lok Sabha introduced a pathbreaking legislation with the aim of throwing open India’s nuclear power sector to greater private sector participation. The legislation also proposes a comprehensive overhaul of the existing nuclear liability regime to encourage investment and streamline processes for nuclear energy development.
The move marks a major policy shift as the government tries to increase the role of private industry in building, owning and operating nuclear power projects — a domain dominated so far by public sector entities such as Nuclear Power Corporation of India Limited (NPCIL). According to the proposed framework, qualified private companies would be permitted to set up nuclear plants, supply equipment, and take part in research and development — subject to strict safety and regulatory standards.
The revision of the nuclear liability framework, which prescribes compensation in case of damage resulting from nuclear incidents, is a key feature of the bill. Such provisions have hitherto been seen by industry as complex and as barring private investment. The new proposal was intended to spell out operator and supplier responsibilities, simplify the procedures providing compensation, and make the environment more investor-friendly while maintaining safety and public confidence.
Why This Matters
Nuclear power is considered a major factor in India’s transition toward energy, as it offers large-scale low-carbon power complementary to other renewable sources, like solar and wind. Accordingly, increasing nuclear capacity is taken as a strategic imperative in view of rising energy demand and ambitious climate targets under the Nationally Determined Contributions.
Since this would allow private firms for the first time, the government hopes to harness new capital investment, engineering knowhow and project-execution experience that might accelerate India’s nuclear power build-out while spreading risk and financial burden. Proponents say the measure will install a liability regime suitable for the modern world, something overseas suppliers have been demanding – and is needed – for India to secure foreign technological collaboration.
Industry and Opposition Reactions
Industry circles sponsoring the bill hail it as a much-needed reform that could trigger growth in the generation of power and domestic manufacturing. They say private investment will help accelerate advanced reactor designs and strengthen supply chains.
A number of lawmakers and experts have expressed concerns about both the safety standards and oversight capacity. As they say, strengthening of regulatory institutions should be done hand in hand in order to ensure that commercial ambitions will not result in any compromise in nuclear safety norms. The Bill now goes before the House for debates, committee deliberations, possible amendments, and then passage into law. As this process progresses, there will certainly be more weighing in from various stakeholders on striking a balance between reform and safety from business interests, civil society, and environmental groups.
