India Opens Nuclear Power Sector for Private Investment

Union Finance Minister Nirmala Sitharaman announced the opening of the nuclear power sector to private investments to boost atomic energy production. The government aims to achieve net-zero carbon emissions by 2070 and will partner with private sectors to set up small reactors and research new nuclear technologies.

Union Finance Minister Nirmala Sitharaman on Tuesday announced the opening of the nuclear power sector to private investments, aiming to bolster the share of atomic energy production in India's energy mix. This move aligns with the government's objective to achieve net-zero carbon emissions by 2070.

While presenting the Union Budget, Sitharaman revealed that the government would collaborate with private entities to establish Bharat Small Reactors and advance research in small modular reactors. An allocation of Rs 1 trillion for research and development in the nuclear sector was also confirmed, as initially announced in the interim budget.

However, legislative amendments to the Atomic Energy Act will be required to permit the involvement of private companies in a sector traditionally reserved for governmental entities. This initiative also includes Rs 24,968.98 crore allocated to the Department of Atomic Energy, alongside a significant increase in funding for Bhartiya Nabhikiya Vidyut Nigam Limited (BHAVINI). This forms part of India's broader strategy to enhance nuclear capacity from 7,480 MW to 22,480 MW by 2031.