Private players will benefit India nuclear, minister says

Friday, 7 February 2025

Singh was speaking to The Indian Express days after Minister of Finance Nirmala Sitharaman included promises to amend Indian legislation to encourage private sector participation in the nuclear sector in the Union Budget for 2025-2026.

"We are inviting private participation in the nuclear industry … we expect that the participation of private players would energise the nuclear power sector and help it grow rapidly. We have seen the kind of impact private players have had in the space sector. Something similar can happen in nuclear as well," said Singh, who is the minister in charge of both the Department of Atomic Energy and the Department of Space.

Nuclear energy accounts for about 3% of India's current installed generating capacity, but it is aiming to grow its nuclear capacity from 6780 MWe today to 22,480 MWe by 2031. The government is targeting 100 GW of nuclear power for 2047 under its Viksit Bharat development strategy - a goal which Singh said is "very realistic".

"It is a challenging target, but not unachievable," Singh said, pointing to India’s space economy which is currently estimated to be worth USD8.4 billion, and projected to grow to USD44 billion by 2033: "Once a certain threshold has been reached, and the right atmospheres created, the growth can be very fast."

According to information from the US Department of Commerce International Trade Administration, the Indian government announced access for the Indian private sector to its space activities and programmes in May 2020, reflecting a major shift in its space policy. In February 2024, restrictions on foreign direct investment or ownership approvals for India's emerging private space industry were further relaxed, potentially opening up opportunities for international partner companies.

India's Atomic Energy Act of 1962 prohibits private control of nuclear power generation in India: only two government-owned enterprises - NPCIL and Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI, set up to build and operate fast reactors) - are legally allowed to own and operate nuclear power plants in India. The act was amended in 2016 to allow public sector joint ventures, but private sector companies and foreign investments are not allowed to invest directly in nuclear power in India. India's civil liability for nuclear damages, which would allow operators to have legal recourse to the reactor supplier, with no limit on supplier liability, in the event of a nuclear accident, has also been a stumbling block for overseas nuclear power plant vendors. 

Domestic progress

The Indian cabinet in 2017 approved the construction of ten domestically designed 700 MWe PHWR units using a fleet mode of construction to bring economies of scale as well as maximising efficiency. The first two of these units will be Kaiga 5 and 6, in Karnataka, and this week the heavy engineering arm of Indian engineering company Larsen & Toubro (L&T) announced that it has shipped the third steam generator for the plant. Excavation works for the units began in May 2022.

"L&T is committed to deliver 6-8 nos 700 MWe Steam Generators every year and for the success of 220 MWe Bharat Small Reactor (BSR) programme to ensure net-zero carbon emissions by 2070," the company said. The steam generator was manufactured at L&T’s AM Naik Heavy Engineering Complex at Hazira, Gujarat.