India’s Nuclear Energy Sector Reforms

India plans to expand nuclear energy to 100 GW by 2047. Explore legal reforms, PPP models, thorium strategy, SMRs, and coal-to-nuclear site repurposing.

Introduction

India has set an ambitious target to increase its nuclear power capacity twelvefold to 100 GW by 2047, making nuclear power central to its clean energy transition and “net-zero” goals. With renewable energy subject to intermittency and fossil fuels facing gradual phase-out, nuclear energy provides a reliable, carbon-free option. Yet India’s nuclear sector is bound by outdated legislation, regulatory bottlenecks, and a lack of private and foreign participation. Reforming this sector is therefore both a strategic and economic necessity.

Existing Legal Provisions Governing Nuclear Energy

Atomic Energy Act, 1962

The Atomic Energy Act, 1962 vests exclusive control of nuclear power generation, development, and fuel cycle activities with the Central Government. As a result:

• Only government-owned entities like the Nuclear Power Corporation of India Ltd. (NPCIL) can establish nuclear plants.

• The Act restricts private and foreign entities from owning or operating nuclear reactors.

• This monopoly has limited India’s ability to scale up projects at the pace needed to meet its 2047 goals.

Civil Liability for Nuclear Damage (CLND) Act, 2010

The CLND Act establishes liability in the event of a nuclear accident. Its Section 17(b) allows operators to claim recourse from suppliers in case of a defect or negligence. However, this “supplier liability” has been seen as:

• A major deterrent for foreign suppliers, who fear unlimited liability exposure.

• A factor that increases project costs due to high insurance and legal risks.

• A blockage to Foreign Direct Investment (FDI) in India’s nuclear sector.

Regulatory Framework

The Atomic Energy Regulatory Board (AERB) regulates safety in the sector. However, industry stakeholders often point out:

• Lengthy clearance procedures – taking 7–8 years before project execution even begins.

• Duplication of documentation and reviews, which leads to delays.

• Safety oversight is necessary, but inefficiency has often stretched project timelines to 13–15 years, undermining financial viability.

Key Legal Reforms Needed

Amendments to the Atomic Energy Act, 1962

• Permit private sector participation in construction, engineering, and potentially even joint ownership with public entities.

• Allow Foreign Direct Investment (FDI) in select areas of the nuclear value chain such as Small Modular Reactor (SMR) development, supply chain, and EPC (Engineering, Procurement, and Construction) services.

• Create Public–Private Partnership (PPP) models to share risks and benefits.

Revisions to the CLND Act, 2010

• Clarify or amend Section 17(b) to ease foreign suppliers’ liability concerns.

• Establish a risk-pooling mechanism or government-backed insurance to ensure liability does not entirely deter participation.

• Provide legal clarity to ensure swift resolution in case of disputes.

Streamlining Regulatory Approvals

• Move towards a single-window clearance system integrating environmental, safety, and technical approvals.

• Adopt international best practices such as the U.S. “25 by 5” campaign that cut clinician paperwork; in nuclear, this could reduce duplication of clearances.

• Standardise documentation to bring project timelines down from 13–15 years to 6–8 years.

Public–Private Partnership Models

India can explore structured PPP models in nuclear power such as:

• Build-Own-Operate (BOO)

• Build-Operate-Transfer (BOT)

• Long-term Power Purchase Agreements (PPAs) to guarantee revenue certainty for investors.

Repurposing Retiring Coal Plant Sites

India’s coal power plants are gradually phasing out due to climate commitments. The government has identified three to ten retiring coal plant sites that can be repurposed for nuclear projects.

Advantages of Repurposing Coal Sites:

1. Pre-existing infrastructure such as land, water, roads, and transmission networks reduces project costs.

2. Clearances and land acquisition hurdles are minimised, as these sites already have industrial classification.

3. Community benefits – local populations impacted by coal closures can be reskilled and re-employed in nuclear operations.

4. Just transition strategy – ensures energy security while reducing socio-economic disruption in coal-dependent regions.

India’s Long-Term Fuel Security Strategies

From Uranium to Thorium

• India has limited uranium reserves but the world’s largest thorium deposits (approx. 25% of global share).

• The three-stage nuclear programme envisions using thorium in Advanced Heavy Water Reactors (AHWRs) to achieve long-term energy independence.

Development of Small Modular Reactors (SMRs)

• Government has allocated ₹20,000 crore for SMR development.

• Partnerships with EDF (France) and other international players will help co-develop modular designs.

• SMRs are suitable for distributed generation and require smaller land parcels, making them ideal for semi-urban and industrial clusters.

Green Hydrogen Integration

• A 5 MW High-Temperature Gas Reactor is under development for hydrogen production.

• This will link nuclear power with India’s National Green Hydrogen Mission, creating synergies in decarbonisation.

Building Domestic Manufacturing Capacity

• Indian firms like L&T and BHEL are scaling up component production.

• Training suppliers in global nuclear codes and standards will improve India’s competitiveness in the international nuclear market.

Challenges Hindering Expansion

1. High Capital Costs – Nuclear plants require billions of dollars upfront, deterring private investment.

2. Long Gestation Periods – Even with reforms, nuclear projects take years before generating revenue.

3. Public Opposition – Protests after Fukushima (2011) highlight local fears about safety and displacement.

4. Waste Management Issues – India needs robust frameworks for radioactive waste disposal and recycling.

5. Global Geopolitics – Sanctions, technology transfer restrictions, and reliance on uranium imports complicate strategic autonomy.

Why Reforms Are Urgent

• Climate Goals: India has pledged net-zero emissions by 2070. Nuclear energy must provide stable base-load power to balance renewables.

• Energy Security: Diversification from imported oil and gas reduces vulnerabilities.

• Economic Growth: Large-scale nuclear power will support industrialisation, green hydrogen production, and sustainable urbanisation.

• Strategic Autonomy: Domestic nuclear capability strengthens India’s geopolitical bargaining power in global energy politics.

Conclusion

India’s ambition of achieving 100 GW of nuclear capacity by 2047 will remain aspirational unless supported by robust legal and policy reforms. The Atomic Energy Act, 1962 must be amended to permit private and foreign participation, while the CLND Act, 2010 requires clarity to address liability concerns. Streamlined regulation, innovative PPP models, and repurposing retiring coal plant sites can accelerate deployment.

Fuel security strategies involving thorium, SMRs, and hydrogen integration will ensure long-term sustainability. With strong domestic manufacturing and international partnerships, India can position itself as a global leader in nuclear energy.

The choice is stark: either reform now and realise the full potential of nuclear power, or risk falling short of clean energy goals. By embedding reforms in law, policy, and practice, India can transform its nuclear sector into the backbone of its future energy landscape.

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The Source’s Authority and Ownership of the Article is Claimed By THE STUDY IAS BY MANIKANT SINGH