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India Proposes Strict Regulatory Framework to Open Nuclear Power Sector to Private Firms

Jarida Report

India has proposed a closely regulated approval system for private nuclear power projects, setting out how domestic and foreign companies could participate in a sector that has traditionally remained under tight state control.

Draft rules under the country’s Nuclear Energy Act would allow companies to obtain preliminary approval before securing a full operating licence. This would enable prospective developers to select vendors, acquire land and undertake initial project development.

Foreign reactor technologies with established operating records could also be considered under the proposed framework, potentially widening opportunities for international nuclear technology providers.

Projects receiving licences would remain subject to regulatory scrutiny throughout their development. Authorities would review individual stages covering site selection, reactor design, construction, commissioning and eventual operation.

The proposed regulations would also give nuclear regulators the power to stop work at critical stages if projects failed to meet required standards.

India’s civil nuclear industry has historically been dominated by the state. International access to nuclear fuel and technology was severely restricted for decades following the country’s 1974 nuclear test.

A legislative amendment last year opened the way for private companies to construct and operate nuclear power projects, while the government retained authority over licensing and strategically sensitive nuclear materials.

The latest draft regulations provide greater detail on how that opening would work in practice, combining private investment and access to foreign technology with continued government oversight of the nuclear sector.

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