India is planning a major policy shift by opening up its nuclear energy sector for foreign players, something that had been off limits for a long time.
Up to 49% foreign direct investment could be allowed in the nuclear energy landscape, though the liberalisation will be carried out in phases, starting with a 26% cap. This cap may be raised following a review. Additionally, the proposed framework will likely mandate majority ownership by the Indian partner in the venture.
“We are open to allowing foreign investment… We can even go up to 49%, but in tranches,” a senior government official told ET.
At present, the nuclear energy sector currently sits on the negative list for FDI and remains entirely under government control. But with ambitious plans to increase nuclear power generation capacity from the present 8 GW to 40 GW by 2035, the government is preparing the ground for private and foreign participation.
Earlier during the February budget, finance minister Nirmala Sitharaman had also announced amending the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. These legal changes are crucial to facilitate a larger role for private entities in India’s nuclear power programme.
“Development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts. For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up,” Sitharaman had said.