Green Bonds, Blended Finance Key To India’s Nuclear Ambitions: KPMG-USIBC Report

New Delhi, Jun 23 (KNN) India stands at a strategic inflection point in the development of its nuclear energy sector and has the potential to emerge as a global leader in nuclear power, according to a joint report by KPMG and the US-India Business Council (USIBC). 

The report said realising this potential will require coordinated action across financing, regulation, workforce development and international cooperation.

To build a resilient and future-ready nuclear ecosystem, the report advocates for harmonisation of safety standards, joint research and development initiatives, and innovative financing tools such as green bonds, blended finance and export credit support, ANI reported. 

These mechanisms, it noted, can help reduce investment risks, attract institutional capital and align nuclear projects with global sustainability objectives.

Policy Reforms Already Under Way

Significant legislative changes have recently been made to open India's nuclear sector to private participation. The SHANTI Act, passed in December 2025, repealed the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010 — both of which had restricted private and foreign investment and limited capital inflows. The new legislation enables private-sector participation subject to regulatory and licensing requirements.

The report said further legal and regulatory reforms would be necessary to unlock the sector's full potential, combining regulatory agility with financial innovation and international collaboration.

Workforce and Public Trust Are Critical

A key challenge identified in the report is the need for a skilled workforce capable of supporting India's long-term nuclear expansion. The report called for a structured framework to train and deploy personnel who can safely build and manage the targeted 100 GW of nuclear capacity by 2047. 

It recommended greater emphasis on STEM education at India's premier universities and cross-country collaborations to accelerate skill development.

The report also stressed the importance of transparent public communication to build societal trust in nuclear energy, particularly on issues related to nuclear waste management and environmental safety.

(KNN Bureau)