India Opens Nuclear Energy Sector to Foreign Investment, Targets 100 GW by 2047

New Delhi, May 21 (KNN) In a significant policy shift, India is set to open its nuclear energy sector to foreign direct investment (FDI), potentially allowing up to 49 per cent foreign ownership in phases.

The move aims to boost nuclear power generation from the current 8 GW to 40 GW by 2035 and 100 GW by 2047, as part of India’s clean energy transition.

Currently, the nuclear sector is on the FDI negative list and fully controlled by the government. The proposed liberalisation will begin with a 26 per cent FDI cap, with scope to increase to 49 per cent after review. Indian entities will be required to hold majority ownership in all joint ventures.

“We are open to allowing foreign investment... We can even go up to 49 per cent, but in tranches,” a senior government official told Economic Times.

To facilitate this shift, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act are being drafted. Finance Minister Nirmala Sitharaman had announced in the February 2025 budget that these changes would enable a greater private sector role in the nuclear programme.

As part of this initiative, the government has earmarked ₹20,000 crore for a Nuclear Energy Mission, focusing on research and development of Small Modular Reactors (SMRs). At least five indigenous SMRs are expected to be operational by 2033.

Global interest is growing, with Russian nuclear agency Rosatom and French state utility EDF expressing interest in collaborating on SMR technology. Government committees are actively working with stakeholders to finalise the legal amendments.

This landmark policy could position India as a major nuclear power hub, accelerating its clean energy ambitions while opening new avenues for international collaboration.

(KNN Bureau)