India opens nuclear sector to private investment with $210b plan

This is expected to help lift nuclear capacity to 100 GW by 2047.

India has opened its nuclear sector to private investment as it seeks to mobilise about $210b to expand capacity to 100 gigawatts (GW) by 2047, following legislative changes that end decades of state control, a YCP report said.

The shift follows the passage of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act in December 2025, which dismantles the state monopoly established under the Atomic Energy Act 1962.

The legislation also allows private Indian companies to build, own, operate, and decommission nuclear power plants, whilst foreign participation is permitted through joint ventures with Indian entities.

India currently operates almost 9 GW of nuclear capacity and needs an additional 90 GW over the next 22 years to meet the government's 2047 target, increasing the pace of deployment by around tenfold compared with the historical rate.

“A tenfold increase in nuclear capacity cannot realistically be delivered by a single operator within two decades,” the firm cautioned.

The report said public sector funding and government-to-government agreements alone would be insufficient to support the planned expansion, making private capital essential.

Under the new framework, private companies can participate across much of the nuclear value chain, including power generation, engineering, manufacturing, operations and maintenance, and structured finance.

The government will retain control over strategic activities such as uranium and thorium mining, heavy water production, fuel reprocessing, and radioactive waste management.

The SHANTI Act also introduces a new liability framework. Operator liability is capped according to reactor size, whilst supplier liability is restricted to contractual provisions or cases of wilful misconduct.

The report said the changes address legal uncertainties that had deterred global technology providers and domestic investors.

YCP said opportunities could emerge across large grid-connected projects, captive industrial reactors, component manufacturing, and advanced reactor development.

However, the report warned that legal reform alone would not guarantee investment, as challenges remain around tariff structures, financing mechanisms, supply chain readiness, regulatory clarity, insurance arrangements, and public acceptance.

"Whilst the SHANTI Act has opened the door to private participation in India by removing legal prohibitions, the full commercial scaffold required for success is not yet in place," the report said.