The Union government has begun a policy exercise to formally integrate nuclear power into India’s clean energy framework after Parliament cleared the SHANTI (Atomic Energy) Bill, officials familiar with the matter said. While nuclear energy is recognised as a non-fossil, low-carbon source of electricity, it is not currently treated on par with renewable energy in India’s power-sector regulations.

Officials said the ongoing review aims to bridge this gap by aligning nuclear power more closely with other clean electricity sources within regulatory and market mechanisms, rather than announcing stand-alone fiscal incentives at this stage. An official from the Ministry of Power said the effort is focused on regulatory alignment to enable smoother integration of nuclear power into long-term power planning.

The move follows Parliament’s approval of the SHANTI Bill, which provides the legislative foundation for expanding nuclear capacity by permitting greater private sector participation in the construction and operation of nuclear power plants under a licensing regime, while retaining central control over nuclear fuel, safety regulation and strategic assets. The legislation seeks to address structural constraints that have slowed capacity additions, as India targets 100 GW of nuclear power by 2047.

A key proposal under consideration is whether nuclear power should be made eligible under Renewable Purchase Obligations. RPOs mandate power distribution companies and large commercial and industrial consumers to source a fixed share of electricity from clean energy. At present, nuclear power does not qualify, despite its low-carbon profile. Officials said inclusion under RPOs could improve long-term demand visibility for nuclear projects, which involve high upfront costs and long construction timelines.

The government is also reviewing the environmental classification of nuclear power plants under norms set by the Central Pollution Control Board. Nuclear plants are currently placed in the “Red” category, reserved for highly polluting activities, largely due to the handling of radioactive materials. Officials said the review is assessing whether this classification reflects the actual pollution profile of nuclear plants, which do not emit carbon dioxide or conventional air pollutants during operation.

Any change, officials stressed, would be limited to environmental categorisation and would not dilute radiation safety, waste management or oversight by nuclear regulators. The objective is to make the regulatory framework more enabling and reduce avoidable delays, while maintaining strict safety standards.

India’s net-zero commitment for 2070 requires a rapid expansion of clean electricity to meet rising demand from industry, urbanisation and electrification. While solar and wind are expected to dominate capacity additions, their intermittency limits round-the-clock supply. Nuclear power, with its ability to deliver continuous low-carbon electricity, is seen as important for grid stability as fossil fuel dependence is reduced.

Officials from the Department of Atomic Energy said consultations across ministries and regulators are ongoing, and no timeline has yet been set for decisions on RPO eligibility or environmental reclassification.