Panel Backs 49% FDI, Legal Reforms For India’s Nuclear Sector

16 Oct 2025 CW Team

The inter-ministerial committee, set up to chart a roadmap for achieving 100 gigawatts (GW) of nuclear power capacity by 2047, has proposed opening the sector to foreign players and revamping India’s legal and insurance framework to attract global participation. At present, foreign investment is not permitted in India’s nuclear energy industry.

As per the panel’s recommendations, the Civil Liability for Nuclear Damage Act should be amended to:

Clarify that operators are protected from liability under other laws.

Ensure that supplier liability is capped and explicitly defined in contractual agreements with operators — a key concern for international nuclear equipment suppliers.

The committee is co-chaired by P. S. Karthigeyan, Joint Secretary at the Department of Atomic Energy (DAE), and Ajay Talegaonkar, Member of the Central Electricity Authority (CEA). It also includes representatives from the DAE, Nuclear Power Corporation of India (NPCIL), NTPC, Bhabha Atomic Research Centre (BARC), and the Ministry of Power, according to the report.

The panel further recommended strengthening insurance coverage under the Indian Nuclear Insurance Pool (INIP), managed by the General Insurance Corporation of India (GIC Re). It proposed that operators be insured for up to Rs 15 billion per incident, compared with the current floater policy, which would require enhancing the pool’s financial capacity.

The committee’s report also details India’s 100 GW nuclear energy vision, with:

46.5 GW from indigenous Pressurised Heavy Water Reactors (PHWRs),

38.8 GW from Pressurised Water Reactors (PWRs), and

5 GW each from Bharat Small Modular Reactors (BSMRs), Bharat Small Reactors (BSRs), and Fast Breeder Reactors (FBRs).

It also called for allowing licensed private-sector participation in activities related to nuclear fuel handling and component manufacturing.

The government is reportedly reviewing amendments to both the Atomic Energy Act and the Civil Liability for Nuclear Damage Act to pave the way for private and foreign involvement in nuclear power generation, marking a major policy shift for the sector.

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A government-appointed panel has recommended allowing up to 49 per cent foreign direct investment (FDI) in India’s nuclear power sector, alongside amendments to existing civil liability laws to protect plant operators and cap supplier liability, according to a report by the Economic Times. The inter-ministerial committee, set up to chart a roadmap for achieving 100 gigawatts (GW) of nuclear power capacity by 2047, has proposed opening the sector to foreign players and revamping India’s legal and insurance framework to attract global participation. At present, foreign investment is not permitted in India’s nuclear energy industry. As per the panel’s recommendations, the Civil Liability for Nuclear Damage Act should be amended to: Clarify that operators are protected from liability under other laws. Ensure that supplier liability is capped and explicitly defined in contractual agreements with operators — a key concern for international nuclear equipment suppliers. The committee is co-chaired by P. S. Karthigeyan, Joint Secretary at the Department of Atomic Energy (DAE), and Ajay Talegaonkar, Member of the Central Electricity Authority (CEA). It also includes representatives from the DAE, Nuclear Power Corporation of India (NPCIL), NTPC, Bhabha Atomic Research Centre (BARC), and the Ministry of Power, according to the report. The panel further recommended strengthening insurance coverage under the Indian Nuclear Insurance Pool (INIP), managed by the General Insurance Corporation of India (GIC Re). It proposed that operators be insured for up to Rs 15 billion per incident, compared with the current floater policy, which would require enhancing the pool’s financial capacity. The committee’s report also details India’s 100 GW nuclear energy vision, with: 46.5 GW from indigenous Pressurised Heavy Water Reactors (PHWRs), 38.8 GW from Pressurised Water Reactors (PWRs), and 5 GW each from Bharat Small Modular Reactors (BSMRs), Bharat Small Reactors (BSRs), and Fast Breeder Reactors (FBRs). It also called for allowing licensed private-sector participation in activities related to nuclear fuel handling and component manufacturing. The government is reportedly reviewing amendments to both the Atomic Energy Act and the Civil Liability for Nuclear Damage Act to pave the way for private and foreign involvement in nuclear power generation, marking a major policy shift for the sector.

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