India to Offer Financial Incentives and Guaranteed Power Purchases to Encourage Private Nuclear Investment

India Explores Measures to Boost Private Sector Participation in Nuclear Energy Sector

India is taking steps to encourage greater private sector participation in the nuclear energy sector as part of its broader clean energy transition. According to a report by The Economic Times, the government is preparing to hold consultations with technology developers, operators, and investors to assess funding requirements and technological preparedness before outlining a long-term roadmap for expanding nuclear power generation.

Abhay Karandikar, member of NITI Aayog, is expected to lead the discussions with stakeholders in the coming weeks. The Centre is also working on notifying rules under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, which opens several segments of the nuclear sector to private companies, including plant operations, power generation, equipment manufacturing, and selected fuel-cycle activities.

Financial incentives may be offered to attract investments, with support coming through the Rs 1 lakh crore Research Development and Innovation (RDI) scheme. This scheme provides long-term, low-cost, and unsecured financing for emerging technologies, including nuclear energy. Policymakers are also examining the possibility of creating a dedicated sector-specific fund to support private players during the industry's initial growth phase.

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Sensitive activities such as uranium enrichment beyond prescribed limits, spent fuel reprocessing, radioactive waste management, and heavy water production will remain under government control. India's installed nuclear power capacity currently stands at 8.78 GW and is expected to rise to 22.38 GW by 2031-32. The government's longer-term objective is to scale up nuclear capacity to 100 GW by 2047, supporting the country's decarbonisation ambitions and net-zero pathway.

The government had earlier announced a Rs 20,000 crore Nuclear Energy Mission aimed at accelerating the development and deployment of small modular reactors (SMRs), with a target of operationalising at least five indigenously designed SMRs by 2033.