India's Nuclear Ambitions Face Policy Hurdles Despite Private Sector Interest

India’s ambitious goal to achieve 100 gigawatts (GW) of nuclear power capacity by 2047 is garnering significant interest from the private sector, but a report by SBI Capital Markets highlights that policy gaps must be addressed to ensure substantial private contributions. The report underscores the need for streamlined approvals, clearer cost allocation, and enhanced incentives to meet the target of private companies leading at least 50% of the nuclear capacity development.

The Bharatiya Small Reactor program is a key move to bring private players on board, but the report warns that bureaucratic hurdles could hold it back. “This isn’t just about building power plants,” it says, noting that companies making things like turbines, generators, or cooling systems could also cash in, creating jobs and driving new ideas in the nuclear industry.

This nuclear push ties into India’s goal of going carbon-neutral by 2070. Right now, the Nuclear Power Corporation of India runs 24 reactors that produce 8,180 megawatts—a far cry from the 100-gigawatt goal. India’s three-stage nuclear plan, which uses its huge thorium reserves, is meant to help the country rely less on foreign energy. Still, high costs and public fears about safety, like those seen in protests over projects in Kudankulam and Jaitapur, are tough obstacles.

External Affairs Minister S. Jaishankar recently called for updating India’s nuclear liability law to win over foreign investors. “The current law has not instilled confidence in the global nuclear industry,” he said, adding that fixing it could attract more international support. There’s also a proposal to change the Atomic Energy Act to allow up to 49% foreign investment in nuclear projects, which could give the sector a big lift.

Private companies are eager to jump in, but the SBI report warns that without quick policy changes, India’s nuclear ambitions might stall. The government needs to move fast to set up clear, welcoming rules that encourage both local and foreign companies to invest in a cleaner, more sustainable energy future for India.