Govt introduces Bill to open up nuclear sector to private players

The Bill proposes a calibrated opening of India’s nuclear power sector to private participation while retaining sovereign control over strategic assets and nuclear material
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The government on Monday introduced a Bill to permit private sector in civil nuclear sector. It also aims to putting in place a new liability regime.

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 is “aligned is to achieve the objectives of increasing the share of nuclear energy in the total energy mix of India, facilitate innovation in nuclear science and technology, expand its applications to non-power applications and continue to honour India’s obligations towards safety, security, safeguards and towards nuclear liability,” statement of object and reasons of the bill said. It was introduced by the Minister of State in the Prime Minister Office, Jitendra Singh.

The Bill proposes a calibrated opening of India’s nuclear power sector to private participation while retaining sovereign control over strategic assets and nuclear material. The Bill allows non-government entities to build, operate and maintain nuclear power plants or reactor under licence, marking a significant departure from the long-standing public-sector monopoly.

Section 3 of the Bill explicitly enables private participation, stating that a licence may be granted to “the Department of the Government of India or any person or company” to undertake nuclear energy activities, while also empowering the Centre to reserve activities of a “sensitive nature” to itself. The licensing framework is detailed further in Sections 6 and 7, which lay down the application process and conditions for grant of licences and safety authorisations to operators, including private entities.

At the same time, the Bill preserves central control over ownership and strategic responsibility. Section 14 provides that “the Central Government shall be liable for a nuclear incident” in specified circumstances, underlining continued sovereign responsibility. Section 15 distinguishes government-owned installations by exempting them from mandatory insurance requirements applicable to operators, signalling that ownership of certain facilities will remain with the State even where private operators are involved. Together, these provisions indicate a shift towards a state-led but privately supported nuclear power framework, allowing private operation and maintenance under strict regulatory and strategic oversight.

The bill will also repeal the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. ”It seeks to provide for a pragmatic civil liability regime for nuclear damage and to confer statutory status to the Atomic Energy Regulatory Board,” Singh said. The Bill adds that the operator shall be liable for damages except those caused by “a grave natural disaster of an exceptional character, an act of armed conflict, hostility, civil war, and insurrection or terrorism”.

However, the operator won’t be liable for damages in “under-construction nuclear installation itself and any other nuclear installation including a nuclear installation under construction, on the site where such installation is located, any property on the same site which is used or to be used in connection with any such installation; or the means of transport upon which the nuclear material involved was carried at the time of nuclear incident.”

“The maximum amount of liability in respect of each nuclear incident shall be the rupee equivalent of three hundred million Special Drawing Rights or such higher amount as the central government may, by notification, specify,” the bill added. It may be noted that special drawing rights are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund.

The Bill seeks to provide for the establishment of the Atomic Energy Redressal Advisory Council for the redressal of disputes. It aims to provide to provide that the Appellate Tribunal for Electricity will be the Appellate Tribunal for the civil nuclear sector. The bill has provision to provide for designation of officers as Claims Commissioner by Central Government for the purposes of adjudication of claims for compensation in respect of nuclear damage. Also, it will provide for establishment of Nuclear Damage Claims Commission for the adjudication in cases of severe nuclear damage.

Published on December 15, 2025