India May Allow 49% Foreign Ownership in Nuclear Sector

India May Allow 49% Foreign Ownership in Nuclear Sector

Why in the News?

The Indian government is considering allowing up to 49% foreign ownership in nuclear power plants by amending key laws. This move aims to boost nuclear energy capacity, reduce coal reliance, and attract foreign investments and technology partners.

Proposed Policy Changes:

• Government plans to allow foreign companies up to 49% stake in nuclear plants.
• Amendments proposed to the Civil Liability for Nuclear Damage Act (2010) and Atomic Energy Act (1960).
• Changes may be presented before the Union Cabinet soon and targeted for passage during the Monsoon Session of Parliament.
• Private companies may also be licensed to build, operate plants and manufacture atomic fuel.

Rationale Behind the Move

• Urgent need to expand nuclear power to replace coal and meet clean energy goals.
• Nuclear generation currently contributes only 2% (8 GW) of India’s total electricity capacity.
• Shift aims to address high night-time energy demand and carbon emission reductions.
• Foreign players like Westinghouse Electric, GE-Hitachi, EDF, and Rosatom have shown interest as partners, suppliers, and contractors.

Challenges and Future Outlook

• Any foreign investment will still need prior government approval.
• Past nuclear agreements (e.g., US-India 2008 deal) saw little progress due to liability concerns.
• If reforms succeed, India could scale nuclear power capacity to 100 GW by 2047.
• Broader acceptance would also boost tariff talks with the US and attract major investments.