The government is considering amendments in the laws governing the nuclear energy sector. To achieve the target of producing 100 gigawatts of nuclear energy by 2047, the government wants to increase the participation of the private sector in the nuclear energy sector. For this, there is a need to amend the laws related to the nuclear energy sector. Government sources said changes to the Atomic Energy Act are being considered to allow private sector participation.
There is a need to amend the Nuclear Damage Liability Act to limit liability on suppliers of equipment for the construction of nuclear power plants. The government is also considering regulatory reforms and is evaluating the Indian National Space Promotion and Authorization Center (INSPACe) model. INSPACE acts as the regulator for the space sector. In 2020, the space sector was opened to private participation.
Finance Minister Nirmala Sitharaman also announced the opening of the nuclear power sector to private sector participation in the budget, which was till now limited to public sector companies. Nuclear Power Corporation of India Limited (NPCIL) operates nuclear power plants across the country.
India received a waiver from the Nuclear Suppliers Group (NSG) to participate in the global nuclear trade after the historic Indo-US civil nuclear deal in 2008. Subsequently, foreign nuclear energy companies have shown interest in setting up nuclear power plants in India. However, the Civil Liability for Nuclear Damage Act of 2010 proved to be a hindrance to private sector participation. The private sector found some provisions of the law unacceptable.
