• @ India has set a target of generating at least 100 MW nuclear energy by 2047.
• $ India’s nuclear power capacity currently is merely 8,180 MW, which is just 2% of the country’s total power generation.

November 2025

Atomic Energy Act, 1962

Prohibits the private or even state governments

The Atomic Energy Act prohibits the participation of the private sector or even state governments.

Section 3

Under Section 3, the power to operate nuclear power plants is vested in the central government and companies or corporations established by it.

Nuclear Power Corporation of India Limited (NPCIL), PSU

The Nuclear Power Corporation of India Limited (NPCIL), a PSU under the Department of Atomic Energy, is the only entity operating nuclear power plants at present. It currently operates all 24 commercial nuclear power reactors in the country.

Handled by Department of Atomic Energy (DAE)

As of now, all matters related to atomic energy are handled by the Department of Atomic Energy (DAE).

MoPower, recommends to add itself

The high power committee, set up by the union ministry of power, recommended that since power ministry is responsible for the administration of the Electricity act, 2003 and the Energy Conservation Act, 2001 ,it should share some of the responsibilities on the nuclear power development.

Proposed amendments

Proposed amendments to the Atomic Energy Act, 1962.

Opening for private participation

• Proposes opening electricity generation in the atomic sector for private participation
• This was announced by Union Finance Minister Nirmala Sitharaman in her union budget in 2025-26.

Amend the definition of company

There is a proposal to amend the definition to allow any “company” under the Companies Act, 2013, to be eligible for a license to produce and use atomic energy.

Civil Liability for Nuclear Damage Act, 2010

May seem amendment in the next session in 2026

Amendment to the Civil Liability for Nuclear Damage Act (CLNDA), 2010 are also in pipeline.

Legal framework for compensation of victims

CLDNA on the other hand provides the legal framework for compensation to victims of a nuclear incident.

No fault liability on the operator

The law mandates strict and no-fault liability on the operator of a nuclear plant.

Section 17 - Operator pay for damage up to ₹1,500 crore

Under Section 17, the amount an operator will have to pay in case of damage caused by an accident goes up to Rs 1,500 crore. In case the damage claims exceed Rs 1,500 crore, the government has to step in.

Operator to cover the liability

CLDNA also requires the operator to cover liability through insurance or other financial security.

Limits government liability to 300 million SDRs

This law also limits the government liability amount to the rupee equivalent of 300 million Special Drawing Rights (SDRs). SDRs are rainy day foreign exchange reserves maintained by the International Monetary Fund, backed by dollars, euros, yen, sterling and yuan.

Foreign companies stay away due to this

Suppliers of equipment and potential operators including companies like US based Westinghouse Electric are also apprehensive about some of the provisions of the CLNDA, which has led to foreign companies staying away, contributing to the slow pace of development of nuclear energy. Print NDTV