Centre considers legal reforms to support expansion of nuclear energy capacity

The government is considering major amendments to the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, to pave the way for private sector participation in India’s nuclear energy expansion, Minister of State for Power Shripad Naik informed the Rajya Sabha on Monday.

The reforms come as India targets 100 GW of nuclear power capacity by 2047, positioning nuclear energy as a key pillar of its long-term clean energy strategy. Naik said the Centre has taken “major steps” to diversify the country’s energy portfolio, including the launch of a ₹20,000-crore Nuclear Energy Mission aimed at developing at least five indigenously designed Small Modular Reactors (SMRs) by 2033 and accelerating advanced nuclear technologies.

Currently, the Atomic Energy Act does not permit private or even state government participation in nuclear projects, while the Civil Liability for Nuclear Damage Act establishes a stringent no-fault liability framework for compensation in the event of an accident. Both laws have been cited as barriers to private investment.

Naik said amendments are being explored to ease these constraints and create a clearer, more predictable regulatory environment for private companies. A committee set up by the Ministry of Power had earlier recommended legislative reforms to overcome structural challenges in meeting the 2047 capacity target.

Private participation in the nuclear sector faces significant hurdles, including high liability risks, limited access to sensitive technologies, heavy capital requirements, and complex regulatory and safety compliance. Concerns around public perception, fuel supply, waste management, and the strategic security of nuclear assets further complicate private entry. To tackle these issues, the government’s proposed amendments aim to streamline approvals, clarify liability norms, facilitate technology partnerships, and ensure strong state oversight. These measures, alongside the Nuclear Energy Mission, are expected to attract new investment, speed up project clearances, and support India’s push to scale up nuclear power generation.