Cabinet approval and policy shift
Cabinet Nod to Atomic Energy Bill Unlocks Private Nuclear Projects: The Union Cabinet has approved the Atomic Energy Bill, signalling a significant shift in India’s civil nuclear policy framework. The Bill seeks to amend long-standing legal barriers that confined nuclear power generation to government entities alone. This decision aligns nuclear energy with broader economic reforms encouraging private participation.
The move supports India’s long-term vision of achieving 100 GW of nuclear power capacity by 2047. It also reflects the need to accelerate clean and reliable base-load energy sources to meet rising electricity demand.
Background of government dominance
India’s civil nuclear sector has historically remained under complete state control. The Atomic Energy Act, 1962 restricts ownership, operation, and fuel-cycle activities strictly to Central government agencies. As a result, expansion has been limited to a few public sector entities.
Static GK fact: The Department of Atomic Energy was established in 1954 and functions directly under the Prime Minister’s Office.
The Nuclear Power Corporation of India Limited (NPCIL) has been the primary operator of nuclear power plants. Limited operators and high capital costs slowed capacity expansion despite technological capability.
Liability law as a structural barrier
The Civil Liability for Nuclear Damage Act, 2010 emerged as a major deterrent for private and foreign participation. Its provisions created uncertainty over supplier liability in case of a nuclear incident. The “right of recourse” clause particularly raised concerns among global technology providers.
Most nuclear power-producing countries follow international liability frameworks. India’s deviation from these norms discouraged foreign investment and technology transfer.
Static GK Tip: International nuclear liability is generally guided by the Convention on Supplementary Compensation (CSC) framework.
Key amendments proposed
The Cabinet-approved Bill proposes amendments to two critical legislations. The Atomic Energy Act, 1962 will be modified to allow private companies and possibly state governments to set up and operate nuclear power plants under licensing mechanisms.
Simultaneously, amendments to the CLND Act, 2010 aim to rationalise liability provisions. This is intended to bring India closer to global standards and improve investor confidence.
Why reforms are essential now
Nuclear power projects require large-scale capital investment and advanced technical expertise. Sole dependence on government funding has constrained growth. Private participation can bridge financial gaps and improve execution efficiency.
A high-level expert panel in mid-2025 highlighted the massive financial and technological resources required to meet future nuclear targets. Without private and global participation, achieving scale would remain difficult.
Strategic and economic significance
Opening the nuclear sector is expected to mobilise fresh capital and encourage faster project development. Private efficiency can reduce construction delays and cost overruns that often affect large infrastructure projects.
The reforms may also facilitate the entry of advanced reactor technologies, including small modular reactors. This diversification strengthens energy security and supports India’s clean energy transition.
Static GK fact: Nuclear energy contributes less than 3% of India’s total installed power capacity despite long-term policy support.
Long-term implications
Aligning India’s nuclear framework with international norms enhances credibility and competitiveness. It also supports domestic manufacturing, fuel fabrication, and critical mineral mining associated with the nuclear ecosystem.
The Bill positions nuclear power as a strategic pillar for India’s low-carbon growth and energy independence in the coming decades.
Static Usthadian Current Affairs Table
Cabinet Nod to Atomic Energy Bill Unlocks Private Nuclear Projects:
| Topic | Detail |
| Cabinet decision | Approval of Atomic Energy Bill |
| Core objective | Allow private participation in nuclear power |
| Law amended | Atomic Energy Act, 1962 |
| Liability reform | Changes to CLND Act, 2010 |
| Existing operator | NPCIL as primary public sector entity |
| National target | 100 GW nuclear capacity by 2047 |
| Key challenge | Capital intensity and liability concerns |
| Strategic outcome | Faster expansion and global collaboration |
