India Proposes Strict Approval System for Private Nuclear Power Projects

On August 14, India proposed a strict regulatory approval system for private nuclear power projects, aiming to create conditions for foreign reactor technologies with proven operating records to enter the Indian market while maintaining access and operational controls.

Under the draft rules, companies could obtain in-principle approval before securing formal licenses, allowing them to hire suppliers, conduct preliminary development work, and acquire project land. Once projects enter the licensing phase, they would undergo phased regulatory reviews covering design, siting, construction, commissioning, and operation. The draft also seeks to grant regulators stronger oversight powers, including the authority to halt work at critical project stages.

India's nuclear industry has long been largely state-controlled. Following its 1974 nuclear test, India's access to foreign nuclear fuel and technology was restricted for an extended period. Last year, India amended its nuclear energy laws to allow private companies to build and operate nuclear power projects, though licensing and strategic nuclear materials remain under state control.

India plans to expand its nuclear power capacity twelvefold over the next 20 years to reach 100 gigawatts. As one of the world's higher greenhouse gas emitters, India believes that attracting private capital and introducing foreign technology are essential conditions for achieving its nuclear expansion goals.

Previously, India has invited domestic private conglomerates such as Adani Green Energy, Tata Power, and Reliance Industries to participate in nuclear power investment. The related amendments to the nuclear energy act also address the liability of nuclear equipment suppliers in the event of accidents, aiming to re-attract foreign suppliers such as GE, Westinghouse Electric, and EDF.

The draft currently open for public comment allows for reactor designs with proven operating experience in overseas markets. Developers would be required to submit the licensing status and operating experience of the relevant reactors in their home markets.

The draft also requires nuclear power developers to provide financial security for nuclear damage liability, decommissioning, and radioactive waste management obligations, and to submit radioactive waste management plans.