India is preparing to welcome private companies to invest in its nuclear energy sector. The country is seeking an investment of around $26 billion, marking a significant shift in its approach to nuclear power development.

What Happened: As per a report by Reuters, the Indian government is currently in discussions with at least five private firms, including Reliance Industries, Tata Power, Adani Power and Vedanta Ltd. Each firm is expected to invest approximately ₹44,000 crore ($5.30 billion).

This initiative is part of India’s broader strategy to boost electricity production from non-carbon-emitting sources, which presently account for less than 2% of the country’s total electricity generation. The investment will support India’s goal of ensuring 50% of its installed electric generation capacity is derived from non-fossil fuels by 2030, a significant increase from the current 42%.

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Over the past year, the federal Department of Atomic Energy and the state-run Nuclear Power Corp of India Ltd (NPCIL) have conducted several rounds of talks with these private companies. The government’s objective is to construct 11,000 megawatts (MW) of new nuclear power generation capacity by 2040 using this investment.

Under the proposed funding model, private companies will invest in nuclear plants, secure land and water resources, and manage construction in areas outside the reactor complex of the plants. However, NPCIL will retain the rights to build and operate the stations and manage their fuel, as per the existing law.

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