'The Atomic Energy Commission has approved the FDI policy and it is going in for ministerial consultations.'
The Atomic Energy Commission has given its go ahead for the new foreign direct investment policy for the nuclear power sector, according to a senior official.
This brings the country a step closer to opening its nuclear power sector for private participation in line with the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025.
Key Points
- Atomic Energy Commission approves new FDI policy, advancing plans to open India's nuclear power sector to private participation.
- Policy aligns with SHANTI Act 2025, targeting significant expansion of nuclear capacity through foreign and private investments.
- Estimated Rs 20 lakh crore funding required to achieve 100 GW nuclear capacity target by 2047, highlighting financing challenges.
- Private sector enthusiasm remains muted post-legislation, raising concerns about participation despite policy reforms and incentives.
- Government aims to reduce project timelines and tariffs while pushing for at least one nuclear plant site in every state.
Nuclear FDI policy approval
"FDI initiatives are in the pipeline. The Atomic Energy Commission has approved the FDI policy and it is going in for ministerial consultations," said Seema S Jain, member (Finance), Department of Atomic Energy (DAE).
She was speaking at a workshop in New Delhi on the operationalisation of the Act organised by the Central Electricity Authority (CEA), DAE, and NTPC Ltd.
Jain added that innovative financing models will be expected so as to ensure fund flow to this sector, and so that it is not crowded by other competing demands.
"If we take Rs 22 crore per Megawatt (Mw) as the standard baseline which was the requirement in the recent approvals, easily around Rs 20 lakh crore financing is required to reach 100 Gw (Gigawatt) target by 2047," she said.
Fleet mode expansion or multiple reactors at one site will compress the total approval cycle and the time required for setting up of the nuclear power plants, Jain said.
Private sector interest concerns
Speaking at the same event, NTPC Chairman and Managing Director Gurdeep Singh flagged concerns over less than expected interest in the nuclear power sector from private companies.
"There was a lot of discussion before the Bill was passed. But after its enactment, the same level of excitement from the private sector is not seen for some reason," he said.
Taking note of the Centre's direction of at least one nuclear plant site to be identified in every state, Singh said: "We are working with around 14 states at present. And with little hesitance, I would like to say that the acceptance rate is not that high."
Tariff and timeline reduction
Speaking at the event, Central Electricity Authority Chairman Ghanshyam Prasad said there is a need to cut project timelines and tariffs to boost nuclear capacity addition.
"Tariffs for newer plants are in the range of Rs 5.50 to Rs 6.50 per unit and we will have to take steps to reduce this."
He added that the process for project commissioning, which currently takes around 13 years for regulatory approvals and project implementation, needs to be reduced to around eight to nine years or even lesser.
Feature Presentation: Ashish Narsale/Rediff
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