India has announced plans to amend its nuclear liability laws and establish a Nuclear Energy Mission, signaling a major shift in its energy strategy. This move comes just ahead of Prime Minister Narendra Modi’s expected visit to the United States later this month, where discussions on strengthening India-US relations, particularly in the energy and defense sectors, are anticipated to be a key focus.
The announcement was made by Finance Minister Nirmala Sitharaman during her Union Budget speech for 2025-26. The amendments aim to facilitate private sector involvement in India’s nuclear energy sector and address long-standing obstacles in the implementation of the 2005 India-US civil nuclear agreement. The revisions to the Civil Liability for Nuclear Damage Act (2010) and the Atomic Energy Act (1962) have been seen as necessary steps to advance the historical civil nuclear deal, which had faced challenges due to strict liability clauses in India’s existing laws.
In her budget speech, Sitharaman highlighted the importance of nuclear energy for India’s energy transition and future growth. “Development of at least 100 GW (Gigawatts) of nuclear energy by 2047 is essential for our energy transition efforts,” she stated, adding that amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will pave the way for private sector participation in nuclear power plants.
India’s proposed Nuclear Energy Mission will have an outlay of Rs 20,000 crore and will focus on the research and development of Small Modular Reactors (SMRs). The government aims to have at least five indigenous SMRs operational by 2033. These reactors, which are seen as a safer and more flexible solution for nuclear energy generation, will play a crucial role in India’s energy future.
The government’s push to include the private sector in the nuclear energy sector is seen as “historic” by Prime Minister Modi, who emphasized that civil nuclear energy will significantly contribute to the country’s development in the coming years. PM Modi also highlighted the role of nuclear energy in achieving India’s long-term development goals, including reducing carbon emissions and boosting energy security.
The recent decision by the United States to lift restrictions on three key Indian nuclear entities—the Bhabha Atomic Research Centre (BARC), the Indira Gandhi Atomic Research Centre (IGCAR), and the Indian Rare Earths (IRE)—has paved the way for renewed cooperation in the civil nuclear sector. This move, announced last month, followed discussions between Indian and US officials to remove barriers to nuclear collaboration between the two nations.
The historic India-US civil nuclear deal, which was signed in 2008 after years of negotiations, was expected to allow the US to share nuclear technology with India. However, progress was stalled for several years due to concerns over India’s nuclear liability laws, which made it difficult for American companies to invest in India’s nuclear energy sector. Now, with the lifting of restrictions and the planned amendments to India’s nuclear liability laws, opportunities for collaboration between India and US nuclear companies, including reactor manufacturers like General Electric and Westinghouse, are expected to accelerate.
India is also exploring collaboration in the small modular reactors (SMR) sector, an area where the US is a global leader. US-based Holtec International, a key player in the SMR market, is reportedly in discussions with India’s Department of Atomic Energy for potential partnerships.
As Prime Minister Modi prepares for his visit to the US, the focus on strengthening the civil nuclear partnership is expected to be a key topic in his meetings with US President Donald Trump. The two leaders are likely to discuss a broad range of issues, including trade, energy, defense, and furthering the India-US strategic partnership.
With these ambitious plans in place, India is signaling its commitment to expanding its nuclear energy capabilities, enhancing bilateral ties with the US, and positioning itself as a global leader in sustainable energy development.
Sources By Agencies
