Private capital allowed in uranium mining: Nuclear power has emerged as a key element in India’s energy mix, as the country works towards its 2070 net-zero emissions target. The government plans to expand nuclear power capacity 12-fold by 2047, and has already begun easing restrictions to allow foreign players to take minority stakes in nuclear power plants. Since the start of 2025, several measures have been rolled out to accelerate this programme, revealing the urgency with which New Delhi is pursuing atomic energy.
The government is now considering a fundamental shift: permitting private firms to mine, import, and process uranium. Such a move would end the decades-old state monopoly in the sector and potentially attract billions of dollars in private capital. If realised, nuclear energy could account for about 5 per cent of India’s total energy needs, a modest share but one that strengthens energy security.
Globally, uranium powers about 10 per cent of electricity through more than 440 reactors. It is valued for its high energy density and role in reducing greenhouse gas emissions. Yet, concerns about radiation safety, waste management, and proliferation continue to cloud its adoption.
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India’s uranium mining challenge
India’s uranium reserves, estimated at 76,000 tonnes, can support 10,000 megawatts of nuclear power for three decades. However, rising demand means domestic resources can only cover a quarter of the projected increase. Imports, along with expanded processing capacity, will therefore be unavoidable.
Allowing private companies into uranium mining could ease shortages and encourage innovation. Countries like Canada, the United States, and South Africa already permit private participation in this field. India cannot achieve its nuclear targets without similar reforms, though the balance between private entry and strategic control will remain delicate.
Expanding partnerships
The dismantling of the state monopoly could also create space for foreign collaboration. India has long pursued the US-India Civil Nuclear Agreement, under which Washington would supply nuclear reactors. More recently, discussions with France have centred on cooperation in small modular reactors (SMRs), a promising technology for lowering costs and improving safety.
American firms such as NuScale Power, General Electric, and Westinghouse are well placed to contribute, while French expertise in SMRs adds another dimension. Together, these partnerships could strengthen India’s nuclear infrastructure and diversify its clean energy mix.
Safety and strategic concerns
Despite the economic case, the risks are real. The government has so far kept tight control over uranium mining and processing because of fears about diversion, misuse, and radiation hazards. It plans to retain authority over reprocessing spent fuel and managing plutonium waste, in line with global practice.
Any move to allow private participation will therefore require a robust regulatory framework. Discussions are underway on policies for safe mining, as well as allowing private firms to supply control systems and equipment for nuclear plants. The credibility of the programme will rest on effective regulation and transparency.
Obstacles to nuclear expansion
Beyond uranium, India’s nuclear ambitions face steep challenges. Nuclear plants are capital-intensive, with long gestation periods and frequent cost overruns. Installed capacity today is just 8,180 MW, far short of the Atomic Energy Commission’s vision of 650 GW by 2050. Public opposition, sharpened by memories of Chernobyl and Fukushima, continues to delay projects. Protests around plant sites highlight the need for greater public engagement and trust-building.
The potential of nuclear energy in helping India reach its net-zero goal is significant, but progress will depend on overcoming bottlenecks. Indigenous technologies such as pressurised heavy water reactors must be scaled up, while research into thorium-based reactors—where India has a natural advantage—needs faster development.
If reforms proceed as planned, India could unlock investments worth Rs 4–6 lakh crore ($50–70 billion) by 2035, enabling projects like Kovvada and Chhaya-Mithi Virdi to move forward. Strategic partnerships with the US and France will deepen, but New Delhi must also align its liability regime with global standards to reassure investors.
Nuclear energy will not provide the bulk of India’s electricity, but it can serve as a reliable low-carbon backbone. The challenge is to modernise the sector, balance security with openness, and build public confidence in an industry where a single failure can undermine decades of progress.