The Lok Sabha on Wednesday passed the Nuclear Energy (Amendment) Bill, 2024, marking a significant shift in India’s atomic energy policy by allowing greater private sector participation in nuclear power generation. The legislation amends the Atomic Energy Act of 1962, which previously restricted nuclear power generation exclusively to government-controlled entities.
The Bill was introduced by Union Minister of State for Atomic Energy and Space, Dr. Jitendra Singh, who emphasised that the amendments aim to accelerate India’s nuclear power capacity expansion while maintaining stringent safety and regulatory oversight. The legislation passed through voice vote amid heated debates, with opposition members raising concerns about safety protocols, environmental impact, and the potential for private monopolies in the critical energy sector.
Key Provisions and Implications
The amended legislation permits private companies to establish and operate nuclear power plants under the supervision of the Nuclear Power Corporation of India Limited (NPCIL) and regulatory frameworks administered by the Atomic Energy Regulatory Board (AERB). This move is expected to attract significant domestic and international investment into India’s nuclear energy sector, which currently contributes approximately 3% of the country’s total electricity generation.
Proponents argue that private sector involvement will bring advanced technology, enhanced efficiency, and faster project completion to India’s nuclear energy programme. The government anticipates that this policy shift will help achieve India’s target of increasing nuclear power capacity to 22.5 gigawatts by 2031, from the current installed capacity of around 7.5 gigawatts.
Safety and Regulatory Oversight
Minister Singh assured Parliament that all private nuclear power projects would be subject to the same rigorous safety standards and regulatory scrutiny as existing government-operated facilities. The AERB will continue to oversee licensing, safety clearances, and operational compliance. Additionally, the legislation mandates that private operators must maintain comprehensive insurance coverage and contribute to the national nuclear liability fund.
The Bill includes provisions for technology transfer agreements, allowing private entities to collaborate with international nuclear technology providers while ensuring that strategic nuclear materials remain under government control. This framework aligns with India’s commitments under various international nuclear cooperation agreements.
Opposition members criticised the timing of the legislation, questioning whether adequate public consultation had been conducted. Some parliamentarians expressed concerns about the potential for foreign influence in India’s strategic energy sector and called for more comprehensive parliamentary scrutiny before implementation.
The legislation now moves to the Rajya Sabha for consideration. If passed by the upper house, it will mark the most significant reform in India’s nuclear energy policy since the Indo-US nuclear deal of 2008, potentially positioning India as a major player in global civil nuclear energy development.
