Union Budget 2025 calls for ‘active private partnership’ in guarded nuclear sector

The Union Budget 2025, presented on Saturday by finance minister Nirmala Sitharaman, has called for an “active partnership” with the private players in the guarded nuclear sector under ‘Nuclear Energy Mission’ for ‘Viksit Bharat’, the.

“Development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts. For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up,” announced finance minister Nirmala Sitharaman on Saturday. Follow Union Budget 2025 live updates

The proposal to amend nuclear liability law to boost foreign and private investments in the much-guarded sector comes ahead of Prime Minister Narendra Modi’s US visit, likely to happen this month.

Strict liabilities under India’s Civil Liability for Nuclear Damage Act, 2010, have hampered implementation of the India-US nuclear deal that envisaged participation of US power plant makers such as General Electric and Westinghouse, a Reuters report mentioned.

The White House last week said that the plan for PM Modi’s US visit was discussed when he called newly sworn in US President Donald Trump.

The Atomic Energy Act of 1962 bars private investments in India’s nuclear power plants.

“This is definitely a positive in terms of meeting our climate change goals,” the report quoted Vikram V, Vice President, Co-Group Head – Corporate Ratings, ICRA Ltd.

“However, clarity would be required on the timelines for amending the Atomic Energy Act including the civil liability aspect as well as the overall tariff and policy framework for awarding these projects to the private sector,” Vikram V said.

Development of at least 100 gigawatts of nuclear energy by 2047 is essential for India’s energy transition efforts, finance minister Sitharaman said.

Nirmala Sitharaman also said a Nuclear Energy Mission for research and development of Small Modular Reactors (SMR) with an outlay of ₹20,000 crore will be set up. At least five indigenously developed SMRs will be operationalized by 2033, Sitharaman said.

India, which has pledged to achieve a net zero carbon emission target by 2070, asked the states that are away from coal resources to consider setting up nuclear-based power plants in 2024.

Last February, the government proposed to partner with private players to develop small nuclear reactors to boost production of electricity from sources that don’t produce carbon dioxide emissions.