Daily News Analysis ‘India considers allowing 49% foreign ownership in nuclear power plants’ : 26 April

Key points:

• India may allow foreign companies to hold up to 49% stake in its nuclear power plants.
• This move aims to boost clean energy capacity and reduce carbon emissions by replacing coal-based power.
• India has been considering changes to its foreign investment rules in the nuclear sector since 2023.
• No foreign investment is currently allowed due to concerns over liability risks in case of nuclear accidents.
• Proposals include easing nuclear liability laws and allowing domestic private players into the sector.
• The government plans to expand nuclear power capacity 12 times to 100 GW by 2047.
• Any foreign investment would require prior government approval and won’t be on an automatic route.
• Amendments to the Civil Liability for Nuclear Damage Act (2010) and the Atomic Energy Act (1960) are expected to be tabled in the Monsoon Session of Parliament in July.
• Changes would allow private firms to build, own, operate plants, and mine/manufacture atomic fuel.
• Currently, India’s nuclear power generation is just over 8 GW, about 2% of total electricity capacity.

Why in News?

• India considers allowing 49% foreign ownership in nuclear power plants according to government sources.