Budget 25: Centre plans to rope in private players for nuclear energy generation, allocates ₹20K cr

To promote nuclear energy and invite private participation, Union Finance Minister Nirmala Sitharaman announced the ‘Nuclear Energy Mission’ with an outlay of ₹20,000 crore.

The Budget 2025-26, presented by FM Sitharaman, indicated the government’s intentions to bring private participation in nuclear power generation.

This, however, would need some amendments in the already existing Atomic Energy Act and Civil Liability for Nuclear Damage Act, which the Centre plans to do so, as per the Finance Minister.

The significant share for nuclear energy is aligned with the aim of achieving 100 GW of nuclear power generation by 2047, said FM Nirmala Sitharaman, presenting her eighth consecutive budget on Saturday.

Change in nuclear acts?

The Atomic Energy Act of 1962 granted monopoly to the Indian government, giving exclusive control of nuclear energy production to the Centre.

If the government wants domestic or foreign private involvement to achieve its goals, this act would need a significant amendment.

Since the Act also controls the mining and processing of nuclear materials to maintain the safety and security of nuclear materials, it also remains to be seen the scope of amendments the Centre is willing to make.

Not only that, the Centre has also noted the requirement of a change in the Civil Liability for Nuclear Damage Act, which establishes a legal framework for liability and compensation in case of a nuclear accident.