India

India’s Nuclear Expansion Could Face Setback Over Foreign Reactor Rules: Reuters

By GS Team
28 Aug 20262 mins read
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India's nuclear expansion plans face headwinds. New regulations favoring domestic technology could deter foreign investment and expertise, despite a law opening the sector. Aiming for 100 GW by 2042, India needs significant private and foreign capital. Experts warn stricter approvals may hinder international firms like Rosatom and EDF, impacting India's ambitious $210 billion nuclear power goals.

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India’s Nuclear Expansion Could Face Setback Over Foreign Reactor Rules: Reuters

India’s ambitious plans to expand nuclear power could be slowed by a proposed regulatory framework that introduces additional approval requirements for foreign reactor technologies, experts have warned, according to Reuters.

The proposed rules could encourage companies to rely more heavily on domestically developed technology rather than importing foreign reactor designs, potentially limiting the flow of international investment and technical expertise into India’s nuclear sector.

New Nuclear Law Aimed at Opening Sector

The draft framework comes after India passed a major nuclear law last year aimed at opening the tightly controlled sector to private companies and attracting foreign technology and investment.

India is seeking to increase its nuclear power capacity nearly tenfold to 100 GW over the next two decades as it attempts to reduce its dependence on coal, which remains the country’s dominant source of electricity.

The nuclear industry estimates that achieving the planned expansion could require nearly $210 billion in investment.

NPCIL Already Pursuing 14-GW Expansion

The Nuclear Power Corporation of India Ltd (NPCIL), the country’s sole nuclear power plant operator and technology holder, is already implementing a 14-GW expansion programme through 2032.

However, private investment and access to new reactor technologies are expected to be important if India is to achieve its longer-term 100-GW nuclear capacity target.

Global Nuclear Firms Show Interest

Several major Indian and international companies have expressed interest in participating in India’s nuclear expansion.

Indian conglomerates including Tata Power, Adani Power and Reliance Industries, as well as foreign companies such as Russia’s Rosatom, France’s EDF and US-based GE Hitachi, Source: Reutershave held discussions with the government.

Experts Warn of Impact on Foreign Investment

Experts cited by Reuters said additional regulatory hurdles for foreign reactor technologies could weaken the impact of India’s nuclear reforms.

They warned that tighter approval requirements could make international companies less willing to bring their technology and capital into the country, potentially narrowing India’s options as it seeks to rapidly expand nuclear generation.