Private Companies May Get Entry into India’s Nuclear Power Sector

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The Department of Atomic Energy (DAE) prepared a Cabinet note proposing a new consulting subsidiary of state-owned Nuclear Power Corporation of India Ltd. (NPCIL). The proposed unit would support companies seeking to enter India’s newly opened nuclear power sector, according to officials familiar with the development. The subsidiary, which would be fully owned by NPCIL, is expected to provide design and engineering services, operations and management support, and regulatory assistance to private companies planning to build pressurised heavy water reactor (PHWR) units.

NPCIL to Support New Nuclear Power Entrants

NPCIL currently operates India’s PHWR-based nuclear power fleet and has extensive expertise in nuclear power generation. Consequently, private companies looking to develop PHWR projects have approached the state-run company for technical guidance. The proposed consulting subsidiary would formalise this support and provide private-sector entrants with access to specialised technical expertise. Companies are showing growing interest in India’s indigenous PHWR technology because of its established operating experience, safety record and potential cost advantages. Moreover, some companies exploring light water reactors based on overseas technologies have also sought technical advice from NPCIL.

India Targets 100 GW of Nuclear Capacity by 2047

India aims to significantly expand its nuclear power capacity to meet rising electricity demand while supporting its clean-energy and climate objectives. The country has set a target of 100 GW of nuclear power capacity by 2047. NPCIL itself plans to contribute around 54 GW to this target while also supporting other entities that seek to participate in nuclear power generation. Therefore, greater private-sector participation could accelerate the development of new nuclear projects across the country.

SHANTI Act Opens Nuclear Sector to Private Companies

The proposed NPCIL consulting unit follows a major policy change in India’s nuclear energy sector. In December 2025, the government introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, opening nuclear power generation to private-sector participation. Previously, nuclear power generation remained largely under government control, with NPCIL operating the country’s existing nuclear power plants. The DAE has issued draft rules and regulations to support implementation of the SHANTI Act. These provisions would allow eligible private companies to apply for licences to build, own, operate and decommission nuclear power plants.

Proposed Consulting Subsidiary to Provide Technical Support

According to the proposed framework, the new consulting subsidiary would initially have three NPCIL-nominated directors, including a chief executive officer and chief financial officer, to oversee its operations. NPCIL could provide the subsidiary with initial equity funding as required. The capital could support infrastructure and other assets, with additional funding potentially provided as the unit expands. The structure would allow NPCIL to leverage its technical capabilities while creating a dedicated platform to assist new participants in the nuclear industry.

Demand Grows for Independent Nuclear Expertise

Private-sector companies have previously called for an independent body to provide techno-commercial support as they navigate India’s highly regulated nuclear industry. Such support could cover areas including reactor design and engineering, reactor technology selection, site selection, operations and maintenance strategies, regulatory requirements and policy and project-related guidance. A joint report prepared by the DAE and the Ministry of Power last year also recommended creating a dedicated entity to provide technical assistance to companies interested in PHWR technology and other indigenous nuclear technologies.

Supporting India’s Nuclear Energy Expansion

The proposed NPCIL consulting subsidiary could play an important role as India expands private participation in nuclear power. By providing specialised engineering, operational and regulatory expertise, the unit could help new entrants navigate the technical and regulatory complexities of nuclear projects. As reported by economictimes.indiatimes.com, the initiative could strengthen India’s domestic nuclear technology ecosystem and support the country’s long-term ambition of achieving 100 GW of nuclear power capacity by 2047.