Historic reform: PM Modi says India will open nuclear sector to private players. Why it matters

Prime Minister Narendra Modi on November 27 announced one of India’s most sweeping energy-sector reforms in decades, declaring that the country’s tightly controlled nuclear power sector will soon open to private investment. Calling it a “historic shift,” the PM said the move will accelerate innovation, boost energy security, and position India as a global leader in advanced nuclear technologies. 

Modi made the announcement while inaugurating Skyroot Aerospace’s new Infinity Campus in Hyderabad and unveiling the Vikram-I rocket — India’s first privately built satellite-launch vehicle. 

Transformational reform for nuclear energy 

“For the first time, India is opening the nuclear sector to private players,” Modi said. “This will strengthen opportunities in small modular reactors, advanced reactors, and nuclear innovations.” 

The reform represents a significant departure from the Atomic Energy Act of 1962, which restricted private participation in nuclear power generation and retained state monopoly under the Department of Atomic Energy (DAE). 

Modi said that just as the space sector flourished after being opened to private companies — citing Skyroot’s rapid rise — the nuclear sector is poised for similar breakthroughs. 

“The scope of reforms is continuously expanding,” he said. “Just as space innovation was opened to the private sector, India is now moving towards opening the nuclear sector as well.” 

India’s first ‘Bharat Small Reactor’ 

The government’s plan includes developing Bharat Small Reactors, advanced modular reactors, and other next-generation nuclear systems. These technologies are crucial for India’s long-term clean energy strategies, especially as the country seeks stable, round-the-clock power to support rising industrial demand. 

Modi said private-sector investments would speed up the deployment of small modular reactors (SMRs), widely regarded worldwide as the future of scalable and flexible nuclear energy. 

“This reform will give new strength to India's energy security and technological leadership,” he said. 

Atomic Energy Bill, 2025 

The timing of the announcement is notable: it comes days before the Winter Session of Parliament, where the government will table 10 Bills, including the Atomic Energy Bill, 2025 — designed to regulate atomic energy use and enable private participation. 

The move also aligns with statements made earlier by the DAE. In August, the department confirmed that the government intends to amend both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage (CLND) Act, 2010 to allow private-sector involvement. 

Why this matters 

• Breaks six-decade monopoly of government over nuclear power 
• Encourages private investment in high-tech clean energy systems 
• Boosts innovation in SMRs, advanced reactors, and associated technologies 
• Strengthens energy security as India diversifies beyond coal, solar, and imported fuels 
• Enhances India’s position in global nuclear and space-tech ecosystems 

The announcement signals India’s most ambitious attempt yet to reimagine its atomic energy landscape — a sector that has historically been opaque, heavily restricted, and insulated from private enterprise.