Govt Approves Atomic Energy Bill 2025 To Reshape Nuclear Power Sector
The law will enable private firms licensed under Companies Act 2013 to participate in the nuclear power sector, sources said.
The Union Cabinet has approved the Atomic Energy Bill 2025, sources told NDTV Profit. The legislation, which is set to reshape India's nuclear power sector, has been under consideration since earlier this year.
Through the proposed law, the government may broaden definition of “company” under Atomic Energy Act. This will enable private firms licensed under Companies Act, 2013, to participate, the persons privy to the development said.
Further, licence eligibility may be expanded to permit private companies to produce and use atomic energy under “strict” regulation, they added.
The legislation is likely to include amendments to Section 3 of the Atomic Energy Act, 1963, which restricts the handling of radioactive material only to the Centre and its companies.
Notably, an expert committee has recommended allowing nuclear fuel-related activities by private players, with operations controlled through a central licensing regime.
The power ministry may also get a larger role in nuclear power development, sharing responsibilities with the Department of Atomic Energy.
The legislation proposes changes to CLNDA (Civil Liability for Nuclear Damage Act) to ease strict liability norms that have deterred private participation, the sources said. The current operator liability cap may be reviewed.
Also, the current government liability limit of 300 million Special Drawing Rights (SDRs) may be revisited to make the framework more workable.
Finance Minister Nirmala Sitharaman, earlier in 2025, had announced the plans of opening up the nuclear power sector which has been restricted to public sector companies so far. Sitharaman also announced the Nuclear Energy Mission for research and development of Small Modular Reactors or SMR with an outlay of Rs 20,000 crore, and to operationalise five indigenously developed SMRs by 2033.
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