India’s push for nuclear energy can support climate goals but ground execution will determine its impact

The Sustainable Harnessing and Advancement of Nuclear Technology for India (Shanti) Act of 2025 is a watershed moment in making nuclear power a part of the country’s decarbonization strategy. It paves the way to achieve a target of 100GW of nuclear power capacity by 2047, while removing structural and legal hurdles that constrained investment, slowed capacity addition and kept the sector technologically insular.The Act heralds three transformative shifts. First, it opens the door for private sector participation in nuclear power generation, equipment manufacturing and fuel-cycle services.

Second, it attempts to rationalize India’s nuclear liability regime that deterred foreign suppliers and investors. Third, it makes space for advanced nuclear technologies, such as modular reactors (SMRs) and next-generation reactors. So far, nuclear power has been the preserve of public sector entities like Nuclear Power Corporation of India Ltd (NPCIL).

Rooted in national security considerations, this policy constrained India’s access to capital and innovation. Now private players would be able to forge partnerships, form joint ventures and play manufacturing roles, while the state retains control over sensitive aspects of the fuel cycle. This calibrated liberalization acknowledges that public finance alone cannot support the scale of nuclear capacity required for a low-carbon economy.

From a private investor’s perspective, this legislative change is welcome but not sufficient. Nuclear projects are capital-intensive with long gestation periods. Their viability depends on predictable tariffs, long-term power purchase agreements and the assurance of contract enforcement.