India Considers Foreign Investment in Nuclear Power Plants
Deal News | Apr 25, 2025 | Zawya
India is contemplating allowing foreign companies to own up to 49% stakes in its nuclear power plants. This potential policy shift aims to accelerate India's move away from coal towards cleaner energy alternatives. The change comes amid increasing pressure to meet environmental commitments and technological advancements in nuclear energy. Historically, India's nuclear sector has been tightly controlled, with no foreign investment permitted, largely due to liability concerns. However, changes in liability laws alongside foreign investment could significantly boost India's nuclear capacity. Companies like Westinghouse and GE-Hitachi have expressed interest, and Indian corporations such as Reliance are in discussions to invest. The government plans to present necessary legal amendments in the monsoon parliamentary session. These amendments, once enacted, aim to enhance private sector participation, allowing private entities to operate independently in the sector.
Sectors
- Nuclear Energy
- Foreign Direct Investment (FDI)
Geography
- India – Central to the article as the country is considering changes to laws governing nuclear energy investment.
- United States – Linked due to historical nuclear agreements with India and potential foreign corporate interest from U.S.-based entities.
Industry
- Nuclear Energy – Refers to the sector involving the generation of electricity using nuclear reactions, relevant due to India's potential policy changes to allow foreign investments in its nuclear power sector.
- Foreign Direct Investment (FDI) – Involves foreign entities investing in business interests in another country, relevant here as India considers allowing foreign companies to invest in its nuclear industry.
Financials
- $26 billion – The approximation of investment that Indian conglomerates are discussing for the nuclear sector.
- 100 gigawatts – The government’s target for expanded nuclear power capacity by 2047.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Government of India | Regulator/Policymaker | Government | Considering opening the nuclear sector to foreign investment and making necessary legal amendments. |
| Westinghouse Electric | Potential Technology Partner | Company | One of the foreign companies interested in participating in India’s nuclear projects. |
| GE-Hitachi | Potential Technology Partner | Company | Another foreign company interested in India's nuclear projects. |
| Electricite de France (EDF) | Potential Technology Partner | Company | Interested in participating in India's nuclear power projects. |
| Rosatom | Potential Contractor/Service Provider | Company | Interested in India's nuclear power projects. |
| Reliance Industries | Potential Investor | Company | Indian conglomerate discussing investment in the nuclear power sector. |
| Tata Power | Potential Investor | Company | Indian company involved in discussions to invest in the nuclear sector. |
| Adani Power | Potential Investor | Company | Considering investment in the nuclear power industry in India. |
| Vedanta Ltd | Potential Investor | Company | Holding discussions about investment in India's nuclear sector. |