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India's Nuclear Energy Act, 2025, recently passed and published on December 21, 2025, aims to modernize the country's nuclear sector by facilitating private sector participation. The Act allows non-Government entities to apply for licenses to build, own, and operate nuclear facilities, contrasting with the previous framework which restricted such activities to the Government.

Key provisions include establishing a regulatory framework through the Atomic Energy Regulatory Board (AERB), defining civil liability for nuclear damage, and creating compensation mechanisms. The Act also emphasizes safety authorizations for radiation-related activities and aims to leverage India's thorium reserves.

Liability limits for operators are linked to the reactor's thermal power, ranging from INR 1 billion to INR 30 billion, with the Government assuming liability for damages exceeding these amounts. The Act permits patenting inventions related to peaceful nuclear applications and may allow phased Foreign Direct Investment (FDI) in the sector, enhancing opportunities for international collaboration.