India Passes Nuclear Energy Act to Modernize and Expand Nuclear Sector
India's Nuclear Energy Act, 2025, has been enacted to modernize the nuclear sector by allowing private entities to build and operate nuclear facilities, a shift from previous government-only restrictions. The Act establishes a regulatory framework through the Atomic Energy Regulatory Board, defines civil liability for nuclear damage, and facilitates international collaboration, including potential phased Foreign Direct Investment. Key provisions also focus on safety authorizations and leveraging India's thorium reserves.
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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.
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