India plans to open uranium sector to private players to boost nuclear expansion

India is planning to open its uranium mining, import, and processing sector to private companies, ending a decades-long state monopoly, according to a Reuters report, citing government sources.

This move aims to attract billions of dollars and support the country’s ambitious goal to expand nuclear power capacity 12 fold by 2047.

In April, Reuters had reported that Prime Minister Narendra Modi’s government is also planning to relax requirements to allow foreign players to take a minority stake in power plants.

Currently, India’s government tightly controls uranium mining and processing due to concerns over nuclear material misuse, radiation safety, and strategic security. It will, however, continue to manage spent uranium reprocessing and plutonium waste handling, in line with international norms.

To meet rising demand for nuclear fuel amid this expansion, the government is drafting a regulatory framework that would allow private Indian firms to participate in mining, importing, and processing uranium. The policy is expected to be announced within the current fiscal year, reported Reuters.

In addition, private companies may be permitted to supply critical control system equipment for nuclear power plants, sources said.

Globally, countries such as Canada, South Africa, and the United States already allow private firms to mine and process uranium.

Domestic supply not enough

According to government data, India has an estimated 76,000 tonnes of uranium — enough to power 10,000 megawatts of nuclear energy for 30 years.

However, sources cautioned that domestic reserves would cover only about 25% of the fuel needed to support the country’s planned nuclear expansion. The remaining demand would require imports, along with a significant boost to uranium processing capacity.

In its February 1 budget announcement, the government revealed its intention to open up the nuclear sector, though it did not provide specifics.

The move has since prompted several major Indian conglomerates to begin drafting investment plans.

Still, experts warn that implementing the policy may face hurdles, as revising existing legislation could prove legally and politically complex.

“It’s a major and bold initiative by the Indian Government which is critical for achieving the target,” Reuters quoted Charudatta Palekar, independent power sector consultant, as saying.

“The challenge will be to define quickly the rules of engagement with private sector,” Palekar added.

New Delhi will have to change five laws, including the ones regulating mining and electricity sectors and India’s foreign direct investment policy to enable private participation in many identified activities, the sources said.

With inputs from agencies