India set to allow its private firms to mine and import uranium to help nuclear expansion

India is set to end its decades-old state monopoly over the nuclear sector by allowing private firms to mine, import, and process uranium. This strategic move is part of the government's plan to attract billions of dollars in investment and significantly boost nuclear power production. The government aims to expand nuclear power capacity by 12 times by 2047, which would provide 5% of India's total power needs. To facilitate this, a regulatory framework will be created to allow private Indian firms to participate in these activities. The government will, however, retain control over the reprocessing of spent uranium fuel and the management of plutonium waste, in line with international practices. The proposed policy, which may be made public in FY26, will also permit private players to supply critical control system equipment for nuclear power plants.
This initiative is crucial because domestic uranium resources, estimated at 76,000 tonnes, are only projected to meet about 25% of the demand from the planned expansion. The remaining fuel will need to be imported, and processing capacity will need to increase. The government has also indicated it will relax requirements to allow foreign players to hold a minority stake in power plants. This bold initiative is a major step toward achieving the country's nuclear power targets. While amending the necessary laws, including those regulating mining and foreign direct investment, could be complex, the government is committed to defining the rules for private sector engagement. Countries like Canada, South Africa, and the United States already permit private firms to mine and process uranium.

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