India has enacted landmark legislation to open its nuclear energy sector to private investors, aiming to mobilize roughly $210 billion to reach a total capacity of 100 gigawatts (GW) by 2047.

Passed in December 2025, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act effectively ends a decades-old state monopoly originally established under the Atomic Energy Act 1962. According to a new report from YCP, the law permits private Indian firms to build, own, operate, and decommission nuclear power plants. Foreign participation is also permitted, provided it is channeled through joint ventures with domestic entities.

India currently operates nearly 9 GW of nuclear capacity. To achieve its ambitious 2047 target, the government must add another 90 GW over the next 22 years, accelerating the historical pace of deployment by approximately tenfold. Relying solely on public sector funding and government-to-government agreements will not be enough to sustain this growth, making private capital a necessity.

“A tenfold increase in nuclear capacity cannot realistically be delivered by a single operator within two decades,” the YCP firm cautioned.

Under the revised framework, private businesses can engage across the industry’s value chain, including power generation, manufacturing, engineering, structured finance, and operations and maintenance. However, the government will maintain exclusive authority over strategic operations, namely uranium and thorium mining, heavy water production, radioactive waste management, and fuel reprocessing.

The SHANTI Act also introduces a much-anticipated liability framework to resolve legal uncertainties that previously deterred domestic backers and global technology providers. Operator liability is now capped based on the size of the reactor, while supplier liability is strictly limited to contractual provisions or cases of wilful misconduct.

YCP anticipates lucrative opportunities emerging in large grid-connected projects, advanced reactor development, component manufacturing, and captive industrial reactors.

Despite these legal breakthroughs, the report cautioned that legislative reform alone will not guarantee immediate investment. The sector still faces significant hurdles regarding tariff structures, regulatory clarity, supply chain readiness, financing mechanisms, insurance arrangements, and public acceptance.

“Whilst the SHANTI Act has opened the door to private participation in India by removing legal prohibitions, the full commercial scaffold required for success is not yet in place,” the report concluded.