India is preparing to dismantle its decades-long state monopoly over uranium operations, setting the stage for private companies to mine, import, and process the critical fuel for the first time. The move marks a major policy shift aimed at drawing billions of dollars in private investment and accelerating the nation’s nuclear energy growth.
Under the government’s plan, nuclear power capacity will be increased twelvefold by 2047, enough to supply roughly 5% of India’s total electricity needs. A new regulatory framework will enable private Indian firms to participate in uranium extraction, imports, and processing. However, the reprocessing of spent fuel and management of plutonium waste will remain under strict government control, aligning with global safety norms.
The draft policy, expected to be released in fiscal year 2026, will also open the door for private firms to provide key control system equipment to nuclear plants. Foreign companies may be allowed to take minority stakes in power generation projects, signaling a further softening of investment restrictions in the sector.
This shift comes in response to a looming fuel shortage. India’s uranium reserves are estimated at about 76,000 metric tons — enough to meet only around 25% of the anticipated demand from the planned reactor expansion. To close this gap, imports will be necessary, and domestic processing infrastructure will need to be scaled up significantly.
While the legal process will be complex — requiring amendments to mining laws, nuclear energy statutes, and foreign direct investment rules — officials say the reforms are essential to meet long-term energy security goals. Countries like Canada, South Africa, and the United States already permit private-sector participation in uranium mining and processing, providing successful models for India’s transition.
If implemented, this policy could mark one of the largest structural shifts in India’s nuclear history, laying the groundwork for private capital to play a defining role in the nation’s clean energy future.
