Nuclear Power FDI is becoming a key policy issue in India. The country aims to achieve 100 GWe of nuclear power capacity by 2047. However, reaching this target will require significant investment. Therefore, industry leaders are calling for reforms that can attract global capital while keeping nuclear assets under Indian control. At present, foreign direct investment in atomic energy remains restricted. However, recent policy discussions suggest a more balanced approach. Such reforms could help mobilise funds and support faster project development.
Allow Foreign Investment with Strong Safeguards
Industry stakeholders have proposed allowing up to 49% foreign investment in Nuclear Power Project SPVs. Under this model, Indian promoters would retain at least 51% ownership. They would also maintain operational control. As a result, nuclear assets would remain under Indian leadership. Foreign investment could be permitted through the government approval route. At the same time, strong safeguards would protect national interests.
These safeguards may include:
- Beneficial ownership disclosure
- FATF compliance requirements
- Investment only from approved partner countries
- Restrictions on sensitive jurisdictions
- Indian-majority board representation
- Oversight by the Department of Atomic Energy
Such measures can help balance investment needs with security requirements.
Nuclear Power FDI : Enable Global Technology & Capital Participation
India can also create opportunities for foreign technology providers. Foreign reactor vendors, fuel suppliers, and engineering companies could establish Indian-incorporated entities. These companies could supply technology, fuel, equipment, and services through long-term contracts. Importantly, foreign companies would retain ownership of their intellectual property. Meanwhile, Indian developers would gain access to advanced technologies.
| Head | Concern | Expectation |
|---|---|---|
| Foreign Direct Investment (FDI) in Nuclear Power Projects | FDI in atomic energy remains a prohibited sector under the current FDI Policy and FEMA framework. Although the AEC approved the concept of up to 49% foreign investment in April 2026, the required DPIIT and FEMA amendments are yet to be notified. There is also a need to clearly distinguish between FDI in nuclear power project SPVs and foreign participation in reactor technology, fuel supply, and related nuclear services. | Permit up to 49% FDI in Nuclear Power Project SPVs through the Government approval route from the first year of financial closure. The Indian promoter should retain at least 51% ownership and operational control. Eligible investors may include pension funds, sovereign wealth funds, infrastructure funds, and strategic foreign partners. |
| FDI Safeguards and Governance | Foreign investment in a strategic sector requires strong safeguards to protect national security, technology control, and Indian ownership of nuclear assets. | Introduce safeguards including beneficial ownership disclosure, FATF compliance, investment only from countries with civil nuclear cooperation agreements with India, prohibition on restricted jurisdictions, Indian-majority board control, an Indian-national Chief Nuclear Officer, and DAE oversight on reactor technology, fuel cycle, and change-of-control matters. |
| Foreign Technology Providers and Nuclear Supply Chain Participation | Global reactor vendors, fuel suppliers, and technology providers need a clear framework to participate in India’s nuclear expansion while protecting their intellectual property and commercial interests. | Allow foreign companies to establish Indian-incorporated Foreign-Owned Companies (FOCs) with 51–100% ownership under Indian law. These entities can provide reactor technology, fuel, engineering services, and equipment through long-term commercial contracts while retaining ownership of their core intellectual property. |
| Periodic Review of Nuclear Power FDI Policy | The long-term impact of foreign investment in nuclear power projects will need evaluation before any further liberalisation. | Establish a formal review mechanism after at least three years of implementation. Any proposal to increase FDI beyond 49% should be based on operational experience, security assessments, capital mobilisation outcomes, and international best practices. |
| Expected Outcome | Limited access to global capital and technology could slow India’s nuclear expansion plans. | A calibrated FDI framework will attract international capital, advanced technologies, and strategic partnerships while preserving Indian ownership and control, supporting the goal of achieving 100 GWe of nuclear power capacity by 2047. |
Experts also recommend a periodic review of the policy framework. This review could take place after a few years of implementation. It would assess investment outcomes, project performance, and security considerations.
A well-designed Nuclear Power FDI framework can attract global investors. It can strengthen international partnerships. Most importantly, it can support India’s goal of achieving 100 GWe of nuclear power capacity by 2047.
The insights presented here are based on recommendations developed at INEF 2026 to help accelerate India’s journey toward Mission 100 GWe.
