Why Is Parliament Pushing The Nuclear Energy Bill? The Full Story From Accountability To Necessity

India is preparing to introduce the Nuclear Energy Bill 2025 in the winter session of Parliament in an effort to update the nearly 63-year-old Atomic Energy Act, which limits nuclear operations only to the central government and its undertakings. Authorities believe that while the 1962 law ensured control and accountability, it now restricts India’s ability to expand nuclear power to meet rising energy needs. The government’s plan aims to balance strict responsibility with practical reforms.

Does Current Law Block Private Participation?

At present, the Atomic Energy Act prevents private companies and state governments from being part of nuclear projects. Only the central government or its created entities can run nuclear plants. This structure was designed to prevent misuse of sensitive materials and ensure full accountability. However, experts say that this restriction now slows down progress, especially when India is aiming for higher clean energy targets.

Why Is This Reform Needed Today?

Finance Minister Nirmala Sitharaman stated in the 2025 budget speech that India must develop at least 100 gigawatts of nuclear power capacity by 2047 to meet future demand. Right now, India generates only 8,180 megawatts from nuclear sources. Without private support, achieving the long-term target may not be possible. This is why the government is preparing to allow controlled private entry while retaining safety supervision.

How Will Accountability Be Maintained?

The government does not want to compromise safety. It plans to update rules so that even if private companies invest, critical areas like reactor design, safety checks and operational control will stay with NPCIL. The existing Civil Liability for Nuclear Damage Act (CLNDA) ensures that operators must compensate in case of accidents. While major amendments may not be part of this session, the government may soften some provisions later to encourage participation without reducing safety.

Why Are Existing Rules Considered Too Strict?

Under CLNDA 2010, if a nuclear accident occurs, the operator has to provide compensation up to ₹1,500 crore even without proven fault. If loss exceeds that, the government steps in. Global companies feel these rules are too rigid and financially risky, which is why many have stayed away from India. Officials now suggest adopting a balanced structure where accountability remains strong but participation becomes practical.

How Will The New Bill Change Opportunities?

The draft proposal may allow any company registered under the Companies Act to obtain a licence for nuclear energy production. The Energy Ministry may share some responsibilities alongside the Department of Atomic Energy. Ten reactors are already being built and ten more have been approved. The goal is to increase the capacity to 22,480 megawatts by 2031–32. Private companies may invest while NPCIL continues to handle core operations.

What Does This Mean For India’s Future?

The government says nuclear energy is stable, cleaner than coal and available round the clock. This reform is expected to be a major step in reducing fossil fuel use and meeting energy demands responsibly. While accountability remains at the centre of the policy, the growing need for energy is driving this legislation. If the bill is passed, it may become one of the most significant changes in India’s energy sector, helping the country move from controlled limitation towards responsible expansion.