India to let private firms mine and import uranium

India’s groundbreaking decision to allow private companies to mine and import uranium marks a historic shift away from decades of state monopoly in the nuclear sector, potentially unleashing billions of dollars in private investment while fundamentally transforming the country’s energy landscape. This bold policy initiative represents Prime Minister Modi’s most ambitious nuclear expansion strategy yet, aiming to multiply India’s nuclear capacity twelvefold by 2047 and position atomic energy as a cornerstone of the nation’s clean energy transition. The move signals India’s recognition that achieving its nuclear power goals requires private sector expertise, capital, and efficiency, breaking with traditional security-focused restrictions that have long constrained the industry’s growth potential and limited access to global uranium markets.

Nuclear Sector Liberalization

India aims to allow private firms to mine, import and process uranium as part of plans to end a decades-old state monopoly over the nuclear sector and bring in billions of dollars to boost the industry, two government sources said.

Prime Minister Narendra Modi’s government plans to expand nuclear power production capacity by 12 times by 2047 and it is also relaxing requirements to allow foreign players to take a minority stake in power plants, Reuters reported in April.

If it meets its expansion goal, nuclear will provide 5% of India’s total power needs, according to government estimates.

Until now, the state has maintained control over the mining, import and processing of uranium fuel because of concerns over the possible misuse of nuclear material, radiation safety and strategic security.

It will retain its grip on reprocessing spent uranium fuel and managing plutonium waste, in line with global practice.

Regulatory Framework Development

But to help meet a surge in demand for nuclear fuel as it expands nuclear power production, the government plans to draw up a regulatory framework that would allow private Indian firms to mine, import and process uranium, the two government sources told Reuters.

They asked not to be named because the plans are not yet public.

The proposed policy, which the sources said was likely to be made public in the current fiscal year, will also permit private players to supply critical control system equipment for nuclear power plants, they said.

The Finance Ministry, Department of Atomic Energy and Prime Minister’s Office did not respond to Reuters’ requests for comment.

Outside India, countries including Canada, South Africa and the United States allow private firms to mine and process uranium.

Domestic Supply Challenges

DOMESTIC SUPPLY IS NOT ENOUGH

India has an estimated 76,000 tonnes of uranium enough to fuel 10,000 megawatts of nuclear power for 30 years, according to government data.

But the sources said domestic resources would only be able to meet about 25% of the projected increase. The rest would have to be imported and India would need to increase its processing capacity.

In announcing its budget on February 1, the government made public its plans to open up the sector without giving details.

Some of India’s big conglomerates subsequently began drawing up investment plans.

Implementation Challenges

But analysts said amending the legislation could be complex.

“It’s a major and bold initiative by the Indian Government which is critical for achieving the target,” said Charudatta Palekar, independent power sector consultant.

“The challenge will be to define quickly the rules of engagement with private sector.”

New Delhi will have to change five laws, including the ones regulating mining and electricity sectors and India’s foreign direct investment policy to enable private participation in many identified activities, the sources said.

India’s decision to open uranium mining and processing to private firms represents a watershed moment that could accelerate the country’s nuclear ambitions while fundamentally reshaping its energy security strategy. The success of this bold initiative will depend on the government’s ability to balance commercial interests with stringent safety and security requirements, ultimately determining whether India can achieve its ambitious goal of making nuclear power a significant contributor to its clean energy future.

GCN.com/Reuters.

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