India will allow private companies to mine, import, and process uranium, ending a decades-long state monopoly, according to reports, citing government sources. This move aims to attract billions of dollars and support the country’s plan to expand nuclear power capacity twelve-fold by 2047.

Currently, the government tightly controls uranium mining and processing to prevent misuse of nuclear material, ensure radiation safety, and protect strategic security. However, it will continue to manage spent uranium reprocessing and plutonium waste handling, in line with international norms.

Private and Foreign Participation

In April, Reuters reported that Prime Minister Narendra Modi’s government plans to relax rules to allow foreign firms to take minority stakes in nuclear power plants. To meet rising fuel demand, the government is drafting rules to let private Indian firms mine, import, and process uranium. Sources say the policy could be announced within the current fiscal year.

Moreover, private firms may also supply critical control system equipment for nuclear power plants. Globally, countries like Canada, South Africa, and the United States already allow private companies to mine and process uranium.

Domestic Supply Limited

According to government data, India has around 76,000 tonnes of uranium, enough to produce 10,000 megawatts of nuclear energy for 30 years. However, domestic reserves would cover only 25% of the fuel needed for the planned expansion. Therefore, the rest would require imports and an increase in uranium processing capacity.

The February 1 budget signaled the government’s intent to open the nuclear sector, although it did not give details. Since then, major Indian conglomerates have started preparing investment plans.

Challenges Ahead

Experts warn that the policy may face hurdles because changing existing laws could be legally and politically complex. “It’s a major and bold initiative by the Indian Government which is critical for achieving the target,” Reuters quoted Charudatta Palekar, an independent power sector consultant, as saying. Furthermore, he added, “The challenge will be to define quickly the rules of engagement with the private sector.”

To implement the plan, New Delhi must amend five laws, including those regulating mining, electricity, and foreign direct investment, sources said.