NITI Aayog is pushing nuclear power reforms to attract private players, cutting capital costs while opening up new demand for electronics in clean energy and EV infrastructure.
Federal policy think tank Niti Aayog is drafting amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act to allow private-sector participation in nuclear power. The move follows the Union Budget 2025–26, where Finance Minister Nirmala Sitharaman announced the Nuclear Energy Mission to strengthen India’s clean-energy base.
Highlighting the importance of the reforms, B. V. R. Subrahmanyam, CEO of Niti Aayog, said:
“Nuclear power would be a key driver for sustainability and bolstering climate finance in the country.” He confirmed that Niti Aayog was “closely” working on the amendments.
For the electronics industry, the opening of nuclear power and the entry of private players are expected to accelerate demand for nuclear plant instrumentation and control systems, power electronics for grid integration, smart grids for efficient transmission, and high-reliability electronics for reactor safety. Linked EV mega-projects will further increase requirements for battery management systems, semiconductors, and charging infrastructure electronics.
Subrahmanyam stressed the urgent need to lower the cost of capital for clean-energy projects. He noted that renewable projects in India face financing costs of about 15 per cent, compared with 8 per cent in Germany. Banks remain reluctant to finance electric buses and trucks due to their low resale value.
To reduce risk and attract investment, Niti Aayog is examining sovereign guarantees and co-lending models. “Sovereign guarantees help reduce uncertainty associated with sustainable projects,” Subrahmanyam explained.
He also urged states and agencies to propose more large-scale sustainability initiatives. “We need more projects, more billion-dollar projects. Which state has tried to start a project to convert all its vehicles into EVs by a certain date? There is abundant funding available from institutions such as the World Bank, Asian Development Bank, and others. What we need is a supply of these projects to generate demand for capital,” he said.
