India is preparing to end its long state monopoly over the uranium sector by allowing private firms to mine, import and process the nuclear fuel, in a move aimed at attracting billions of dollars in investment and accelerating the country’s nuclear energy ambitions. A first hint about the was first given during the Union Budget 2025-26 announcement.

Outlining a significant push towards nuclear energy as part of India’s long-term energy transition strategy, FM Nirmala Sitharaman had announced an ambitious target of 100 GW nuclear power capacity by 2047. A key highlight of the budget was the launch of a Nuclear Energy Mission, which is focused on research and development of Small Modular Reactors (SMRs).

For this, the Centre allocated Rs 20,000 crore, aiming to develop at least five indigenously designed and operational SMRs by 2033.

India’s nuclear expansion: What is the uranium plan?

News agency Reuters reported that India is working towards expanding its nuclear capacity, citing two senior government sources. However, specific details about the plan haven’t been shared yet. The proposed policy is expected to be made public within the current fiscal year.

PM Narendra Modi’s government has set an ambitious target to expand nuclear power generation capacity twelvefold by 2047. If successful, nuclear energy would account for 5% of India’s total electricity needs, according to government estimates. To support this expansion, the government is also relaxing norms.

The Centre is mulling over allowing foreign entities to hold minority stakes in nuclear power plants. To meet the anticipated surge in demand for nuclear fuel, the government is drafting a regulatory framework that would enable private Indian companies to participate in uranium mining, importation and processing.

However, the state will continue to retain exclusive control over the reprocessing of spent uranium fuel and the management of plutonium waste, in line with international safety and security protocols.

Uranium reserves in India: How much do we have?

India currently has about 76,000 tonnes of domestic uranium reserves, which officials caution that they would only meet about 25% of the fuel required for the planned expansion. The remainder would need to be sourced through imports, alongside a significant enhancement of the country’s uranium processing capacity.

Conventionally, the government has maintained a monopoly over uranium due to concerns about radiation safety, strategic security and the potential misuse of nuclear material. The upcoming reforms aim to balance these concerns with the need to diversify India’s energy mix and stimulate industrial growth in the nuclear sector.

To allow foreign entities in the sector would mean defining the rules of engagement with private sector, which would be a challenge. Further, India 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.