Experts warn that a new draft framework could weaken India’s most significant nuclear reform in decades by adding extra approval steps for foreign reactors, a move that may push companies to favor domestic technology over imports and restrict the inflow of fresh investment and specialized know-how.

The draft framework builds on New Delhi’s new nuclear law, passed last year, which has opened up the country’s once heavily regulated nuclear sector to private companies and is intended to attract foreign technology and investment.

India is banking on nearly $210 billion in anticipated industry investments to expand its nuclear power capacity almost tenfold to 100 gigawatts (GW) over the next twenty years, forming a key pillar of its strategy to cut reliance on coal, which continues to generate the majority of the nation’s electricity.

NPCIL, the country’s sole operator of nuclear power plants and holder of nuclear technology, is pursuing a 14-GW expansion program through 2032, making private capital and advanced reactor technologies crucial to meeting the government’s 100-GW nuclear power target.

Indian conglomerates such as Tata Power, Adani Power and Reliance Industries, along with foreign companies including Russia's Rosatom, France's EDF and U.S.-based GE Hitachi, have engaged in discussions with the government.

However, industry insiders, who asked to remain anonymous because the consultation is still underway, said they would wait for the final set of rules before committing to investments.

Under the proposed framework, firms planning to install imported reactors must obtain operational and licensing approvals from the country of origin, along with separate design clearance from India’s atomic energy regulator, before any construction can commence.

“We are retreating from the potential of the new nuclear law, which could position India as a leader in the global nuclear revival, if its regulations draw distinctions between homegrown technology and foreign technology, and allow overseas technology to be considered only when there is an existing operational plant,” said Suhaan Mukerji, managing partner at law firm PLR Chambers.

He advises both Indian and international companies assessing prospects in India’s nuclear growth strategy, including the impact of the proposed regulations.

Previously, when the sector was fully under state control, permissions for sites, excavation, and construction could move forward at the same time, even as the final design approval was still pending, Mukerji said.

Developers may now file an application, but it will not be processed until design approval has been secured, he said. He stated that this would hinder achieving the government’s established target.

Shri Venkatesh, a partner at the law firm SKV that counsels Indian energy companies, noted that the lack of a mandatory schedule for design approvals could slow down project development.