India's Draft Nuclear Framework Raises Concerns for Foreign Reactor Technology and Investment
A new draft framework in India, designed to attract foreign technology and investment into the nuclear sector, risks imposing additional approval requirements on foreign reactors. Experts suggest this could steer companies toward domestic technology, potentially limiting capital and expertise flow. India aims to increase its nuclear power capacity to 100 gigawatts (GW) over the next two decades, requiring an estimated $210 billion in investments.
Under the proposed framework, companies seeking to deploy imported reactors would need operational and licensing certifications from the country of origin, alongside separate design approval from India's atomic energy regulator before construction. This process could particularly affect Small Modular Reactor (SMR) technology, as most designs are only beginning commercial deployment globally, potentially limiting their eligibility.
The draft rules also leave several investment-related questions unresolved, including tariff determination, expected returns for investors, and minimum financial and technical qualifications for prospective operators. These ambiguities could delay investment decisions and project development. Companies have until September 4 to provide feedback on the draft regulations.