India Moves to Privatize Uranium Mining and Processing in Nuclear Sector

The Indian government, led by Prime Minister Narendra Modi, is planning to allow private companies to engage in the mining, importation, and processing of uranium. This shift signifies a move away from a long-standing state monopoly over the nuclear industry, aiming to inject billions of dollars into the sector.

The government's ambitious goal is to increase the nuclear power production capacity by twelve times by the year 2047. It is also making changes to regulations to permit foreign entities to hold minority stakes in nuclear power plants, a decision that was highlighted in reports from April. Should these plans come to fruition, nuclear energy is projected to meet approximately 5% of India's overall power demand, based on government estimates.

Traditionally, the state has kept tight control over uranium-related activities due to concerns about the potential misuse of nuclear materials, safety issues relating to radiation, and the need for strategic security. This new direction indicates a significant shift in policy as India seeks to expand its energy resources.