Government to end monopoly on uranium mining, says report

New Delhi: The Indian government is preparing to allow private companies to mine, import, and process uranium, a move aimed at ending the decades-old state monopoly in the sector, according to a report by Reuters citing two senior government sources.

The policy change is part of a broader strategy by Prime Minister Narendra Modi’s administration to expand India’s nuclear power generation capacity by 12 times by 2047.

Opening the doors for private and foreign players

Until now, all activities involving uranium from mining to processing have been under strict state control due to concerns over radiation safety, national security, and the risk of nuclear material misuse.

However, the Reuters report states that the government now intends to draw up a regulatory framework that would permit private Indian firms to participate in uranium-related activities. Additionally, the government plans to relax rules to allow foreign companies to take minority stakes in nuclear power projects, potentially bringing in billions in investments.

India will still retain exclusive control over the reprocessing of spent uranium fuel and plutonium waste, aligning with global safety norms.

Fuel demand pushes policy shift

India’s current uranium reserves are estimated at 76,000 tonnes, which could support 10,000 MW of nuclear power generation for the next 30 years. But as nuclear power expands, domestic supply is expected to cover only 25% of the fuel required, with the remaining 75% needing to be imported and processed.

This projected shortfall has prompted the government to rethink its stance and prepare for greater private sector participation in fuel supply and technology.

When will the policy announcement be made?

The proposed policy could be made public within the current financial year, the sources told Reuters.

The upcoming policy is also expected to allow private firms to supply critical control systems and equipment for nuclear power plants, a domain currently restricted to government-run entities.

Legal changes ahead

To bring the plan into action, the government will need to amend at least five major laws, including those governing mining, electricity, and foreign direct investment (FDI) rules, the report added.