US cos ready to support India's nuclear power capacity: Gor

India’s recent passage of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act marks a pivotal shift in its nuclear energy landscape, creating opportunities for U.S. firms to engage in reactor development, fuel services, and advanced technology partnerships. The law reforms liability frameworks by eliminating supplier liability for nuclear accidents, aligning India's regulatory approach closer to global norms under the Paris and Vienna conventions. Previously, the 2010 Civil Liability for Nuclear Damage Act had deterred foreign investment by exposing suppliers to legal risks, but the SHANTI Act now caps operator liability at $12 million to $360 million, depending on plant size. This change is expected to ease participation by U.S. companies, particularly in small modular reactor (SMR) projects and research collaborations.

The act also opens India's nuclear sector to private and joint-venture participation, ending state monopolies on reactor operations. Foreign firms can now hold minority stakes (up to 49%) in projects, enabling partnerships with Indian entities like the Nuclear Power Corporation of India Limited (NPCIL) according to Orf America analysis. However, challenges remain. India’s 100 GW nuclear capacity target by 2047 faces hurdles, including high capital costs, long construction timelines, and competition from cheaper renewables. The levelized cost of nuclear energy in India is estimated at approximately ₹6 per kWh, significantly higher than solar-plus-storage bids of ₹3.1–3.5 per kWh.

Workforce constraints further complicate execution. India currently trains about 300 nuclear professionals annually, far below the 38,000 needed to staff a 100 GW fleet. U.S. firms with expertise in digital systems, SMRs, and workforce training could play a role in addressing these gaps according to Orf America analysis.

While the SHANTI Act removes key barriers, sustained progress will depend on regulatory clarity, credible indemnity mechanisms, and alignment with economic realities. For U.S. companies, the opening represents a strategic opportunity to integrate advanced technologies into India’s energy transition, though long-term success will require navigating both market and operational complexities.