India is set to enter a new phase in its civilian nuclear programme with the operationalisation of the SHANTI Act (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act), a legislative reform that is expected to open the sector to greater private participation while retaining government control over strategic and sensitive nuclear activities.
According to sources familiar with the government’s deliberations, the rules required to operationalise the Act are expected to be notified in the coming weeks, paving the way for domestic and international companies to formally enter what industry executives describe as one of the world’s most significant emerging nuclear power markets.
The timing is significant with the global nuclear industry witnessing a revival after years of stagnation. According to the World Nuclear Association, more than 100 commercial reactors have entered operation over the past two decades, while over 100 ageing reactors have been permanently shut down. Around 80 reactors are currently under construction globally and more than 120 are in various stages of planning, reflecting renewed investment driven by energy security, climate commitments and rising electricity demand.
Against this backdrop, India is emerging as one of the few major markets expected to add substantial nuclear capacity over the coming decades.
Even before the regulatory framework has been notified, global reactor suppliers have begun positioning themselves.
In May, a high-level delegation comprising executives from the U.S. Nuclear Energy Institute (NEI) and the U.S.-India Strategic Partnership Forum (USISPF) visited India and held discussions with senior government officials, the Department of Atomic Energy and several leading Indian conglomerates including Reliance Industries, Adani Group, Tata Power, JSW Energy, Vedanta and Larsen & Toubro, thus signalling Washington’s intent to participate in India’s expanding civilian nuclear programme.
According to people familiar with the developments, French companies have also begun exploring potential partnerships ahead of the operationalisation of the SHANTI Act.
Russia, through Rosatom, already enjoys a longstanding presence in India through the Kudankulam Nuclear Power Project and is expected to remain a major contender for future contracts. South Korean companies are also expected to evaluate opportunities once the regulatory framework is notified.
The renewed international interest comes at a time when the global nuclear construction market has become increasingly concentrated.
According to the International Energy Agency, 52 reactors began construction worldwide between 2017 and 2024. Of these, 25 are based on Chinese technology and 23 on Russian technology. Together, Chinese and Russian reactor designs account for nearly the entire global pipeline of new construction starts during this period, highlighting how the international market has become dominated by a handful of suppliers.
China, however, is not considered a realistic participant in India’s civilian nuclear expansion because of broader strategic and security considerations. That leaves Russia, the United States, France and South Korea as the principal international contenders for future projects under the SHANTI Act.
Analysis of historical international cost benchmarks reveal substantial differences among these suppliers. Benchmark estimates published by the OECD Nuclear Energy Agency place overnight capital costs for large reactors at approximately US$2,157 per kilowatt for South Korean technology, US$2,271 per kilowatt for Russian technology, US$2,778 per kilowatt for comparable Indian projects, US$4,013 per kilowatt for French technology and US$4,250 per kilowatt for U.S. technology.
On that basis, a 1,000 MW reactor would historically involve an overnight construction cost of roughly US$2.16 billion using South Korean technology, compared with about US$4.25 billion for a comparable U.S. reactor, before financing costs are added.
While these figures do not represent future bid prices for India, they illustrate the historical differences in capital costs among major reactor suppliers.
South Korea has emerged as one of the fastest-growing nuclear exporters in recent years. Korea Hydro & Nuclear Power (KHNP) and Korea Electric Power Corporation (KEPCO) established their international credentials through the Barakah Nuclear Power Plant in the United Arab Emirates, a four-reactor project widely regarded as one of the most successful recent nuclear export programmes. The Korean industry has subsequently expanded its international footprint by leveraging its reputation for competitive pricing and project execution.
Russia remains the world’s dominant exporter of commercial nuclear reactors. According to OECD analysis, Russian technology accounts for about 58% of the global nuclear export market currently under construction. Rosatom is executing or participating in projects across India, Bangladesh, Türkiye, Egypt, Hungary and several other countries through integrated packages that combine reactor construction, financing, fuel supply and long-term operational support.
France continues to promote EDF’s reactor technology internationally through projects such as Hinkley Point C in the United Kingdom and the proposed Jaitapur Nuclear Power Project in Maharashtra, while the United States is expected to compete primarily through Westinghouse’s AP1000 reactor technology, which has been deployed in the United States and China and remains part of India-U.S. civil nuclear discussions.
Current and former officials familiar with India’s nuclear programme said the government is expected to evaluate future proposals on multiple parameters rather than capital cost alone. These include financing arrangements, technology transfer, localisation, fuel supply, execution capability, lifecycle support and long-term operational reliability.
The officials said another important consideration is supplier diversification. Given that nuclear reactors typically remain operational for six to eight decades and require continuing technical support, fuel services and maintenance, they said India is unlikely to favour excessive dependence on any single overseas supplier. According to them, maintaining competition among multiple qualified vendors would, rather than allowing one single country to take all, will strengthen India’s negotiating position while supporting long-term energy security and strategic autonomy.
Officials emphasised that the principle applies irrespective of the supplier country and is not directed at any one nation. Rather, they said, it reflects India’s long-standing approach of balancing strategic partnerships with commercial competitiveness in sectors of critical national importance.
With the SHANTI Act moving from legislation to implementation, the next phase is expected to determine not only which international companies secure a foothold in India’s civilian nuclear sector, but also the procurement principles that will shape one of the country’s most consequential infrastructure programmes for decades to come.
