Finance Minister Nirmala Sitharaman on Tuesday, 19 May met a high-level delegation of the US nuclear industry in New Delhi, urging leading American companies to explore long-term investment and technology partnerships in India's rapidly opening nuclear energy sector. The delegation included representatives of the Nuclear Energy Institute (NEI) and the US-India Strategic Partnership Forum.

Key Developments from the Meeting

At the meeting, Sitharaman underscored that technology collaborations and strategic partnerships can serve as critical drivers of innovation and resilience in India's nuclear ecosystem. She encouraged participants to actively pursue engagement opportunities and long-term collaboration in the domain.

Crucially, the Finance Minister informed the delegation that Foreign Direct Investment (FDI) of up to 49 per cent is now permitted in nuclear power projects — a significant policy shift aimed at drawing global capital into a sector that was historically closed to private and foreign participation.

The SHANTI Act and Reform Framework

Sitharaman highlighted India's landmark Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, outlining the structural reforms introduced under this framework. The SHANTI Act is designed to accelerate India's clean energy transition, deepen technology partnerships, and enhance investment inflows into the country's nuclear ecosystem. It also enables greater private sector participation in scaling up nuclear power generation capacity.

India's Fast Breeder Reactor Milestone

The meeting came against the backdrop of a landmark achievement: India's indigenously designed 500 MWe Prototype Fast Breeder Reactor (PFBR) at Kalpakkam in Tamil Nadu achieved first criticality on 6 April, positioning India to become only the second country in the world — after Russia — to operate a commercial-level fast breeder reactor. This milestone moves India closer to leveraging its vast thorium reserves in the third stage of its national nuclear strategy.

Notably, while several nations — including the USA, the UK, France, Japan, Germany, and China — have historically developed or operated experimental fast reactors, most of those programmes are currently shut down. Russia remains the only country with operational commercial fast breeder reactors.

Nuclear Mission and Small Modular Reactors

India's broader nuclear ambitions are anchored in a target of 100 GW nuclear power capacity by 2047. Under the recently launched Nuclear Mission, an allocation of ₹20,000 crore has been earmarked, with five Small Modular Reactors (SMRs) planned for commissioning by 2033. SMRs are seen as particularly suited for captive power generation in industries, dense urban zones, remote areas without grid connectivity, and for repurposing retiring thermal plants.

With the SHANTI Act, the 49% FDI window, and the Nuclear Mission in place, India is signalling a decisive pivot toward nuclear energy as a cornerstone of its clean energy future — and is actively courting US expertise to help build it.