Union Cabinet Approves Private Investment In Nuclear & Insurance Sectors - Key Details

The Union cabinet approved sweeping changes to its atomic energy laws and fully opened the insurance sector to foreign investors, two government sources said on Friday, key policy moves aimed at attracting billions of dollars in two critical sectors.

As part of the SHANTI Bill, infusion of private investment in exploration of atomic minerals, fuel fabrication, equipment manufacturing, and potentially even aspects of plant operations will be allowed, breaking the monopoly of Department of Atomic Energy (DAE). 

India, which plans to expand nuclear power capacity 12-fold by 2047, is relaxing rules to end a decades-old state monopoly and overcome a stringent liability provision to allow private participation and attract foreign technology suppliers.

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The changes in the nuclear sector are a part of a larger push to boost nuclear capacity to 100 gigawatts by 2047, as the country looks to cut coal dependence and meet its climate commitments.

In the insurance sector, the government has proposed increasing foreign direct investment to 100% from the existing 74%. This change was proposed as per the new Insurance Sector Bill - (Sabka Bima, Sabki Raksha Bill 2025) to expand coverage and protection for citizens. 

Both changes to laws are listed for approval in the ongoing winter session of parliament. 

The framework of SHANTI Bill is meant to bolster India's future-centric decarbonisation strategy, especially as the south Asian nation seeks to reduce dependence on fossil fuels and stabilise its energy mix.

What's New Under SHANTI Bill?

• Liability responsibilities are expected to be clearly delineated. 
• Insurance-based liability caps will be introduced. 
• The centre will provide backstopping after a defined threshold.