India could establish a regulatory authority to oversee the nuclear fuel supply chain and waste management as the country prepares to allow private sector participation in atomic energy. Government officials revealed that a stringent framework to secure the entire nuclear energy supply chain is being discussed as part of amendments to the Atomic Energy Act.

The proposed watchdog would monitor the import, utilization, and disposal of nuclear waste to prevent misuse and diversions. "The idea is to have stringent oversight," a senior government official told ET. No enrichment facilities would be permitted at these plants, allowing the government to maintain control over nuclear fuel management.

India plans to increase its nuclear energy capacity from the current 8 GW to 40 GW by 2035. The country is looking toward public-private partnerships to set up small modular reactors to meet green energy requirements, supporting India's goal to achieve net-zero carbon emissions by 2070.

The proposed safeguards would align with global best practices and are considered necessary due to risks associated with fuel diversion. Additionally, plant designs would require vetting and approval from the Atomic Energy and Regulatory Board (AERB), which will also be responsible for monitoring regulatory compliance regarding safety concerns.

This nuclear expansion parallels India's growing technological investments, with the country recently reaching tenth position globally for private AI investment at $1.4 billion in 2023, according to a UN report. India has also improved to 36th place on the 'Readiness for Frontier Technologies' index, showing commitment across multiple advanced sectors.

Finance Minister Nirmala Sitharaman had proposed amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act in the budget. Following this proposal, the government formed committees with senior officials to develop these changes.

A final decision on the amendments will be made soon, with officials noting that the government is working quickly on changes to the law. These regulatory updates represent a significant shift in India's nuclear energy policy as it opens the sector to private investment.