Tata Consulting Engineers is advocating for private sector participation in India’s nuclear power generation, a shift enabled by the SHANTI Act, 2025. With major industrial groups evaluating feasibility, the move aims to accelerate capacity toward the 100 GW target by 2047. Note that Tata Consulting Engineers is a private, unlisted subsidiary of Tata Sons and is distinct from the publicly traded Tata Consultancy Services.
Tata Consulting Engineers is calling for a structural change in India’s nuclear energy sector, proposing that the Department of Atomic Energy shift its focus toward strategic objectives while delegating actual power generation to the private sector. This recommendation, led by Managing Director Amit Sharma, aims to create a collaborative model similar to the one used by the Indian Space Research Organisation, potentially fast-tracking the country's goal of reaching 100 GW of nuclear capacity by 2047.
This shift in perspective follows the enactment of the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act in December 2025. The new legal framework replaces older legislation, specifically the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010. By addressing long-standing liability concerns, the SHANTI Act provides a pathway for private companies to enter the power production market, a space previously reserved for state-run entities.
Industrial Interest and Financial Hurdles
The potential for private entry has drawn interest from major industrial groups, including Reliance Industries, JSW, and the Bajaj Group. These companies are currently conducting feasibility studies, with Tata Consulting Engineers providing advisory support. However, the sector remains highly capital-intensive. Building a standard 2,000 MW nuclear facility involves an investment exceeding USD 6 billion, which requires strong balance sheets and long-term financial planning.
Beyond large-scale facilities, the industry is also exploring small modular reactors, which are expected to reach maturity by FY31. These could serve as localized energy sources for data centers or captive industrial power needs. Another strategy being discussed involves retrofitting existing thermal power plants to accommodate nuclear infrastructure, which could help companies bypass difficult land acquisition processes.
Risks and Regulatory Context
Investors monitoring this sector should be aware of significant hurdles. The legal and regulatory framework is still evolving; the government must finalize the specific rules that will govern how private firms apply for and maintain nuclear licenses. Additionally, the SHANTI Act has faced legal scrutiny, with the Supreme Court reviewing provisions related to liability caps. These legal questions are critical, as they affect victim compensation and the level of risk private operators must assume.
For Tata Consulting Engineers, the company anticipates that its nuclear-related revenue will grow to 5-6% of its total revenue by FY30. While the firm sees a cooling in broader growth to 14-16% for FY27 due to global client hesitation, it expects operating margins to improve to 13-14% with the help of recent international acquisitions.
It is essential for investors to distinguish between Tata Consulting Engineers and other Tata Group companies. Tata Consulting Engineers is an unlisted public limited company and a wholly owned subsidiary of Tata Sons. It does not trade on the stock exchanges. Any interest in the nuclear sector's potential impact on the Tata Group should not be confused with the performance of publicly listed entities like Tata Consultancy Services (TCS) or Tata Power.