Uncertainty plagues India’s nuclear ambitions: The land and law challenge

Amid India's ambitions to scale up nuclear energy capacity up to 100 gigawatt (GW), the country is facing a significant roadblock, one that begins at the very foundation of any project: The land. 

Experts and industry leaders at the PowerGen India 2025 event in New Delhi highlighted the often contentious issue of land acquisition and the legal framework that governs it.

The challenges aren't just about finding suitable plots; they are deeply rooted in legal statutes, financial viability and a fraught history of public relations.

According to them, nuclear projects, from site selection to first criticality, are a lengthy and deliberate process, typically taking 5-5.5 years from the first concrete pour. This doesn't include the initial two years for site studies, land acquisition and geotechnical validation. This timeline is a global standard and cannot be significantly compressed due to the inherent complexity and safety requirements of nuclear facilities, said Prasenjit Pal, executive director of the National Thermal Power Corporation.

The discussion brought to light the ground-level issues, with the Gorakhpur Nuclear Power Plant in Haryana serving as a stark example. The acquisition of 1,400 acres for the project became a flashpoint between the government and local farmers. Landowners claimed they were promised Rs 50 lakh per acre and a government job for each affected family, but the government reportedly paid a lesser compensation of Rs 34.7 lakh per acre and failed to deliver on the job promise. This led to prolonged protests, forceful evictions, and legal battles that continue to this day.

Another central point of contention, as highlighted by Pal, is the Atomic Energy Act, 1962. This law mandates that only a government entity can own a nuclear power plant, a provision that has effectively scared away private investors. 

Pal revealed that a Request for Proposal (RFP) was issued to the private sector, with a seemingly “unrealistic expectation”. The RFP required private players to “bring in the land, the finances and get the plant constructed. And having got the plant constructed, they are supposed to transfer the ownership to the government company.” 

He explained the fundamental flaw in this model: "What is one’s collateral for that loan? It's the project. Now how can they transfer that asset to somebody else?" This legal Catch-22 means that until the law is amended, private sector participation will remain stalled.

NTPC, which aims to build 30 GW of nuclear power capacity by 2047, is approaching new nuclear projects with a focus on achieving the lowest possible cost per unit of energy produced. The state-run company is developing the 2.8 GW Mahi Banswara Nuclear Power Plant in Rajasthan, which will be its first entry into the nuclear sector.

It plans to move beyond just Pressurised Heavy Water Reactors (PHWR) and explore a “bulk tender” process, similar to what was done for supercritical technology, to leverage scale and drive down costs.

Amid the legal and on-ground battles, foreign players like Russia’s State Atomic Energy Corporation Rosatom emphasised the importance of public trust. 

About managing local resistance, Katerine Astashina, South Asia lead of the company, stated, "We really need to work on... maintain the highest possible level of transparency, of open dialogue, of education." 

This sentiment was echoed by Kalirajan S, managing director of EDF Nuclear Projects India Pvt Ltd, who noted that a new technology "should not be compared with what is existing in India" and that the larger goal is to choose "decarbonisation." 

They said that while India's nuclear ambitions are clear, they are held back by an outdated legal framework and the lingering scars of contentious land deals. The hope for future progress lies in a two-pronged approach: Legal reform and a shift toward genuine transparency, fair compensation and proactive engagement with affected communities to prevent future conflicts and build the public trust required for large-scale nuclear development.