Following PM Modi's announcement of reforms in the nuclear sector, opening it up for private players, the power sector companies are eager to jump right in to the opportunity. (Photo: MTAR Website)
India has dismantled its decades-old state monopoly in the nuclear energy sector by permitting private firms to mine, import, and process uranium, a historic step designed to supercharge clean energy growth and attract major investments. This regulatory shift aligns with Prime Minister Modi’s vision for energy independence, aiming to scale up nuclear power capacity twelvefold by 2047, with nuclear energy expected to meet 5% of India’s total electricity demand.
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Before this, nuclear power production and uranium fuel mining were the sole domains of government. The new system will enable eligible Indian and some foreign companies to become part of fuel mining, supply, and even minority interests in nuclear facilities. However, critical activities like reprocessing of spent fuel and plutonium waste management will still be kept under firm state control for purposes of ensuring national security.
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The news instilled hope in Dalal Street, with the investor community hastening to re-rate firms likely to gain from increased prospects in nuclear power. Power equipment, engineering, and technology stocks, particularly those providing key equipment, reactors, and parts were in sharp spotlight.
Tata Power, a diversified energy giant, edged higher to ₹388.60 on August 18, 2025, adding 0.86% for the day amid overall market turbulence. The firm is looking at new projects in nuclear power and has been ringed in analysts' radar for double-digit potential upside fuelled by strong growth in renewable energy as well as exposure to future nuclear infrastructure deals. The capacity of Tata Power to expand transmission, distribution, and generation makes it a leader among private companies eager to enter nuclear growth.
MTAR Technologies, the precision engineering giant, is unique in its strong capability to produce important components for nuclear reactors and clean energy systems. MTAR recently posted a quarterly revenue surge and made announcements to spend more than ₹100 crore on nuclear-centred capex in the context of a robust order book worth close to ₹1,000 crore over three years. Its stock, which traded at ₹1,547.50 (NSE) on August 18, indicates building investor optimism, although the stock experienced volatility during the earlier months of the year.
Shares like BHEL, Larsen & Toubro (L&T), Walchandnagar Industries, and Hindustan Construction Company surged in strength in the aftermath of Budget 2025's ₹20,000 crore nuclear energy mission, a manifestation of broad institutional support for firms with demonstrated track records in building nuclear power plants, SMR (small modular reactor) technology, and critical systems.
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India's nuclear industry liberalisation will unlock billions of investment, drive innovation, and open high-value opportunities for the private sector. Tata Power, MTAR Technologies, and sector peers are well-placed to benefit, as the country undertakes its most ambitious nuclear power growth ever.
