India’s nuclear sector: rising risks

by Nazia Sheikh

INDIA has recently invited private companies to help develop Bharat Small Reactors (BSRs), marking a shift in its nuclear energy strategy.

BSRs are compact reactors designed for smaller-scale electricity generation, diverging from traditional nuclear plants.

However, the involvement of private firms in handling nuclear materials raises concerns about security, such as the risk of theft and misuse.

Public-private partnerships (PPPs) could amplify these risks.

India aims to reach 100 gigawatts of nuclear capacity by 2047, nearly twelve times its current output. Without strong oversight, private sector involvement may increase the likelihood of nuclear theft by non-state actors, potentially destabilizing the region. Historically, the state-owned Bharatiya Nabhikiya Vidyut Nigam (BHAVINI) has been India’s only operator of nuclear power plants, but now, the government is seeking private collaboration to advance SMRs and innovate nuclear technologies.

Recent incidents of nuclear theft in 2024 underscore the dangers of private sector involvement. Private companies might prioritize cost-saving over safety, risking accidents and weak accountability could further jeopardize oversight of nuclear technology. The Indian government’s recent decision to ease nuclear laws for private sector entry has raised concerns, with plans to dilute the civil nuclear liability law, reducing supplier accountability while encouraging foreign investment despite safety risks.

This shift in policy is concerning, especially given India’s weak nuclear safety record. Theft and unlawful sale of radioactive materials have been recurrent problems since the 1990s. These breaches raise alarms, particularly for neighboring Pakistan, challenging India’s non-proliferation reputation and threatening global nuclear security efforts. The potential for nuclear materials falling into the wrong hands poses a direct threat to both South Asian and global security.

South Asia remains one of the world’s most volatile regions, with a complex security dynamic between India and Pakistan. A lapse in nuclear security—such as theft or mishandling of materials—could escalate tensions and destabilize the region. Pakistan has consistently expressed concerns over India’s nuclear security record, which remains a valid issue. The possibility of non-state actors exploiting security vulnerabilities in India’s nuclear infrastructure amplifies this risk.

Additionally, much of India’s nuclear industry operates outside International Atomic Energy Agency (IAEA) safeguards, weakening global regulatory oversight. The IAEA and international community must ensure that India’s nuclear privatization plans do not jeopardize regional or global stability. Without robust oversight, privatizing the sector could set a dangerous precedent for nuclear proliferation.

India’s pursuit of SMRs requires rigorous international scrutiny. The global community must not overlook India’s security vulnerabilities. International regulatory bodies, including the IAEA, should demand transparency and stricter security measures before allowing further nuclear development. Private sector participation must come with stringent safety regulations and independent oversight to mitigate the risks of nuclear accidents and proliferation. Until these concerns are addressed, the expansion of SMRs in India should be viewed cautiously.

—The writer is a Research Officer at the Centre for International Strategic Studies, AJK.

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