Crossing Borders, Splitting Atoms: Exchange Control Issues In India’s Nuclear Energy Sector

Executive Summary

India stands at a pivotal juncture in its nuclear energy journey. With an ambitious target of achieving 100 GW of nuclear power capacity by 2047, the country is actively courting foreign participation across the nuclear value chain from uranium supply and reactor construction to technology licensing and waste management. Yet, beneath this energy ambition lies a formidable thicket of exchange control regulations that govern every cross-border financial transaction in this sector.

This article examines the foreign exchange and regulatory framework that applies to nuclear energy transactions in India, with particular focus on the interplay between the Foreign Exchange Management Act, 1999 (FEMA), the Atomic Energy Act, 1962, and allied sector-specific legislation. It also provides practical guidance for Indian companies engaging with foreign counterparts whether as joint venture partners, technology licensors, equipment suppliers, or project financiers.