FDI in nuclear energy is not allowed

Q.  Which of the following is/are true?

1) FDI is permitted up to 26% in nuclear power sector.
2) Foreign companies however, cannot invest in the supply chain for nuclear power projects.

- Published on 16 Aug 16

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

ANSWER: Neither 1 nor 2
  • As per the Foreign Direct Investment (FDI) Policy of the Government, FDI is not permitted in nuclear power sector. Thus, foreign companies cannot invest in nuclear power.
  • Nuclear power projects to be set up with foreign technical cooperation are planned to be funded by a mix of equity and debt, with equity to be mobilized from internal resources of Nuclear Power Corporation of India Limited (NPCIL), Joint Venture companies between NPCIL and other Central Public Sector Undertakings and Government budgetary support.
  • Foreign companies can however, invest in the supply chain for nuclear power projects.

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