3, 2, 1 … lift off for nuclear power

The recently concluded Indo-US nuclear deal could potentially herald a new era in India’s rapidly growing power sector. The so-called 123 Agreement between India and the US enables access to reliable and uninterrupted nuclear fuel supplies from international energy markets, ending India’s nuclear isolation which spans more than three decades.

Close on the heels of the 123 Agreement, India has entered into a nuclear fuel and technology supply treaty with France and a nuclear cooperation treaty with Russia.

The government has declared its ambition to increase India’s nuclear energy-generating capacity from the present 4,120 megawatts to an epic 40,000 megawatts by 2025. It is estimated that such a quantum leap will require investments exceeding US$150 billion, unlocking tremendous opportunities for global and Indian power developers, power equipment suppliers and other vendors.

Akshay Jaitly is a partner at Trilegal in Delhi where Sameer Guha is a senior associate and Nayantara Nag is an associate. The firm has offices in Delhi, Mumbai, Bangalore and Hyderabad and has over 80 lawyers, some of whom have experience with law firms in the United States, the United Kingdom and Japan.