India's nuclear fusion startups are demanding a dedicated regulatory framework, arguing the country's newly overhauled atomic energy law still treats their reactors as if they carried the same risks as conventional fission plants. According to written recommendations submitted to Niti Aayog, the startups want a separate legal category for fusion facilities, lighter safety standards based on actual risks, quicker licensing processes, and easier access to fusion-related materials. This submission followed a stakeholder consultation on the SHANTI Act on 10 July, with the new nuclear law receiving presidential approval in December 2025.
Founders argue that fusion reactors cannot melt down or explode and only produce inert helium as waste, different from fission plants which have risks of chain reactions and long-lasting radioactive waste. As reported by Mint, Prabhat Ranjan, CEO of ASPL Fusion, explained that exclusion zones of up to 1 km, the standard for fission sites, are not needed for fusion. Dr Pravin Kini, co-founder of Anubal Fusion, noted that fusion reactors should not be regulated like fission reactors, as they cannot have accidents that spiral out of control.
Funding remains a significant challenge despite fusion's potential for India's energy security. According to Tracxn data included in the submission, domestic nuclear startups raised $6.8 million so far in 2026, while their American counterparts raised $1.18 billion. Currently, India has four startups in the nuclear fusion space, per Tracxn data. Vishesh Ranjan of Speciale Invest emphasized that nuclear is the only clean technology that can provide true, round-the-clock baseload power at the scale required by India's $7-trillion economy ambitions.
Founders report significant challenges in securing funding and office space due to public perception of nuclear technology. Siddhartha Durairajan, co-founder of Hylenr Technologies, recalled struggling to lease office space in Bengaluru in 2024 because landlords were wary of hosting a nuclear company. The word 'nuclear' itself creates confusion, conjuring images of Chernobyl, Fukushima and weapons that leave the public, landlords and investors unable to distinguish fusion from fission. Experts suggest startups will need government support alongside private investment, similar to how initiatives like IN-SPACe helped private companies in the space sector.
The US passed the ADVANCE Act in 2024, recognizing fusion as a separate technology and putting it under a regulatory system designed specifically for it, rather than stricter rules that apply to conventional nuclear reactors. According to the IAEA's World Fusion Outlook 2025 report, fusion energy offers major advantages such as higher energy density, more abundant fuel resources, less radioactive waste and greater inherent safety. Niti Aayog had asked members to submit written inputs by 20 July and mentioned they are in the process of studying the inputs received so far. Meanwhile, the Trump administration is exploring offshore nuclear power as part of its plan to expand U.S. nuclear capacity, with the Marine Minerals Administration and Nuclear Regulatory Commission coordinating on future developments.
