India is aiming for a massive jump in nuclear power capacity by the year 2047. The government wants to reach 100 Gigawatts (GW) of nuclear energy, which is a huge increase from the current 8.8 GW. To reach this target, officials and industry experts say India must fix its current banking and finance rules. Right now, nuclear energy is not fully supported by existing 'Green Finance' frameworks.

Abhay Karandikar, a member of NITI Aayog (the government's top policy think tank), highlighted a major gap during a recent event in New Delhi. He pointed out that India's Sovereign Green Bond framework and Green Deposit rules currently do not include nuclear energy. For bank officers, this means that money raised through Green Deposits (deposits meant only for eco-friendly projects) cannot be easily lent to nuclear power companies under the current rules.

The scale of investment needed is enormous. Experts estimate that the industry will require nearly $210 billion to meet the 2047 expansion goals. Last year, the government took a big step by opening the nuclear sector to private companies. This move was intended to bring in foreign technology and global private investment, but the financing rules must catch up to make this possible.

There is some good news on the global stage. Karandikar mentioned that global financial institutions, like the World Bank, have started reviewing their policies. They want to find ways to support investments in nuclear projects. If international lenders change their stance, it could make it easier for Indian banks to participate in large-scale energy projects through co-financing or syndication (where multiple banks team up to give a large loan).

Beyond money, the industry is worried about a 'talent crunch.' There is a shortage of skilled workers who understand nuclear technology. Kalirajan S, the head of EDF Nuclear Projects India, said there are not enough specialized courses in Indian schools or universities. Without a trained workforce, even if the banks provide the loans, the projects might face delays due to a lack of technical experts.

To solve this, NITI Aayog has formed a special committee. This committee will look at how to build expertise at every level, from junior technicians to senior research scientists. Companies like France's EDF are already starting certification programs in India to train local vendors and build a steady supply chain of skilled workers.

For Indian bankers, these developments suggest a new lending landscape in the future. If the rules are changed to include nuclear power in 'Green Financing,' banks will have a new sector to deploy their Green Deposits. This would help banks meet their ESG (Environmental, Social, and Governance) targets while supporting the nation's energy security.

In the coming months, bank officers should watch for updates from the Reserve Bank of India (RBI) and the Ministry of Finance regarding the Green Bond framework. Any inclusion of nuclear energy in these guidelines will signal a major shift in how clean energy projects are funded in the country.