New Delhi: India's Economic Survey for 2008-09 released here Thursday has called for allowing private players - both domestic and foreign - to invest in the country's nuclear power sector.

The survey, tabled in parliament by Finance Minister Pranab Mukherjee, however, said the foreign direct investment (FDI) cap should be fixed at 49 percent.

"The Atomic Energy Act needs to be amended to permit private corporate investment in nuclear power, subject to regulation by AERB (Atomic Energy Regulatory Board) and AEC (Atomic Energy Commission)," it said.

"Frame the rules for private and foreign entry (49 percent FDI)," the survey added.

India has signed bilateral nuclear power agreements with countries like the US, France, Russia and Kazakhstan.

But, efforts of foreign companies to enter the Indian market did not succeed in the absence of a civil nuclear liability legislation and and amendment of the Atomic Energy Act.

The country's nuclear power production dipped from 16.78 billion kilowatt-hour (kwh) in 2007-08 to 14.71 kwh last fiscal.

India had set a nuclear power capacity addition target of 600 MW for 2008-09, but it could not make any progress on this front.

The electricity generation in the country grew only 2.7 percent in 2008-09, way behind the target of 9.1 percent.