India Mulls Allowing Foreign Investment In Nuclear Power: Report | 10 Points

Government plays the central role in developing and running nuclear power stations under India’s Atomic Energy Act 1962.

New Delhi: The Narendra Modi-led government of India is reportedly considering to overturn a ban on foreign investment in the country’s nuclear power industry. More domestic private players’ participation in the sector would also be encouraged as part of a push for cleaner energy, said the report by Reuters quoting two government sources.

As per the report, the measures have been recommended by a government panel, set up by think-tank Niti Aayog which is headed by Prime Minister Narendra Modi.

Ten Points On India’s Nuclear Power Push

1. Government plays the central role in developing and running nuclear power stations under India’s Atomic Energy Act 1962. As per the rule, domestic private companies are allowed to participate as “junior equity partners” by supplying components and helping build them.
2. In the latest move, the Niti Aayog panel has recommended changes to the act and to India’s foreign investment policies so that both domestic and foreign private companies can complement nuclear power generation by public companies, said the report.
3. Earlier, India’s Department of Atomic Energy had said that several foreign companies including Westinghouse Electric, GE-Hitachi, Electricite de France (EDF.PA) and Rosatom were interested in participating in the country’s nuclear power projects as technology partners, suppliers, contractors and service providers.
4. The emphasis of this private participation is through modular reactors to fast-track nuclear energy generation, which accounts for 3 per cent of India’s total power production, said the officials mentioned in the report. Coal fires three quarters of it.
5. The SMR that could be built in a factory in ready-to-shift form could produce up to 300 megawatts and requires less capital, time, and land that conventional reactors; also, they can be safely deployed in populated areas, the officials added.
6. Currently, state-run Nuclear Power Corp of India Ltd. (NPCIL) and Bharatiya Nabhikiya Vidyut Nigam are the only two nuclear power generators in India. Thermal power company NTPC (NTPC.NS) and oil marketing firm Indian Oil Corp (IOC.NS), both government-controlled, have formed partnerships with NPCIL for nuclear power.
7. In November last year, Jitendra Singh, MoS Department of Atomic Energy and Department of Space, had said that the country should explore private players’ participation in developing SMRs. An official in Reuters report said that in November 2022 itself, the atomic energy department held closed-door consultations with domestic and global industry players who showed significant interest. “With the right policy push, we see private sector taking up significant deployment in the country,” said the official.
8. The recommendations will next be submitted to Prime Minister Narendra Modi’s office, said the officials, without giving a timeline.
9. India’s current nuclear power capacity is 6,780 MW and it is adding 21 more units with a capacity of 7,000 MW by 2031.
10. The country is a signatory to international conventions on nuclear safety and will have to ensure that private companies comply with standards. India imports uranium fuel for nuclear plants from Russia, Kazakhstan, Uzbekistan, France and Canada under bilateral agreements.