Ending State Monopoly Over Nuclear Sector
The Union government plans to open uranium mining, import, processing, and nuclear power generation to private firms, ending decades of state monopoly. This shift is part of a broader goal to increase nuclear power capacity to 100 gigawatts (GW) by 2047, as announced in the Union Budget.
Nuclear Energy Mission
- The Union Finance Minister allocated ₹20,000 crore for a Nuclear Energy Mission.
- The current nuclear power capacity is 8.18 GW.
- Recognizes nuclear energy's role in addressing climate imperatives and reducing reliance on fossil fuels.
Historical Context
- Previously, state control was driven by concerns over radiation safety, misuse of nuclear material, and strategic security, with Nuclear Power Corporation of India Ltd (NPCIL) being the sole operator.
Challenges and Legal Amendments
- Domestic uranium reserves of 76,000 tonnes are insufficient for future demands, necessitating imports and expanded processing capacity.
- Legal amendments are required to the Atomic Energy Act to end NPCIL's monopoly.
- Changes to the Civil Liability for Nuclear Damage Act are crucial to attract global firms by addressing supplier-liability issues.
Small Modular Reactors (SMRs) and Bharat Small Reactors (BSRs)
- India aims to operationalize at least five indigenously designed SMRs by 2033.
- BSRs, with 220-megawatt capacity, are upgraded for reduced land requirements, making them suitable for industries.
- SMRs and BSRs can complement renewable energy by serving regions unsuitable for large plants.
Investment and Risk Management
- Nuclear projects have long gestation periods and require substantial upfront capital.
- Innovative financing structures and mechanisms like viability-gap funding and sovereign guarantees can reduce investment risks.
- Community engagement and ensuring environmental care and fair compensation are crucial, especially in light of past opposition at sites like Jaitapur and Kudankulam.