Amendments to India's Atomic Energy Legislation

The government is preparing amendments to the legislation governing India's atomic energy sector, aiming for introduction during the winter session. These amendments aim to facilitate collaborations on nuclear energy, driven by a need for alternatives to coal-fired capacity and financial capital rather than technology.

Nuclear Collaborations and Capital Inflow

• India seeks foreign collaborations in nuclear technology for financial capital investment.
• Foreign funds, especially from West Asia, show interest in financing India's nuclear objectives, including manufacturing Small Modular Reactors (SMRs).

Legislative Amendments

The amendments focus on aligning domestic laws with global standards and addressing investor concerns.

• Nuclear Liability Law: The Civil Liability for Nuclear Damage Act, 2010, which defines compensation mechanisms, is viewed as an obstacle by foreign vendors due to liability concerns. Proposed solutions include capping liabilities and creating a state-backed fund pool.
• Atomic Energy Act: Proposes allowing private companies to hold up to 49% equity in nuclear projects, facilitating foreign equity infusion and enhancing project execution pace.

SMR Push and Technological Advances

India is promoting SMRs as a viable low-carbon electricity option, supporting industrial decarbonization and grid stability.

Bharat Small Modular Reactors Initiative

• The Nuclear Power Corporation of India Ltd (NPCIL) is pursuing SMR projects, with six private companies showing interest.
• SMR prototypes include the Bharat Small Modular Reactor (200 MWe), Bharat Small Reactor (220 MWe), and another 55 MWe SMR, with designs at an advanced stage.

Conclusion and Strategic Implications

These legislative and technological initiatives aim to revamp India's nuclear sector, leveraging international collaborations and private investments to enhance nuclear energy's role in meeting the country's base load power requirements.