Foreign Investment In Nuclear Power Under Consideration In India

In an effort to provide greener energy, India is thinking about lifting a restriction on foreign investment in the country's nuclear power sector and allowing more domestic private companies to participate.

The government panel, which was established by the think tank Niti Aayog and is led by Prime Minister Narendra Modi, has proposed the measures.

The government has a major influence over the creation and management of nuclear power plants in India under the Atomic Energy Act of 1962. Domestic private businesses are allowed to participate as "junior equity partners" by providing construction support and materials.

In order for local and international private enterprises to supplement nuclear power generation by public companies, the panel has suggested revisions to the act and to India's foreign investment rules.

The officials, who declined to be identified because they were not authorised to speak to the media, said that the goal is to cut carbon emissions, and nuclear is a focus since it can supply energy continuously, unlike solar energy.

Several foreign companies, including Westinghouse Electric, GE-Hitachi, Electricite de France (EDF.PA), and Rosatom, are interested in participating in the country's nuclear power projects as technology partners, suppliers, contractors, and service providers, the Department of Atomic Energy has previously reported. India prohibits foreign involvement in the nuclear energy sector.

According to the officials, the focus is on accelerating the development of nuclear energy, which accounts for around 3% of India's total power generation, through private engagement through small modular reactors (SMRs). Coal is utilised to burn three-quarters of it.

The Department of Atomic Energy and Niti Aaayog, both of which report directly to the Prime Minister, did not respond to emails or messages seeking comment.

Each SMR produces up to 300 megawatts (MW) and requires less money, time, and space than traditional reactors because it is factory-built and ready to shift. According to the authorities, they may be used safely in inhabited regions as well.

The only two nuclear power plants in India are owned and operated by the government, namely Nuclear Power Corp of India Ltd. (NPCIL) and Bharatiya Nabhikiya Vidyut Nigam. Government-controlled firms NTPC (NTPC.NS), which produces thermal energy, and Indian Oil Corp (IOC.NS), which markets oil, have partnered with NPCIL to develop nuclear energy.

In November, India's nuclear energy minister, Jitendra Singh, recommended that the country consider private enterprises' involvement in SMR development. The atomic energy department held secret talks with significant players in the domestic and international businesses in the same month, according to one of the officials.

"With the right policy push, we see the private sector taking up significant deployment in the country," said the official.

The officials said that the recommendations would next be delivered to Modi's office but did not provide a time frame.

The government panel advised modifying its electricity policy to forbid the construction of any new coal-fired power stations in addition to advising SMRs to replace outmoded coal-fired power plants, sources told Reuters.
India's nuclear power capacity is 6,780 MW at the moment, and by 2031, it will have 21 more units with a 7,000 MW capacity.

The country must make sure that private businesses abide by the rules because it has accepted international nuclear safety agreements. India imports uranium fuel from France, Russia, Kazakhstan, Uzbekistan, and Canada in accordance with bilateral agreements for use in nuclear facilities.