Cabinet Clears Nuclear Energy Bill for Private Participation
The nuclear energy bill, which aims to modify current legislation to allow private companies to participate in the civil nuclear power sector, was approved by the Union Cabinet led by Prime Minister Narendra Modi, according to reports.
The proposed changes in the bill are expected to amend the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage (CLND) Act of 2010 in order to address concerns that have discouraged private entities, including foreign technology and equipment suppliers, from getting involved in the sector.
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This initiative is in line with the government's target of achieving a nuclear power capacity of 100 Gigawatts (Gw) by 2047. The upcoming legislative modifications will also support the implementation of the Nuclear Energy Mission, which was announced by Finance Minister Nirmala Sitharaman during her Budget speech in February.
The Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Bill has been included in the legislative agenda of the current Parliament session. Union Minister Jitendra Singh recently informed Parliament that the bill is in the final stages of drafting, with input from various ministries being incorporated.
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Despite the requirements of substantial technical and financial resources for the rapid development of 100 Gw of nuclear capacity by 2047, the existing Atomic Energy Act does not allow participation from the private sector or state governments, as highlighted in a report from a high-level panel in June.
Private sector involvement is anticipated to bring increased capital and efficiency to the construction of nuclear power plants, although suppliers and potential operators are currently hesitant about the provisions of the CLND Act due to uncertainty surrounding liability concerns.
A panel has suggested permitting any company, rather than exclusively government-owned enterprises, to operate nuclear plants and handle fuel cycle activities with a license. This same panel has also advised the government to remove itself from the process of tariff regulation for nuclear projects.
In response to proposed amendments to the CLND Act, the government is considering recommendations to limit supplier liability and redefine suppliers as providers of critical equipment. These changes could create opportunities for exploration, mining of essential minerals, and fuel fabrication in addition to plant construction and power generation.
Experts emphasize the importance of aligning India's civil nuclear liability laws with international standards to attract global technology providers and private investors. At present, tariff rates for nuclear power are determined by the Department of Atomic Energy (DAE) in collaboration with the Central Electricity Authority (CEA). Advocates for private sector involvement suggest oversight by an independent regulator like the Central Electricity Regulatory Commission (CERC) to introduce competitive tariff determination.
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Encouraging private sector participation in research and development of nuclear technologies, including Small Modular Reactors (SMRs), by allowing the creation of intellectual property rights is seen as a forward-thinking approach in line with strategies employed by developed nations.