(Mains, General Studies Papers 2 and 3: Issues arising from government policies and interventions for development in various sectors, including their design and implementation; infrastructure: energy, ports, roads, airports, railways, etc.) |
Context
- India is seriously considering opening the nuclear energy sector to private investment to achieve its target of 100 gigawatts of nuclear capacity by 2047. This is not only a necessary step to meet the country's growing energy demand but also in line with its commitment to achieve 500 gigawatts of non-fossil fuel-based energy production by 2030.
- The central government is currently conducting extensive deliberations on a plan to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act (2010) to allow the private sector, including foreign companies, to participate in the construction and operation of nuclear plants.

Current Scenario and Legal Hurdles
- Currently, the construction and operation of nuclear power plants in India is limited to government entities such as:
- Nuclear Power Corporation of India Limited (NPCIL),
- Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI), and
- NPCIL-NTPC Joint Venture (ASHWINI).
- The biggest legal challenge paving the way for private sector participation is the provisions of the Civil Liability for Nuclear Damage Act (2010) that impose unlimited liability on foreign suppliers.
- This provision increases business risk in the event of an accident and is inconsistent with international standards, particularly the Convention on Supplementary Compensation for Nuclear Damage (CSC).
- The government is striving to bring these liability laws in line with international standards, which is essential to attract private investment.
Benefits of Private Participation: Efficiency and Target Achievement
Allowing the private sector could have several positive and profound impacts on India's energy landscape:
- Rapid Energy Efficiency: The influx of private capital will accelerate the construction of nuclear power projects. Nuclear power provides a stable baseload power source, helping achieve net-zero emission targets by offsetting the uncertainty of renewable energy.
- Financial Efficiency and Innovation: Private capital investment in projects will reduce financial pressure on the government. Private companies bring better project management and operational efficiencies that can reduce costs. It will also boost investment in advanced technologies such as High-Temperature Gas-Cooled Reactors (HTGRs) and Molten Salt Breeder Reactors (MSRs).
- Development of the Thorium Cycle: Research and commercialization of advanced reactors based on the use of India's abundant thorium resources can be accelerated, ensuring the country's long-term energy security.
Partnership Model and New Technologies
A unique model is being considered to promote private participation, under which private entities will provide land, cooling water, and capital, while NPCIL will handle design, quality assurance, operation, and maintenance. This model is particularly important for the development of Bharat Small Reactors (BSR).
Bharat Small Reactors (BSR)
- These are 220 MW pressurized heavy water reactors (PHWRs) that are being upgraded to occupy less land area and serve as captive power plants near industrial units.
- In addition, the Bhabha Atomic Research Centre (BARC) and the Department of Atomic Energy (DAE) are conducting research on key technologies for future energy needs, such as small modular reactors (SMRs), HTGRs (for hydrogen co-generation), and MSRs (for thorium utilization).
Key Challenges: Safety and Accountability
- Safety and Regulatory Oversight: Private participation will require the Atomic Energy Regulatory Board (AERB) to dramatically strengthen its oversight and safety standards to prevent any safety lapses by profit-driven private entities.
- Legal Accountability: Clearly defining the financial and legal liability of private operators in the event of an accident is the biggest legal challenge. It is also important to determine whether nuclear waste management and spent fuel reprocessing will be the responsibility of the private sector or government operators.
- Public Trust: Given the history of nuclear accidents, gaining public trust in plants operated by private entities will be a challenge. Maintaining transparency and continuous dialogue will be essential.
Conclusion
- The Centre's discussion on the potential for private investment in the nuclear energy sector marks a turning point towards achieving India's 2047 target. This will not only bring financial efficiencies but also promote innovation in advanced nuclear technologies.
- However, to achieve these benefits, the government will need to align liability laws with international standards, establish a stringent regulatory framework, and clearly address key issues such as nuclear waste management and safety accountability.