A major change in the industry is being brought about by the Union government’s plans to allow private companies to participate in uranium mine, import, processing, and nuclear power generation, ending the state’s decades-long monopoly. The policy change builds on the nation’s ambitious plan to increase nuclear power capacity to 100 gigawatts (Gw) by 2047, which was originally hinted at in the Union Budget. In order to increase nuclear power capacity from the current 8.18 Gw, Union Finance Minister Nirmala Sitharaman proposed a Nuclear Energy Mission with a ₹20,000 crore budget.
These recent events represent a late but essential acknowledgment of nuclear energy’s contribution to diversifying the energy mix, addressing climate imperatives, and lessening the nation’s crippling reliance on fossil fuels.
Concerns about radiation safety, nuclear material misuse, and strategic security were used for decades to defend state control. The only company operating nuclear power facilities for civilian use was Nuclear Power Corporation of India Ltd (NPCIL). But as India’s energy transformation becomes more urgent, the policy is having to change. Only a small portion of future demand may be satisfied by domestic uranium reserves, which amount to roughly 76,000 tonnes. Therefore, imports and increased processing capacity are necessary. In order to create supply chains, raise money, and expedite project completion, private involvement will be essential.
The government will need to make modifications to the law in order to operationalize this. The Atomic Energy Act must be amended in order to break NPCIL’s monopoly and let private companies participate in generation. Modifications to the Civil Liability for Nuclear Damage Act are equally important. Since the Indo-US nuclear pact, international nuclear companies have been discouraged by the existing supplier-liability provisions.
Any reform must strike a balance between establishing a framework that does not deter investment or technology transfer and the requirement for just compensation in the event of accidents. By 2033, India wants to put at least five of its own Small Modular Reactors (SMRs) into service. In order to help with decarbonization, Bharat Small Reactors (BSRs), which are essentially pressurized heavy-water reactors with a capacity of 220 megawatts, are being updated to require less land. This makes them ideal for deployment as captive power plants close to industries. By expanding access to areas not suitable for traditional big plants, SMRs and BSRs together can enhance renewable energy.
Grid pricing issues, licensing bottlenecks, and cost overruns are common risks associated with nuclear plants. Additionally, they have extended gestation periods and need a significant amount of upfront expenditure; their working lifespans frequently surpass sixty years. Private companies interested in India’s growing nuclear energy sector must therefore implement creative financing schemes that take into account the long-term nature of nuclear assets. The government may also take into account tools like sovereign guarantees and viability-gap funding to reduce the risk of investment.