In an effort to promote greener energy, the government is thinking about lifting a restriction on foreign investment in its nuclear power business and allowing more domestic private firms to participate.
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 enterprises are permitted to take part as "junior equity partners" by contributing materials and aiding in construction. In order for local and international private enterprises to supplement nuclear power generation by ublic 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 authorized 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.
India forbids foreign participation in the nuclear energy industry. The emphasis, according to the officials, is on private engagement through small modular reactors (SMRs) to expedite the creation of nuclear energy, which makes up about 3% of India’s overall power production. Three halves of it are burned by coal.
Along with a suggestion to change its electricity policy to prevent the addition of any new coal-
fired power stations, the government panel has also advised replacing outdated coal-based plants with SMRs.
India currently has a nuclear power capacity of 6,780 MW, and by 2031, it will have 21 more units with a 7,000 MW capacity.
The nation must ensure that private enterprises adhere to requirements because it has ratified international nuclear safety accords. In accordance with bilateral agreements, India imports uranium fuel for nuclear facilities from France, Russia, Kazakhstan, Uzbekistan, and Canada.