Govt considering amendments to Atomic Energy Act, nuclear liability law
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Government is considering amendments to the laws governing the nuclear power domain, including the sectoral regulator, to allow participation of private sector as India eyes to produce 100 GW atomic energy by 2047. Government sources said amendments were being considered to the Atomic Energy Act to allow private sector participation and the Civil Liability for Nuclear Damage Act to limit the liability on suppliers of equipment to build atomic energy plants.The government is also considering regulatory reforms and is evaluating the model of Indian National Space Promotion and Authorization Center (INSPACe) which acts as the promoter and regulator for the space sector that was opened up for private participation in 2020.Finance Minister Nirmala Sitharaman announced opening up of the nuclear power sector which has been restricted to public sector companies. The Nuclear Power Corporation of India Limited operates atomic power plants across the country that contribute 8.7 GWe to the country's energy mix.Sitharaman also announced the Nuclear Energy Mission for research and development of Small Modular Reactors (SMR) with an outlay of Rs 20,000 crore and to operationalise five indigenously developed SMRs by 2033.The Department of Atomic Energy officials has recently said that the Nuclear Energy Mission aims to leverage private sector participation, streamline regulatory frameworks, and scale up nuclear power production to meet India's increasing energy demands.Foreign nuclear power firms had evinced interest in setting up atomic power plants in India after it secured a waiver from the Nuclear Suppliers Group to engage in global nuclear trade. The NSG waiver came after the landmark India-US civil nuclear deal of 2008.However, the Civil Liability for Nuclear Damage Act of 2010 proved to be an impediment for private sector participation. The private sector termed certain provisions of the law were unacceptable and contradicted the international Convention for Supplementary Compensation for Nuclear Damage (CSC).The government expects the private sector to pitch in with investments to achieve the target of producing 100 GWe nuclear power by 2047.The officials said that around 50 per cent of the 100 GW target is expected to come from Public-Private Partnerships (PPP).A parliamentary panel has also recommended establishing a robust financial model that includes government incentives, Viability Gap Funding (VGF), and sovereign guarantees to attract both domestic and foreign investments.The Committee had suggested that expediting legislative amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act to encourage private investment in nuclear power generation.India plans to set up private sector SMRs of 220 MW Bharat Small Reactors (BSR) for captive use. NPCIL had recently invited Request for Proposals from Indian industries for setting up 220 MW BSRs for captive use.
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