India set to allow its private firms to mine and import uranium to help nuclear expansion
Prime Minister Narendra Modi's government plans to expand nuclear power production capacity by 12 times by 2047 and it is also relaxing requirements to allow foreign players to take a minority stake in power plants, Reuters reported in April.
If it meets its expansion goal, nuclear will provide 5% of India's total power needs, according to government estimates.
Until now, the state has maintained control over the mining, import and processing of uranium fuel because of concerns over the possible misuse of nuclear material, radiation safety and strategic security.
It will retain its grip on reprocessing spent uranium fuel and managing plutonium waste, in line with global practice.
But to help meet a surge in demand for nuclear fuel as it expands nuclear power production, the government plans to draw up a regulatory framework that would allow private Indian firms to mine, import and process uranium, the two government sources told Reuters.
They asked not to be named because the plans are not yet public.
India shuts unit at country's largest nuclear power plant for maintenance
The proposed policy, which the sources said was likely to be made public in the current fiscal year, will also permit private players to supply critical control system equipment for nuclear power plants, they said.
The Finance Ministry, Department of Atomic Energy and Prime Minister's Office did not respond to Reuters' requests for comment.
Outside India, countries including Canada, South Africa and the United States allow private firms to mine and process uranium.
Domestic supply is not enough
India has an estimated 76,000 tonnes of uranium enough to fuel 10,000 megawatts of nuclear power for 30 years, according to government data.
But the sources said domestic resources would only be able to meet about 25% of the projected increase. The rest would have to be imported and India would need to increase its processing capacity.
In announcing its budget on February 1, the government made public its plans to open up the sector without giving details. Some of India's big conglomerates subsequently began drawing up investment plans.
But analysts said amending the legislation could be complex. 'It's a major and bold initiative by the Indian Government which is critical for achieving the target,' said Charudatta Palekar, independent power sector consultant.
'The challenge will be to define quickly the rules of engagement with private sector.'
New Delhi will have to change five laws, including the ones regulating mining and electricity sectors and India's foreign direct investment policy to enable private participation in many identified activities, the sources said.
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