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News18
3 days ago
- Business
- News18
Atomic Ambitions: Geopolitical Impact Of India's Nuclear Energy Reforms
India's move to open up nuclear power sector to private companies represents a notable shift in its energy strategy and a potential opportunity for private players Embracing adaptability in policymaking is crucial for navigating the complexities of a constantly changing world and ensuring that policies remain relevant, effective, and responsive to the needs of society. India is taking steps to open its nuclear power sector to private companies—a significant shift from its historically state-controlled approach. While the Atomic Energy Act of 1962 had restricted nuclear power generation to government-owned entities, recent policy changes and budget announcements indicate a push toward private sector involvement and global outreach. Union Minister Jitendra Singh, who oversees the Department of Atomic Energy, recently said that India will be able to address the apprehensions of the private sector globally about investments in the civil nuclear sector, which was opened up to achieve the ambitious target of producing 100 GW of atomic power by 2047. He also stressed that changes in relevant rules and legislation will have to be made to facilitate the entry of the private sector in the field of nuclear energy, which is currently under the tight control of the government. This policy shift is driven by the need to attract private capital, potentially increasing India's nuclear capacity and reducing reliance on fossil fuels. It is a move that would require amendments to existing laws, and India is considering changes to the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010 to allow private companies to build, own, and operate nuclear power plants. It may be recalled that in February this year, Finance Minister Nirmala Sitharaman, introducing the Union Budget for 2025, announced the creation of a new Nuclear Energy Mission for 'Viksit Bharat' and indicated amending laws that are limiting nuclear industry growth. Viksit Bharat 2047 represents the government's vision to transform India into a developed entity by its 100th Independence anniversary in 2047. The Finance Minister said that generating at least 100 GW of nuclear energy by 2047 is 'essential for our energy transition efforts." She added: 'For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be made." She also said that a Nuclear Energy Mission for research & development into Small Modular Reactors (SMRs) will be set up with an investment of Rupees 20,000 crores ($2.3 billion). At least five indigenously developed SMRs will be operational by 2033, she said. Many countries allow private sector participation in nuclear power generation, though the extent of this involvement varies significantly. The United States is a prime example, with large private sector participation in its civil nuclear industry. Some countries like Finland and the UK have also seen varying degrees of privatization in their nuclear sectors. Others, like China, Japan, and the United Arab Emirates, are also exploring or implementing public-private partnerships for nuclear power projects. Thus, it is a positive development that India is also taking the necessary steps to gradually open up to private investment in nuclear power by announcing plans to invite private companies to invest in nuclear electricity projects. Currently, the Nuclear Power Corporation of India Ltd (NPCIL) is the sole operator of nuclear power plants in India. The Atomic Energy Act of 1962 prohibits private sector control of nuclear power generation. The government is actively working to ease restrictions and attract private investment to expand India's nuclear capacity, and private investment is seen as crucial to achieving this goal. Amendments to existing laws are needed to allow private players to participate. The government is believed to be engaging with private firms like Reliance Industries, Tata Power, Adani Power, and Vedanta Ltd. to potentially invest in new nuclear power plants. Under this proposed model, private companies could acquire land and water resources, invest in plant development, and undertake construction activities in areas outside the reactor complex. However, the Nuclear Power Corporation of India Limited (NPCIL) would still retain the rights to build and operate the plants and manage fuel. Private companies are expected to earn revenue from electricity sales, while NPCIL would operate the projects for a fee. India is also opening its nuclear power sector to foreign investment, allowing up to 49 per cent foreign direct investment, perhaps starting with a 26 per cent cap and increasing it in phases. It is estimated that the opening up of the nuclear sector could create a $100 billion market, attracting global players. Some companies (like Holtec International of the US) are seeking to transfer Small Modular Reactor (SMR) technology to India. India is also looking to diversify its uranium fuel sources and expand its vendor base for specialised nuclear equipment. India's decision to open up its nuclear power sector to private and foreign investment has been met with a mix of positive reactions and cautious optimism globally. While some see it as a crucial step toward bolstering India's energy security and achieving its ambitious climate goals, others express concerns about potential risks and regulatory hurdles. Concerns remain about the Civil Liability for Nuclear Damage Act of 2010, which is considered by some to have been a barrier to foreign investment in the past due to its potential for high operator liability in case of accidents. The Indian Civil Liability for Nuclear Damage Act of 2010 is a law establishing a framework for civil liability in the event of a nuclear incident. It aims to provide prompt compensation to victims and facilitate India's participation in international agreements regarding nuclear damage. The operator of a nuclear installation is held liable for damages, regardless of fault, in a nuclear incident. The government is looking to address concerns around liability and safety regulations to encourage private investment. The Civil Liability for Nuclear Damage Act imposes significant liability on operators, which may need to be addressed to encourage private investment. The history of nuclear regulation demonstrates a progression toward tighter controls and greater public and environmental protection, driven by lessons learned from past incidents like Chernobyl and Fukushima. The current regulatory framework and ongoing advancements in safety protocols aim to ensure that nuclear power remains a safe and reliable energy source. In the United States, the Nuclear Regulatory Commission (NRC) plays a key role in ensuring safety when private companies operate nuclear facilities. Thus, ensuring robust safety protocols and regulatory oversight is crucial when private companies operate nuclear facilities. The Indian Nuclear Insurance Pool (NIP) was established in 2015 to address liability concerns, creating a more secure environment for foreign investors. The Pool provides capacity for insurance coverage to operators and suppliers for any nuclear liability toward third parties under the Civil Liability for Nuclear Damage Act. India's nuclear energy ambitions could have broader geopolitical implications, particularly in its relationship with countries like the US. The US has expressed intentions to remove barriers to civil nuclear cooperation with India, recognizing its potential for growth in the sector. In March 2025, the US Department of Energy approved the proposal from Holtec International to share Small Modular Reactor (SMR) technology with India, removing a key hurdle that had delayed the deal. French and US companies have also expressed interest in partnering with Indian companies on SMR projects. The Russian nuclear company Rosatom has also offered its expertise in building SMRs in India. India has signed agreements with many countries for collaboration on nuclear energy, including the development of advanced reactors. Russia continues to be a key partner, involved in projects like Kudankulam and exploring areas like floating nuclear power plants and Small Modular Reactors (SMRs). As regards the US, the 2008 Civil Nuclear Agreement and more recent regulatory clearances, like the one granted to Holtec International for SMR technology transfer to Indian firms, are facilitating deeper engagement. France is collaborating in the proposed Jaitapur Nuclear Power Project located in Maharashtra and exploring collaboration in SMRs and research reactors. The Jaitapur plant will have six reactors, each with a capacity of 1,650 MW and involves technical cooperation with Electricité de France. With Canada, India has a uranium supply agreement and potential for collaboration in CANDU reactor technology and related services. CANDU is a type of nuclear reactor known for its use of heavy water (deuterium oxide) as a moderator and coolant, and natural uranium as fuel. CANDU reactors are a significant part of Canada's energy production, with some reactors also operating in other countries including Argentina, China, South Korea, Romania, India, and Pakistan. With South Korea, India has signed an intergovernmental agreement for civil nuclear cooperation, potentially opening avenues for South Korean companies to participate. top videos View all Summing up, the Indian government's move to open up the nuclear power sector to private companies represents a notable shift in its energy strategy and a potential opportunity for private players to contribute to the nation's nuclear power growth. This policy shift, alongside legislative amendments, aims to boost nuclear power generation and facilitate private sector participation, including international collaborations. The move is expected to attract foreign capital and technology, potentially transforming India's nuclear energy landscape. Addressing public concerns about nuclear safety and waste management is essential. While challenges remain, the government is taking the right steps to address concerns about liability, safety, and regulations to attract private investment and achieve its ambitious nuclear energy goals. Adapting to changing needs is indeed a cornerstone of effective policymaking. The writer is a retired Indian diplomat and had previously served as Consul General in New York. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18's views. view comments Location : New Delhi, India, India First Published: July 28, 2025, 13:58 IST News opinion Opinion | Atomic Ambitions: Geopolitical Impact Of India's Nuclear Energy Reforms Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
23-07-2025
- Politics
- Time of India
Nuclear power generation stood at 56,681 million units in 2024-25; capacity projected to reach 22,380 MW by 2031-32
New Delhi: Nuclear power contributed about 3 per cent to the total electricity generated in India in 2024-25, with nuclear power plants producing 56,681 million units (MUs) of electricity during the period, the government informed the Lok Sabha on Wednesday. Presenting the data, Union Minister of State for Science and Technology and Earth Sciences, Dr. Jitendra Singh stated that the government has set a target of achieving 100 GW of nuclear power capacity by 2047 under its Nuclear Energy Mission. This would involve expanding both domestic and imported nuclear fuel sources and enabling participation from public and private sector entities in nuclear energy development . As of now, India's installed nuclear capacity stands at 8,780 MW spread across 24 reactors. This excludes the 100 MW Rajasthan Atomic Power Station (RAPS-1), which is under extended shutdown. An additional capacity of 13,600 MW—including the 500 MW Prototype Fast Breeder Reactor (PFBR) being implemented by BHAVINI—is currently under various stages of implementation. On completion of the ongoing projects, the installed nuclear power capacity is expected to increase to 22,380 MW by 2031-32. The Minister also noted that the government is promoting research and development in Small Modular Reactors (SMRs) and advanced nuclear technologies to meet the 2047 target. The upcoming capacity addition will include both existing reactor designs and new technologies under development.
The Hindu
23-07-2025
- Business
- The Hindu
Redeeming India's nuclear power promise
The Union Budget for 2025-26 marked a significant shift in India's nuclear energy plan by announcing an ambitious target of 100 GW of power generating capacity by 2047, up from the present 8.18 GW. This positions nuclear power as a major pillar in India's energy mix, given the two goals of emerging as a developed country (Viksit Bharat) by 2047, and achieving 'net zero emissions' by 2070. Simultaneously, the Nuclear Energy Mission announced a special allocation of ₹20,000 crore to develop 'at least five indigenously designed and operational Small Modular Reactors (SMR) by 2033.' Such ambitious plans will need the involvement of private players, both domestic and foreign, into a hitherto government sector, which will require significant changes to the legislative, financial and regulatory framework. The government has indicated that some changes in the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act (CLNDA), 2010 are in the offing. However, such reforms also need a change in mind set. India's nuclear journey India had an early start, setting up Asia's first nuclear research reactor, Apsara, in 1956, and beginning work on Asia's first nuclear power reactors at Tarapore in 1963. As early as 1954, Dr. Homi Bhabha, the architect of India's nuclear programme, presented a target of generating 8 GW of nuclear power by 1980. However, the journey has been long and difficult. Following India's war with China in 1962; its entry into the nuclear club in 1964; the decision to stay out of the nuclear Non-Proliferation Treaty (NPT) in 1968; and the Peaceful Nuclear Explosion (PNE) test in 1974, India was excluded from the emerging nuclear order. International cooperation ceased and export controls slowed down the nuclear power programme. This led to the nuclear power target being pushed to 10 GW by 2000. Moreover, India took time to successfully indigenise the design of the 220 MW Pressurised Heavy Water Reactor (PHWR), employed in Rajasthan. Its advantage was that it used natural uranium as fuel unlike the design of the Tarapur Light Water Reactor (LWR), which used Low Enriched Uranium (LEU) that India obtained from the U.S., and later, from France. Subsequently, the same 220 MW PHWR units were established at Narora, Kaiga, Kakrapar etc., and the design was upgraded to 540 MW (set up at Tarapur in 2005-06) and to 700 MW with two units becoming operational at Kakrapar in 2024. After the nuclear tests in 1998, followed by intense negotiations with the U.S. and other strategic partners, India finally gained acceptance as a responsible nuclear power. It also got a special waiver from the Nuclear Suppliers Group (NSG). India was thus ready to resume exchanges with other nuclear powers to import both nuclear fuel and more advanced reactors to expand its nuclear energy programme. However, the CLNDA created new difficulties that have prevented such anticipated external participation. In fact, Russia is the only country that is partnering with us at Kudankulum with six VVER-1000 power reactors because the government-to-government agreement, signed in 1988, predated the CLNDA. Towards green development To become a developed country by 2047, India's annual per capita income needs to grow from the current $2,800 to $22,000, and correspondingly, the GDP needs to grow from the current $4 trillion to over $35 trillion. There is a well-established correlation between economic growth and energy consumption. In 2022, India's per capita electricity consumption stood at 1,208 kWh, compared to 4,600 kWh for China, and over 12,500 kWh for the U.S. India's electricity generation capacity, currently at 480 GW (divided almost equally between fossil fuels and renewables), will have to grow five-fold, accounting for growth in population and urbanisation. However, solar, wind, and small hydro projects provide only intermittent power. That is why out of 2030 terrawatt-hours (TWh) — the total electricity generated in 2024 — renewable energy, with half the generation capacity, accounted for only 240 TWh. Coal fired thermal plants accounted for 75% of energy generation. The climate change commitments announced by Prime Minister Narendra Modi in 2021 at Glasgow COP26 of 'net zero emissions by 2070, raising non-fossil energy generation capacity to 500 GW by 2030 while meeting 50% of the energy demand through renewables, and achieving a carbon intensity reduction of 45% over 2005 levels by 2030' means that India will not be able to rely on fossil fuels for its growth. Renewable energy is (including solar, hydro, wind, and biomass) is estimated to provide 20% of the demand and up to 25% with investments in battery and pumped storage. Therefore, the obvious candidate to fuel India's energy growth is nuclear power. There is a renewed interest globally in nuclear power. This reflected in the Dubai 2023 COP28 'Declaration to Triple Nuclear Energy', acknowledging nuclear power as a critical input in reducing reliance on fossil fuels, enhancing energy security, and a move towards a low carbon future. In June, the International Atomic Energy Agency (IAEA) and the World Bank agreed to work together to support nuclear energy in developing countries, marking a significant policy shift. World Bank President Ajay Banga pointed out, 'nuclear (energy) delivers base load power, which is essential to building modern economies.' Creating an enabling environment The government is looking at three routes. One is to standardise the 220 MW PHWR design and apply it to Bharat Small Modular Reactors, which would significantly reduce costs and commissioning time. This could replace captive thermal power plants that today account for over 100 GW, and which will be replaced over the next two decades. The second track is to scale up the Nuclear Power Corporation of India Limited (NPCIL) plans for the 700 MW PHWR by facilitating land acquisition, streamlining licensing, and strengthening indigenous supply chains. The third track is to accelerate negotiations with partners in France and U.S. that have been moving at a glacial pace for the last 15 years. Under the Atomic Energy Act, nuclear power is a sector reserved by the government. The NPCIL is a government owned company that builds, owns, and operates the PHWRs, the first two Tarapur LWRs, and the Russian designed VVERs. Nuclear power financing is qualitatively different because of the higher upfront capital costs, lower operating costs, a lifecycle of 50-60 years, and costs associated with decommissioning as well as managing radioactive waste. The indigenised PHWR model has a capital cost of $2 million/MW while the equivalent cost for a coal fired thermal unit is just under a million. Given NPCIL's annual budget of $1.2 billion, the government has realised that to achieve the target of 100 GW, private sector companies will have to be brought into the sector, necessitating a comprehensive set of amendments to the Atomic Energy Act. Questions of majority/minority ownership; whether the nuclear operator will be exclusively NPCIL; who has responsibility and control over the nuclear island part of the plant; and concerns over assured fuel supply and waste management responsibility will need to be discussed with potential stakeholders that include major players like Tatas, Adani, Ambani, Vedanta etc. All these will require amendments to the 1962 Act. A set of comprehensive amendments will also be needed for the 2010 CLNDA especially with regards to its liability clause which affects not just the 'operator' but also the 'supplier' of nuclear power. A third area is commercial disputes relating to tariffs. Nuclear electricity tariff for NPCIL is notified under the Atomic Energy Act. Generally, commercial disputes fall under the Electricity Act and are settled by the Central Electricity Regulatory Commission (CERC) but a recent dispute between NPCIL and Gujarat Urja Vikas Nigam has led to conflicting views by the CERC and the Appellate Tribunal. The case is now under consideration before the Supreme Court. With the entry of the private sector into the field, should the tariff setting come into the 'levelised cost of energy' as applicable to thermal, solar, wind and hydro will depend on how the question of ownership and control are determined. While India has had an impeccable nuclear safety record, the certification and safety oversight is the responsibility of the Atomic Energy Regulatory Board (AERB) that is 'autonomous' but not a legal entity and is subordinate to the Department of Atomic Energy. In 2011, a draft Bill was circulated to establish AERB as an independent regulator, but the Bill lapsed. With the entry of the private sector, the need for an independent regulator becomes paramount. In addition, a raft of financial incentives will need to be introduced. While nuclear energy is a low-carbon energy source, it is not classified as 'renewable', like solar or wind. Revising this classification would make nuclear power projects eligible for tax incentives and specially designed 'green financing' instruments. Long term power-purchase-agreements and provision for viability-gap-funding are other incentives. The sector also needs to be opened up to foreign direct investments, perhaps up to 49%, to ensure Indian ownership and control. In the past, the process of reform has been tentative. In 2011, the NPCIL set up a Joint Venture (JV) with the National Thermal Power Corporation (NTPC), but it languished till it was revived last year. It will now build and operate four units of 700 MW each, scheduled to come up at Mahi Banswara in Rajasthan. Land acquisition has been underway and once completed, the first unit will take seven years. A JV with the Rural Electrification Corporation (REC) is also being envisaged. Both the REC and NTPC are public sector units and these JVs will be wholly government entities. However, if India has to deliver on the promise of 100 GW by 2047, it needs foreign partners and the private sector. While this has been accepted by the government, it now has to move forward with the reforms comprehensively and decisively. Rakesh Sood is a former diplomat and is currently Distinguished Fellow at the Council For Strategic and Defence Research.
Mint
08-07-2025
- Business
- Mint
IndianOil preparing new strategy for N-power, not interested in Nayara stake: Chairman Sahney
Indian Oil Corp. Ltd is preparing a new strategy to build small modular reactors (SMR) and large nuclear power plants in the country, chairman Arvinder Singh Sahney said. India's largest oil refiner and marketer is taking fresh look at nuclear diversification, Sahney said in an interview, though the company had earlier tied up with Nuclear Power Corp. of India Ltd (NPCIL) for the venture. He did not reveal plans for the technology partner. India's Bharat SMR (BSR) is being designed with a capacity of 200 MWe, while a smaller 55 MWe variant is also under development. However, Indian Oil did not participate in NPCIL's recent bids to set up such reactors for captive use. Indian Oil's large refineries consume as much power as produced by BSRs, Sahney said, prompting it to consider building them. "We have not participated in NPCIL's request for proposal (RFP) process, but we are looking into it in a renewed manner… It was 10 years back when we tied up with NPCIL. But now there is a renewed energy to it," he said. Indian Oil's focus on nuclear power comes at a time the government plans to set up 22 GW of nuclear power by 2032 and 100 GW by 2047, up from the current 8.7 GW. State-run major NTPC Ltd set up a subsidiary called NTPC Parmanu Urja Nigam Ltd earlier this year. With the government planning to open up the space for private players, several conglomerates and renewable energy majors are keen on this space. Last month, Mint reported that companies including Reliance Industries, Adani Group, Greenko, Vedanta, HPCL-Mittal Energy Ltd, JSW Group and Hindalco Industries have responded to NPCIL's RFP to set up two units of 220-Mwe pressurized heavy water reactor (PHWR) BSRs. The Union budget for FY26 announced a ₹20,000-crore Nuclear Energy Mission for research and development of SMRs. The full budget for FY25 in July also proposed the government partnering with the private sector to develop SMRs, while the interim budget in February announced funding of ₹1 trillion for R&D in this space. A report by SBICAPS in April had said that although nuclear energy provides high-quality, reliable power at low operational cost, historically, these advantages have been overshadowed by concerns over safety, capital cost, and fuel supply. However, surging demand from AI data centers and crypto, coupled with its unique low-carbon baseload capability apt for thermal plant replacement, has driven a resurgence of interest. "This revival is most pronounced in China, with 30 GW of reactor capacity under development, and growing interest in India and Turkey, while Europe remains cautious," it said, adding that given the current installed base of around 8 GW and only 7 GW of the 36 GW planned capacity currently under construction, significant acceleration is required. Indian Oil is not interested in in acquiring Rosneft's stake in Nayara Energy, Sahney said in response to a query. "Its an open offer, it's in the market... I am totally not interested; so, we have totally not inquired about it," he said. In March, The Economic Times reported that Russia's state-owned energy major Nayara Energy, in which it acquired a 49.13% stake, is looking to exit the Indian venture, as due to sanctions, the Russian company has not been able to repatriate earnings from Nayara Energy in the past few years. He also said that Indian Oil and the domestic oil and gas industry are now confident of navigating any oil supply crisis situation, after smoothly handling the volatility during Israel-Iran conflict last month. He added that as India has significantly diversified its oil imports from nearly 40 countries, state-run refineries including Indian Oil's Panipat refinery are well-equipped to handle diverse crude barrels. The refining capacity of the Indian Oil group stands at 80.75 million metric tonne per annum (mmtpa), including 10.50 million tonne annual refining capacity of its subsidiary Chennai Petroleum Corp. Ltd (CPCL). It is also undertaking the expansion of its Panipat refinery from 15 mmtpa to 25 mmtpa.
Indian Express
25-06-2025
- Business
- Indian Express
Bihar to get its first nuclear power plant as part of national SMR rollout
Bihar will be among the first six states in India will get its first atomic plant under the country's new Nuclear Energy Mission. On Tuesday, Union Power Minister Manohar Lal Khattar announced a Small Modular Reactor (SMR)-based nuclear power plant in the state following the Centre's approval. The announcement comes ahead of assembly election in Bihar and comes after a meeting of eastern region power ministers, which included representatives from Bihar, West Bengal, Jharkhand, Odisha, and Andaman & Nicobar Islands. He confirmed that the Centre had accepted Bihar's request for a nuclear plant, stating: 'If the Bihar government sets up a nuclear power plant, the Central Government is fully prepared to provide support.' Khattar added that Bihar had formally requested such a facility and the Centre would assist in its establishment. Details regarding the site and scale of the plant are expected to be finalised in the coming stages of project development. Announced in the Union Budget 2025-26 with a Rs 20,000 crore allocation, the Nuclear Energy Mission aims at expanding clean and reliable nuclear power across the country and strengthen regional energy security. 'The government's goal is to set up at least one nuclear power plant in every state to ensure the country's energy security,' the Union Power Minister said adding: 'As the country's growth rate increases, so does electricity demand. Nuclear power is a reliable, sustainable, and long-term energy option.' SMRs are a newer generation of nuclear technology designed to be more flexible and cost-effective than traditional large-scale reactors, experts say. They can be deployed in smaller grids and are considered safer due to their advanced design. Khattar also said that the government has prepared a comprehensive power vision for 2035, covering thermal, solar, wind, storage, and nuclear energy projects. The decision is part of a broader policy effort to diversify India's energy mix and address rising electricity demand with advanced nuclear technology. For Bihar, which has historically struggled with power deficits and infrastructure challenges, the project represents a significant shift. Officials say the plant could help provide a more stable electricity supply and support the state's industrial ambitions. Alongside the nuclear plant, the Centre has also approved a 1,000 MW battery storage capacity project in Bihar, aimed at enhancing grid stability and supporting renewable energy integration. The government will provide viability gap funding of Rs 18 lakh per MW for this initiative. This focus on battery storage comes just days after Prime Minister Narendra Modi, during his visit to Siwan on June 20, laid the foundation stone for a 500 MWh Battery Energy Storage System (BESS) project in Bihar. Union Power Minister Khattar, while making the SMR announcement, also praised the Bihar government for its recent progress in the power sector, noting the installation of eight million smart meters and a significant reduction in technical and commercial losses. 'Bihar was lagging behind in power sector but it has done a considerably good job,' he added. The Union minister further assured that, in recognition of these reforms, the Centre has agreed to supply Bihar with an additional 500 MW of electricity for the next six months to help meet peak summer demand, and that states facing power shortages would be provided adequate supply from the central quota.
