MNCs may build N-power plants

Import of uranium is the alternative: Plan Panel.

As part of a major thrust to enhance nuclear power generation, the government is exploring the option of allowing foreign companies to set up nuclear power plants in India. The alternative is to import uranium, the fuel required.

Officials at the Planning Commission, which is finalising the energy policy, said a road map was being drawn up, which envisaged the addition of an additional 20,000 MW by 2012. The policy is expected to be announced by the middle of next month.

The only hurdle, officials said, would be that India was not a signatory to the Nuclear Non-Proliferation Treaty (NPT). The way out being suggested is that the country sign the NPT for the purpose of hiking power capacity, while leaving the existing indigenous capacity untouched.

"If the financial terms are made attractive enough, companies will find it a very good option," said officials.

Allowing the private sector or other countries to set up plants in India will require amendments to the law. But that should not be a problem, they added.

"The share of nuclear power in the overall capacity profile will need to be increased significantly. The economics of generation and the resultant tariff will be, among others, important considerations. Public sector investments to create nuclear generation capacity will need to be stepped up. Private partnership will also be facilitated to see that not only are the targets achieved, but also exceeded," says the recently released National Electricity Policy.

The installed capacity for nuclear power is 2,720 MW currently and is expected to increase to 6,780 MW by 2008. The government has a target of enhancing the capacity to 10,000 MW by 2012 and to 20,000 MW by 2020.

Nuclear power is an established source of energy to meet the base load demand and the cost of electricity generated falls over time.

France, for instance, gets about 75 per cent of its electricity from nuclear energy. It has 59 nuclear reactors operated by Electricite de France, the state-owned energy monopoly. The cost of nuclear-generated electricity in France fell by 7 per cent from 1998 to 2001.

Nuclear glow

The hurdles

• MNCs cannot build nuclear power plants here as India is not a signatory to the NPT

The way out

India can sign the NPT for hiking capacity, while leaving indigenous capacity untouched