Ask for amendment of the Atomic Energy Act and rule changes to
allow external commercial borrowing in the nuclear sector.
Nuclear companies from the US, Russia and France, as well as Indian power majors, have unanimously appealed to the Government of India (GoI) for various changes in the rules to facilitate foreign and private sector investment.
They want amendment of the Atomic Energy Act, 1962 and rule changes to allow external commercial borrowing in the nuclear sector. Also, issuance of guidelines by Reserve Bank of India for transfer of technology and change in the Custom Tariff Act, where certain equipment and substances are on a negative list.
These companies, who are keen to tap the opportunities in India’s nuclear sector, which is expected to have generation capacity of 63,000 Mw by 2032 from the present level of 4,120 Mw, have made these pleas in recent meetings with the government.
Foreign companies are eager to be part of the proposed nuclear addition in India, with an estimated 38 new reactors required. India is the third country after China (125 new reactors) and Russia (44 new reactors) where there is a massive requirement.
So far, the state-run Nuclear Power Corporation has tied up for two reactors from the US for projects in Gujarat and Andhra Pradesh, while Russia is to supply the reactor for the Kudankulam project. Besides, French major Areva has proposed to supply two reactors of 1,650 Mw each for NPC’s projects in Rajasthan and Maharashtra. Indian companies such as Tata Power, Reliance Power, GMR, Lanco and a couple of others have been holding talks with the foreign companies, as they are not allowed to develop nuclear projects independently, unless the Atomic Energy Act is amended.
A top government source told Business Standard that “Foreign nuclear companies, in particular, pressed the need for a clarity on risk and liabilities, concessionary loans and loan guarantees, and clarity on the regulatory framework. The government has already cleared the civil nuclear liability bill, which will be presented to Parliament soon. Companies also emphasised the need for a special nuclear policy providing a legal and regulatory framework for investment in nuclear sector. “
Both foreign and Indian private sector companies have called for instilling confidence in the Indian system regarding assistance in technology transfer, sustainable supply of fuel, compensation in the event of a nuclear accident and commitment on spent fuel reprocessing.
The US India Business Council (USIBC), which recently organised the visit of a 50-member delegation comprising US nuclear companies have argued in favour of one autonomous body to deal with the requirements of the sector. “It is important to create a favourable view of the nuclear sector. Besides, spent fuel processing is a crucial element,” a USIBC office bearer said.
