Business Standard

Chain reaction starts in power policy

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Siddharth ZarabiUtpal Bhaskar New Delhi
Panel chaired by PM moots change in framework to allow pvt participation in nuke plants.
 
Preparing the ground for private sector participation in nuclear power generation, the Energy Coordination Committee chaired by Prime Minister Manmohan Singh has mooted a change in the existing legal and policy framework.
 
The suggestion is based on the view that a strong nuclear power production base will help in providing stability to energy pricing.
 
The high-powered committee has observed that there are several examples the world over of private sector involvement in nuclear power generation and there is no apparent reason as to why India should not do the same.
 
At the moment, atomic energy is exclusively reserved for the Centre by the Constitution. Appendix-III of the Industrial Licensing Policy reserves this strategic utility for the public sector.
 
"This will require legislative and policy amendments that will have to be formulated in order to propose opening up this sector to private players," government sources told Business Standard.
 
Seen in the context of the recent nuclear deal with the US, the move will boost nuclear power generation because some leading corporates have already shown interest in this business. This move will also end the monopoly of the state-run Nuclear Power Corporation of India Ltd (NTPC).
 
Under the Indo-US nuclear deal, India has agreed to place 14 civilian plants under international inspection. In return, the US will offer nuclear technology and fuel to India. Adequate fuel supplies are crucial for nuclear power plants.
 
Recently Tata Sons chairman Ratan Tata had indicated the willingness of his group to operate a nuclear power plant in the country. NTPC Ltd also has plans to set up a 2,000 Mw capacity nuclear plant by 2017.

 

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First Published: Mar 09 2006 | 12:00 AM IST

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