Batting for rapid expansion of nuclear power, Prime Minister's Economic Advisory Council (PMEAC) today suggested speeding up the process of regulatory changes to enable entry of private companies in the sector.
"There is an urgent need to make the necessary regulatory changes quickly, so that investment including that from established private companies interested in this business, can begin to flow," said the PMEAC in its Review of the Economy 2009-10 released by its Chairman C Rangarajan.
Currently, state-owned Nuclear Power Corporation of India (NPCIL) runs 18 nuclear plants across the country and has signed up with state-run National Thermal Power Corporation and Indian Oil Corporation for joint ventures to build nuclear plants.
As per the Atomic Energy Act, private companies can team up with NPCIL as junior partners to set up atomic plants.
Noting that nuclear power generation has longer gestation periods, the council favoured faster scaling up of the sector.
"It is to be noted that we are a net importer of fossil fuels. Indeed, the extent of coal import has been rising. These fossil fuels have seen a large increase in their prices over the past several years and this process is likely to continue.
"It is, therefore, important that we are able to scale-up the nuclear power industry so that its contribution to generation can rise from the current meagre level of 2 per cent to something that is several times more by the end of this decade," the report said.
