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The issue of allowing the private sector to participate in nuclear power generation independently of the government has been put on the backburner with the Centre withdrawing a minor amendment to the Atomic Energy Act, 1962, from the Cabinet at the last moment.

Confirming this, Minister for Information and Broadcasting Priya Ranjan Dasmunsi said, "Before the meeting started, the amendment was withdrawn."

The amendment would have enabled the private sector to take advantage of the Indo-US Civil Nuclear Agreement.

"We're not even talking of getting the private sector to build nuclear reactors. At the moment, India can buy reactors only from other states. But there are several US companies that have the technology. This will need to be reviewed. But not now," said a source.

The Atomic Energy Act, 1962, allows nuclear power generation only by a Central government company. In the Lok Sabha last month, replying to a question, Minister of State in the Prime Minister's Office, Prithviraj Chavan conceded that this would have to be reviewed through an amendment of the Act.

According to the existing law, private players can hold up to 49 per cent equity in any nuclear power generation company but the majority shares have to remain with the Centre.

A review of the Atomic Energy Act has been under consideration for the past 10 years. An expert committee, set up in 1997 under the chairmanship of scientist Raja Ramanna, had submitted its report in 1998.

This report was reviewed by an expert committee of the Department of Atomic Energy, which made some recommendations related to national security and strengthening the regulatory mechanism in the atomic energy sector.

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NUKE FACTS

Nuclear Power Corporation of India is the sole company generating nuclear power in the country

It is wholly owned by the Government of India

Its current installed capacity of 4,120 Mw is about 3 per cent of the country's generation capacity

Nuclear power capacity is proposed to be increased to 20,000 Mw by 2020

Operationalising civil nuclear cooperation could help India reach 40,000 Mw by 2020

Tata Power, Reliance Energy and GMR are keen to set up nuclear power plants, and so is the government-controlled thermal generation major NTPC

Entry of new players who want to set up plants independent of the government (they can set up plants in which the government has majority holding even now) will require an amendment to the Atomic Energy Act - a process that requires a majority in both Houses of Parliament