Budgetary cuts to the Department of Atomic Energy could affect nuclear fuel imports, payments to vendors of the Kudankulam Nuclear Power Plant and other critical projects, according to a top official's response to a parliamentary panel that has termed the shortfall in financial allocation as a "cause for grave concern".
The parliamentary standing committee on Science & Technology, Environment, Forests and Climate Change, which tabled its report in the Rajya Sabha on Friday, looked into the Demands of Grant of the Department of Atomic Energy (DAE).
The DAE had made a projected demand of Rs 40,259.05 crore but was allocated Rs 26,691.70 crore, a reduction of 33.70 per cent.
"The Committee was informed that the Department (DAE) had made a projected demand of Rs 40,259.05 crore for budgetary estimate 2020-21 against which an amount of Rs 26,691.70 crore has been allocated, registering an overall reduction of Rs 13,567.35 crore i.e., 33.70 per cent less than the projected demand of the department," the panel said, observing that the insufficient budgetary allocation for DAE was a "cause for a grave concern".
It further said, "Approximately, 41 per cent of this shortfall amount of Rs 13,567.35 crore is the revenue expenditure and 59 per cent affects the projected capital expenditure."
The panel, headed by former Environment and Forests Minister Jairam Ramesh, asked the DAE about the impact on account of shortfall in budgetary allocation.
In response, the DAE secretary said revenue expenditure shortfall will mainly affect fuel imports from M/s Kazatomprom, M/s Cameco, producers and sellers of uranium based in Kazakhstan and Canada respectively.
India imports uranium from Kazakhstan and Canada for domestic reactors under the International Atomic Energy Agency (IAEA) safeguards.
The revenue expenditure also includes India's contribution to the international ITER project that involves 35 countries for nuclear fusion research and related engineering works.
The official added that the capital expenditure shortfall of Rs 7988.49 crore will affect payment to vendors of the Kudankulam Nuclear Power Plant (KKNPP units 5 and 6) and the Pressurised Heavy Water Reactor (PWHR) programme under which 10 more 700 MW power reactors are being built.
This also includes the ambitious Prototype Fast Breeder Reactor (PFBR) and capital projects like the National Fuel Complex in Kota, Russian state credit and different research and development activities.
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