Having private participation in India’s nuclear energy
Context:
The article discusses the government’s plan to involve private sector in developing technologies like Small Modular Reactors (SMRs) of the nuclear energy sector.
Relevance:
GS-01 GS-03 (Minerals and Energy resources, Nuclear technology)
Dimensions of the Article:
- India’s nuclear energy sector
- Legal and Regulatory Framework Governing Nuclear Energy
- Private Sector Participation: Opportunities and Challenges
- Regulatory Reforms and Safety Concerns
India’s nuclear energy sector:
- Nuclear energy is one of the largest source of electricity for India
- India has over 23 operable reactors and 7 which are still under construction.
- Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI) is currently constructing a 500MWe Prototype Fast Breeder Reactor at Kalpakkam, which will be world’s first thorium-based nuclear plant.
- Recently, the government had also allowed joint ventures with PSUs to enhance India’s nuclear program. And accordingly, Nuclear Power Corporation of India Limited (NPCIL) is now in two joint ventures with the National Thermal Power Corporation Limited (NTPC) and the Indian Oil Corporation Limited (IOCL).
Legal and Regulatory Framework Governing Nuclear Energy
- With the Union Budget for 2024-25, the government proposed to involve the private sector in developing Bharat Small Reactors (BSR), Bharat Small Modular Reactors (BSMR), and other advanced nuclear technologies.
- This move was strategically done to meet India’s commitment made at the COP26 summit in Glasgow, to reduce carbon emissions and achieve 500 GW of non-fossil fuel energy by 2030.
- Atomic Energy Act, 1962 (AEA) gives legal foundation for India’s nuclear energy sector. It gives exclusive control over the production, development, and use of atomic energy to the central government.
- However, the act had not mentioned private companies engagement in nuclear energy activities.
- Section 3(a) of the AEA explicitly mentioned that only the central government has the authority to manage atomic energy operations.
- Recently, the Supreme Court of India reaffirmed this stance by dismissing a petition challenging the provisions of the AEA.
- In the case Sandeep T.S. vs Union of India, the Court upheld the law, emphasizing that the control of atomic power must be carefully managed by the government due to its risks.
- Furthermore, there is a pending constitutional challenge to the Civil Liability for Nuclear Damage Act, 2010 (CLNDA), which adds to the uncertainty surrounding private sector participation in nuclear energy.
Private Sector Participation: Opportunities and Challenges
- The Atomic Energy Act, 1962, gives full control of nuclear projects to central government and its agencies (Department of Atomic Energy (DAE) and Nuclear Power Corporation of India Limited (NPCIL)).
- The private sector is only limited for construction and procurement.
- According to a report by DAE and NITI Aayog, the government can encourage private involvement by creating a more favorable regulatory framework and establishing clear guidelines for nuclear liability.
- Nuclear Power Corporation of India Limited (NPCIL) has historically involved private companies only in the construction of nuclear plants, like working with Megha Engineering and Reliance for building infrastructure.
Regulatory Reforms and Safety Concerns
- High-profile accidents like Chernobyl in 1986 and Fukushima in 2011 have highlighted the risks involved in operating nuclear reactors.
- These problems even magnify especially when nuclear reactors are located near human settlements.
- In India, the Atomic Energy Regulatory Board (AERB) is responsible for overseeing the safe use of nuclear energy and technology.
- Although the Nuclear Safety Regulatory Authority Bill was introduced in 2011 to create a more independent regulatory body, it has not yet been passed into law.
- Under the Civil Liability for Nuclear Damage Act (CLNDA), the operator (typically a government entity) is held liable for any damage caused by a nuclear accident, and compensation is provided to affected parties through a “no-fault” liability system.
- This means that victims are compensated regardless of who is at fault for the accident. (However, the constitutionality of this Act is still being challenged in court, and the case has been pending for over a decade).
- Meanwhile, the Indian Supreme Court, in the case of G. Sundarrajan vs Union of India and Ors. (2013), addressed the safety concerns surrounding the Kudankulam Nuclear Power Plant in Tamil Nadu.
- While the Court allowed the plant to operate, it directed the DAE and NPCIL to conduct regular inspections and submit reports to ensure safety.
- This case highlights the need for strict regulatory oversight of nuclear plants to prevent disasters and protect nearby communities.
Way forward:
- Nuclear power is crucial for India’s energy security and sustainability.
- The government is focusing on SMRs, which are safer, more cost-effective, and suitable for areas with limited infrastructure, offering a promising future for nuclear energy in India.
- India should also focus on policy changes to allow private sector participation in R&D, and ensuring a clear nuclear liability and safety framework to attract investment.
