(MENAFN- KNN India)
New Delhi, Feb 3 (KNN) Finance Minister Nirmala Sitharaman announced significant reforms to India's nuclear energy sector in the recent budget presentation, including plans to amend key legislation and establish a nuclear energy mission.
The proposed amendments to the Atomic Energy Act (1963) and the Civil Liability for Nuclear Damage Act (2010) aim to attract foreign investment and enhance private sector participation in the nuclear industry.
The government has set an ambitious target of generating 100 gigawatts of nuclear energy by 2047, with a specific focus on developing small modular reactors (SMRs).
To facilitate this initiative, the finance minister allocated Rs 20,000 crore for research and development, with plans to operationalise at least five indigenously developed SMRs by 2033.
These compact nuclear reactors represent a new generation of technology offering cost-effective and scalable energy solutions.
A key aspect of the reform involves addressing the Civil Liability for Nuclear Damage Act's current provisions, which have historically deterred private sector involvement by extending liability to nuclear suppliers in addition to operators in the event of nuclear damage.
The amendment could potentially alter the Nuclear Power Corporation of India's position as the sole operator of nuclear reactors, though the government is expected to maintain a strong presence in this strategic sector.
Prime Minister Narendra Modi characterised the decision to promote private sector participation as "historic," emphasising its potential contribution to civil nuclear energy development.
The announcement gains additional significance as it precedes the Prime Minister's proposed visit to the United States and follows the recent US decision to remove restrictions on key Indian nuclear research institutions, including the Bhabha Atomic Research Centre and Indira Gandhi Atomic Research Centre.
The expansion of nuclear power capacity aligns with India's broader environmental goals, particularly its commitment to achieving net-zero emissions by 2070.
According to Anil Kakodkar, former chairman of the Atomic Energy Commission, the government's decision reflects its recognition of nuclear energy's crucial role in realising the vision of 'Viksit Bharat' while meeting environmental obligations.
The initiative is expected to support the decarbonisation of hard-to-abate industries such as steel and cement manufacturing.
These reforms mark a significant shift in India's nuclear energy policy, potentially opening new avenues for international collaboration and domestic private sector participation while maintaining necessary strategic oversight.
The success of this initiative will largely depend on the effective implementation of the proposed amendments and the government's ability to balance commercial interests with security considerations.
(KNN Bureau)
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