In News:

The Prime Minister of India, Narendra Modi, has stated that the Government is moving towards opening the nuclear power sector for private participation, marking a major reform similar to earlier liberalisation of the space sector. The reform aims to strengthen energy security, clean energy transition, and technological leadership, while creating opportunities in small modular reactors (SMRs), advanced reactors, and nuclear innovation.

Background: Nuclear Power Sector in India

• Traditionally, nuclear power plants in India are owned and operated only by public sector entities:
  • Nuclear Power Corporation of India Limited (NPCIL)
  • Bharatiya Nabhikiya Vidyut Nigam (BHAVINI)

Proposed Legal Changes

To enable private sector entry, the Government has proposed amendments to:

• Atomic Energy Act, 1962 – Governs development, control, and regulation of nuclear energy.
• Civil Liability for Nuclear Damage Act, 2010 – Provides compensation mechanisms and fixes liability in case of nuclear incidents.

What is Nuclear Energy?

• Energy released during nuclear reactions:
  • Fission: Splitting of heavy nuclei (e.g., uranium, plutonium) – used in nuclear power plants.
  • Fusion: Merging of light nuclei (future potential).
• Nuclear fission produces large amounts of energy with low carbon emissions, making it crucial for clean baseload power.

Status of Nuclear Power in India

• Installed Capacity: ~8,180 MW
• Reactors: 24 nuclear reactors in operation
• Long-term Target: 100 GW nuclear capacity by 2047
• Under Construction:
  • 10 new reactors (≈8 GW) in Gujarat, Rajasthan, Tamil Nadu, Haryana, Karnataka, Madhya Pradesh
  • Approval for a 6 × 1208 MW nuclear plant in Andhra Pradesh in collaboration with the USA

Government Initiatives

• ?20,000 crore R&D mission for development of Small Modular Reactors (SMRs).
• Target to deploy at least five indigenously developed SMRs by 2033.
• NPCIL–NTPC Joint Venture:
  • National Thermal Power Corporation (NTPC) and NPCIL formed a JV named ASHVINI.
  • ASHVINI will build, own, and operate nuclear power plants, including the 4 × 700 MWe PHWR Mahi-Banswara Rajasthan Atomic Power Project.

Benefits of Private Sector Participation

• Faster Capacity Expansion: Mobilises large-scale private investment.
• Technological Advancement: Access to global expertise and innovation.
• Cost Efficiency: Competitive processes reduce delays and overruns.
• Energy Security: Reduces dependence on fossil fuels and supports climate goals.
• Clean Energy Transition: Strengthens India’s low-carbon energy mix.

Key Concerns

• Regulatory Challenges: Need for strong and clear regulatory oversight.
• High Capital Requirement: Large upfront costs and long gestation periods.
• Liability Issues: High operator liability under existing law deters investors.
• Safety & Security: Nuclear safety, waste management, and national security concerns.
• Public Perception: Fear of radiation risks and nuclear accidents.

Way Forward

• Clear Regulatory Framework: Transparent rules ensuring safety and accountability.
• Public–Private Partnerships (PPPs): Government oversight with private investment and operations.
• Phased Implementation: Pilot projects and SMRs before large-scale private entry.