Atom-Nirbhar India: Nuclear energy is critical for the future. The civil liability clause deters foreign participation

News: Meeting the net-zero carbon emissions pledge by 2070 requires an overhaul of both the logistics and electricity sectors to reduce reliance on fossil fuels.

So far the solar energy sector has received much attention when it comes to India’s transition to renewables, but without nuclear energy, India won’t be able to fulfil its pledge.

What are some recent developments that highlight India’s reliance on fossil fuels?

Two recent developments have brought India’s reliance on fossil fuel into sharp focus.

– The Russia-Ukraine conflict and the consequent surge in crude oil prices.

– The most recent IPCC report on climate, which highlights the energy sector’s large contribution to global warming.

What is the situation wrt nuclear energy in India?

It’s an area where India was off to an early start, developed relatively high indigenous capabilities in relation to other sectors, but subsequently didn’t put enough efforts into it.

Today, nuclear power contributes a mere 3% of the total electricity generated, and has a capacity of, 6780 MW.

Dependence on Russia: India’s main partner today is Russia. The Kudankulam nuclear plant, which supplies about 26% of the electricity from this source, operates in partnership with Russia. Going forward, the geopolitical situation makes it challenging to depend on just Russians.

Why India didn’t progress on the nuclear energy front?

Civil liability for nuclear damage: After the 2008 India-US civil nuclear deal, progress has been disappointing. The deal did open the pathway to a stable supply of uranium ore from Kazakhstan and Canada. However, the design of the subsequent bill on civil liability for nuclear damage killed the prospect of participation of Western firms.

What is the way forward?

Recent progress on creating small modular reactors (up to 300 MW) is making the possibility of rapid scale-up of nuclear energy quite feasible.

– SMRs will offer enhanced safety and simpler designs at lower capital costs.

These improvements will be harder to achieve with India’s pressurised heavy water reactors. Hence, India should begin by amending its nuclear liability legislation in a way that encourages investment by companies that are at the forefront of SMRs, which promise to lower the chance of unsafe release of radioactivity.

Source: This post is based on the article “Atom-Nirbhar India: Nuclear energy is critical for the future. The civil liability clause deters foreign participation” published in Times of India on 5th Apr 22.