Source: The post India’s nuclear power challenges and proposed reforms has been created, based on the article “C Raja Mohan writes: The story of India’s atomic slide – and an opportunity to bounce back” published in “Indian Express” on 5th February 2025.
UPSC Syllabus Topic: GS Paper3- Infrastructure
Context: The article discusses India’s nuclear energy challenges and reforms. It highlights past policy mistakes, global restrictions, and outdated laws. It supports amending the Atomic Energy Act and CLNDA to allow private investment, boost nuclear power, and drive technological growth like the space sector.
For detailed information on India’s Nuclear Energy Program read this article here
What are the key issues in India’s nuclear power sector?
- Historical Achievements and Current Stagnation: India was the second Asian nation to build a nuclear power plant in 1969 but has failed to meet its nuclear energy goals. Currently, India’s nuclear power capacity stands at about 8,200 MW, significantly less than its 2000 target of 10,000 MW.
- International and Domestic Challenges: The Nuclear Non-Proliferation Treaty (NPT) in 1970 restricted India’s access to nuclear technology. Furthermore, India’s 1974 nuclear test led to sanctions and reduced international cooperation, negatively impacting nuclear capacity growth.
- Legislative Obstacles:
- The Civil Liability for Nuclear Damage Act (CLNDA) in 2010 made nuclear projects risky. It allowed power plant operators to sue equipment suppliers in case of accidents. This was different from global norms, where only operators handle liability. Foreign and private investors avoided India’s nuclear sector due to this law.
- Atomic Energy Act of 1962 : This law makes nuclear energy a government monopoly. The Department of Atomic Energy (DAE) controls all nuclear activities and funding. This limits private investment, slows innovation, and prevents the creation of a strong nuclear industry.
- Comparison with Other Countries: Nations like China and South Korea have far surpassed India in nuclear capacity, with 58,000 MW and 32,000 MW respectively. This stark contrast highlights the effects of India’s constrained nuclear policy and regulatory environment.
What changes did the Finance Minister propose?
Amendment of Two Laws: The Finance Minister proposed changes to the Atomic Energy Act (1962) and the Civil Liability for Nuclear Damage Act (2010) to revive India’s nuclear sector.
Increase in Nuclear Power Capacity: She set a target of 100,000 MW by 2047, a major increase from 8,200 MW today.
How could these changes impact India’s technological growth?
Encouraging Private Participation: The reforms aim to remove government monopoly and allow private companies like Tata, L&T, and BHEL to build nuclear power plants.
Lessons from Space Reforms: Similar to space sector liberalization, nuclear reforms could boost investment, innovation, and efficiency.
Question for practice:
Examine the key challenges in India’s nuclear power sector and how proposed legislative reforms could impact its growth.
