India’s plans to expand its nuclear energy sector

Source: The post India’s plans to expand its nuclear energy sector has been created, based on the article “Having private participation in India’s nuclear energy” published in “The Hindu” on 1st October is 2024

UPSC Syllabus Topic: GS Paper 3- Infrastructures- Energy

Context: The article discusses India’s plans to expand its nuclear energy sector by involving private companies in research and development. It highlights legal challenges, regulatory issues, and the need for legislative changes to attract investments while ensuring safety and accountability in nuclear power generation.

For detailed information on India’s Nuclear Energy Programread this article here

What is the Indian Government’s plan for expanding nuclear energy?

1. The Indian government plans to expand nuclear energy by partnering with the private sector.
2. The focus is on developing Bharat Small Reactors (BSR) and Bharat Small Modular Reactors (BSMR).
3. This initiative aligns with India’s goal to achieve 500 GW of non-fossil fuel energy by 2030, as pledged at COP26.
4. Private sector involvement aims to attract $26 billion in investments.
5. Currently, private participation is limited to construction and procurement, not research and development, due to the Atomic Energy Act (AEA).

What is the current legal framework for nuclear energy in India?

1. The Atomic Energy Act (AEA), 1962 gives the Indian government control over nuclear energy activities.
2. Section 3(a) of AEA restricts private sector involvement in research, development, and use of atomic energy.
3. The Department of Atomic Energy (DAE) and Nuclear Power Corporation of India Limited (NPCIL) manage nuclear energy infrastructure.
4. Private participation has been limited to engineering, procurement, and construction (EPC) roles, like Megha Engineering & Infrastructures and Reliance.
5. Legal reforms are needed, as private investment in Small Modular Reactors (SMRs) requires a conducive regulatory framework, per a 2023 DAE-NITI Aayog report.

What are the challenges for nuclear energy in India?

1. Legal Restrictions: The Atomic Energy Act (AEA) of 1962 restricts private sector involvement in nuclear energy. Section 3(a) of the AEA gives sole control of nuclear energy to the central government, prohibiting private participation in research and development.
2. Regulatory Independence: The Atomic Energy Regulatory Board (AERB) oversees radiation protection, but concerns exist about its lack of independence. The Nuclear Safety Regulatory Authority Bill of 2011, which aimed to address this, was never passed.
3. Investment Uncertainty: The Supreme Court’s dismissal of the Sandeep T.S. vs Union of India & Ors. petition in 2024 upholds restrictions on private participation, potentially discouraging investment in nuclear energy.
4. Liability Concerns: The Civil Liability for Nuclear Damage Act (CLNDA) of 2010 is being challenged in court. Critics argue that it violates liability principles and raises safety concerns, further creating uncertainty for private investors.
5. Safety Risks: Past nuclear disasters, such as Chernobyl and Fukushima, emphasize the risks associated with nuclear reactors. These events underscore the importance of stringent safety measures for any expansion of nuclear infrastructure.

Question for practice:

Examine the legal and regulatory challenges that India faces in expanding its nuclear energy sector, especially in involving the private sector in research and development.