Lagatar24 Desk
New Delhi: For the first time in history, India’s private sector has been given the green light to invest in nuclear energy. Finance Minister Nirmala Sitharaman announced this groundbreaking move during her Budget 2024 speech, stating, “Nuclear energy is expected to form a very significant part of the energy mix for Viksit Bharat.” This initiative aims to foster the development of small reactors and small modular reactors (SMRs), with the private sector playing a crucial role.
The NITI Aayog has long advocated for a more serious approach to small reactors. VK Saraswat, Member of Science and Technology at NITI Aayog, expressed his approval, saying, “Private sector involvement is a significant new opening.” He emphasized that atomic energy, with its low carbon footprint and reliable power supply, is essential for India’s energy future.
Bhuvan Chandra Pathak, Chairman and Managing Director of the Nuclear Power Corporation of India Limited (NPCIL), also welcomed the decision. “Allowing private sector partnership in atomic energy development is a very welcome move,” he said.
With climate change posing a growing threat, atomic energy, which produces electricity with almost zero carbon dioxide emissions, is being increasingly viewed as a viable alternative despite its high capital costs.
Ms. Sitharaman outlined the government’s plan to partner with the private sector to establish Bharat Small Reactors (BSR) and research and develop Bharat Small Modular Reactors (BSMR). The R&D funding announced in the interim budget will support these initiatives.
Currently, the Indian Atomic Energy Act of 1962 prohibits private sector participation in nuclear energy generation. However, Dr. Saraswat noted that today’s announcement paves the way for creating a supportive policy and legal environment to enable private sector contributions.
The Bharat Small Reactor is a 220 Megawatt Pressurized Heavy Water Reactor (PHWR), with 16 units already in operation. The significant development today is the inclusion of the private sector in these projects.
Until now, only government public sector undertakings like the National Thermal Power Corporation could partner with NPCIL to set up atomic plants, with NPCIL holding a 51% stake. Private sector involvement will open new financing avenues for these capital-intensive projects.
India has an installed nuclear power capacity of 6,780 Megawatts, according to the Atomic Energy Regulatory Board, with 22 operating reactors, including 18 PHWRs and four Light Water Reactors (LWRs).
If the budget proposals are accepted, India will collaborate with the private sector to develop small modular reactors. These factory-made SMRs can be assembled on-site, offering an ideal solution for large industries like cement and steel. While SMR development is underway globally, only Russia has operational units.
NPCIL experts indicate that the BSMR can be assembled in under four years, with an estimated cost comparable to the BSR at Rs 16 crores per megawatt. Initially, these private sector reactors may operate under a “Government Owned but Company Operated” (GOCO) model, with private investments, government-owned fuel, and government-managed spent fuel.
The Bhabha Atomic Research Center (BARC) in Mumbai is still designing the BSMR, which could potentially run on natural uranium. Several countries, including Russia, the USA, South Korea, and France, have expressed interest in offering their SMR technologies to India. Dr. Saraswat noted that 56 out of 98 identified SMR models worldwide are currently under active development.
