Brief Context
Context The government is likely to move two crucial amendments in the laws governing the country’s atomic energy sector in the upcoming monsoon session of Parliament. India’s Need to Increase its Nuclear Capacity: Nuclear Capacity: India’s plans to increase its nuclear power capacity from the current 8,180 MW to 22,480 MW by 2031-32 and eventually 100 GW by 2047. Energy Demand Growth: Indias electricity demand is expected to increase 4-5 times by 2047, and nuclear power will help meet base-load
Source Content
Syllabus: GS3/Energy
Context
- The government is likely to move two crucial amendments in the laws governing the country’s atomic energy sector in the upcoming monsoon session of Parliament.
Legal Reforms Underway
- Easing Nuclear Liability Law (Civil Liability for Nuclear Damage Act, 2010): Its objective is to limit the liability of equipment vendors in case of a nuclear accident. Key Proposed Changes:
- Monetary Cap: Liability may be capped to the original contract value.
- Time Limit: Introduce a statute of limitations for how long liability applies.
- Amendment to the Atomic Energy Act, 1962: Its objective is to allow private and foreign players to enter nuclear power generation.
- Current Restriction: Only state-owned entities like NPCIL and NTPC Ltd can operate nuclear plants.
- Proposed Change: Permit minority equity participation by foreign/private entities in upcoming projects.
Need for the Changes
- NPCIL: India’s nuclear sector is governed by the Atomic Energy Act, 1962, under which only government-owned entities such as NPCIL can generate and supply nuclear energy.
- There has been no private sector involvement in India’s nuclear power sector so far.
- Foreign companies like GE-Hitachi, Westinghouse, and Framatome have avoided India due to open-ended liability concerns.
- Amending this is crucial to attract foreign investment and technology.
- These moves aim to unlock the potential of the Indo-US Civil Nuclear Agreement, signed nearly two decades ago.
- India intends to package these reforms as part of a wider trade and investment framework with the U.S., potentially leading to a trade pact.
Recent U.S. Regulatory Breakthrough
- Recently, the U.S. Department of Energy granted Holtec International a specific authorisation (SA IN2023-001) under 10CFR810.
- Implication: Holtec can now transfer unclassified SMR technology to Indian partners like Tata Consulting Engineers and L&T.
- This clears the path for design and manufacturing of small modular reactors (SMRs) in India.
- Significance: Positions India to co-develop and manufacture nuclear components domestically.
India’s Need to Increase its Nuclear Capacity:
- Nuclear Capacity: India’s plans to increase its nuclear power capacity from the current 8,180 MW to 22,480 MW by 2031-32 and eventually 100 GW by 2047.
- Energy Demand Growth: India’s electricity demand is expected to increase 4-5 times by 2047, and nuclear power will help meet base-load demand alongside renewables.
- India’s Targets: To reduce the emission intensity of its GDP by 44% by 2030 from the 2005 level.
- To achieve 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
- Roadmap for 100 GW: A roadmap is being developed with stakeholders, and while challenges remain, achieving the 100 GW target is seen as both ambitious and achievable
Conclusion
- These developments reflect a historic shift in India’s nuclear policy. By addressing legal and regulatory obstacles, India is poised to:
- Unlock foreign investment and advanced technology.
- Expand its clean energy portfolio through nuclear power.
- Reinforce strategic alignment with the U.S. under the civil nuclear framework.
Source: IE