In an effort to promote greener energy, India is considering lifting a restriction on foreign investment in its nuclear power business and allowing more domestic private firms to participate. This topic is relevant for the IAS exam energy segment of GS paper III.
Foreign Investment in Nuclear Industry
- The government panel, which was established by the think tank Niti Aayog and is led by Prime Minister Narendra Modi, has proposed the measures.
- The government has a major influence over the creation and management of nuclear power plants in India under the Atomic Energy Act of 1962. Domestic private enterprises are permitted to take part as “junior equity partners” by contributing materials and aiding in construction.
- In order for local and international private enterprises to supplement nuclear power generation by public companies, the panel has suggested revisions to the Act and to India’s foreign investment rules.
- The emphasis, according to the officials, is on private engagement through small modular reactors (SMRs) to expedite the creation of nuclear energy, which makes up about 3% of India’s overall power production.
- As per the Department of Atomic Energy, previously, several foreign companies including Westinghouse Electric, GE-Hitachi, Electricite de France and Rosatom were interested in participating in the country’s nuclear power projects as technology partners, suppliers, contractors and service providers.
- State-run Nuclear Power Corp of India Ltd. (NPCIL) and Bharatiya Nabhikiya Vidyut Nigam are the only two nuclear power generators in India. Thermal power company NTPC and oil marketing firm Indian Oil Corp, both government-controlled, have formed partnerships with NPCIL for nuclear power.
Small Modular ReactorsÂ
Nuclear reactors that are smaller in size and have a modular architecture are known as Small Modular Reactors (SMRs). SMRs are normally produced in a factory and then transported to their deployment site, unlike conventional large-scale nuclear reactors. Compared to their larger cousins, they are intended to be more adaptable, scalable, and economical.
Main Benefits of SMRs:
- Size and Modularity: SMRs are more compact and typically have an electrical power generation capacity of 10 to 300 megawatts (MW). Their modular architecture makes it possible for future growth with the addition of additional modules as well as simpler fabrication and deployment.
- Enhanced Safety: SMRs frequently have cutting-edge safety measures including passive cooling systems and inbuilt safety features. Additionally, their lower size may enable better management of nuclear reactions and may lessen the effects of mishaps.
- Flexibility and Versatility: SMRs can be installed in a variety of locations, including rural areas, commercial buildings, and microgrids. They are appropriate for niche markets when the demand for electricity is lower than what larger reactors can supply because of their lesser capacity.
Conclusion
The future’s most significant and scarce nuclear fuel, thorium, is a gift to India. It cannot afford to miss the chance to become the global energy hub, which, when combined with the largest youth population, will be India’s response to becoming the world’s most powerful economy.
Foreign Investment in Nuclear Power Industry [UPSC Notes]:- Download PDF Here
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