India is close to opening its nuclear power sector to private investment as it seeks to boost installed nuclear capacity tenfold by 2047, which is estimated to cost $214 billion (19.28 trillion Indian rupees).
The bill to open the nuclear energy sector to private investment is expected to be passed by the federal government this week, with debates in Parliament set to begin later this month, Jitendra Singh, India’s
Science and Technology Minister who is also in change of atomic power, told Bloomberg News in an interview published on Monday.
India’s amended energy law is aimed at facilitating “the private sector, to bring in ease of business for them” in the nuclear power sector, the minister told Bloomberg.
Earlier this year, a panel set up by India’s power ministry said in a report that India’s goal to hike installed nuclear power capacity to 100 gigawatts (GW) by 2047, up from just 8.8 GW now, would require as much as 19.28 trillion Indian rupees, or $214 billion at current exchange rates, of cumulative capital.
“With the country’s proven research, engineering and execution capabilities, the goal is achievable,” the panel said but noted several challenges, top of which was the current lack of private capital participation.
The Atomic Energy Act, 1962 currently does not allow participation of private sector or even state governments.
“The private sector has abundant capital, and inherent efficiency in timely construction and innovation adaption,” the panel said.
India has been considering various steps to open the sector to private firms.
The government is considering allowing foreign companies to own up to a 49% stake in Indian nuclear power plants.
India’s government could also accelerate the construction of nuclear power plants by attracting foreign firms if it changes the liability laws. India plans to remove an unlimited liability clause in its nuclear energy laws in a bid to attract foreign firms to its nuclear energy sector.
By Tsvetana Paraskova for Oilprice.com
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