Understanding Foreign Investment in Nuclear Industry

• A government panel, constituted by the reputed think tank Niti Aayog and chaired by Prime Minister Narendra Modi, has put forth these recommendations.
• As per the Atomic Energy Act of 1962, the government has considerable control over the establishment and operation of nuclear power plants in India. Domestic private companies are allowed to contribute as “junior equity partners”, providing materials and assisting in construction.
• The panel has suggested amendments to the Act and the country’s foreign investment policies to allow local and international private companies to contribute to nuclear power production by public enterprises.
• According to officials, the focus is on private participation through Small Modular Reactors (SMRs) to accelerate the development of nuclear energy, which currently constitutes about 3% of India’s total power generation.
• In the past, many foreign companies such as Westinghouse Electric, GE-Hitachi, Electricite de France, and Rosatom have shown interest in participating in India's nuclear power projects as technology partners, suppliers, contractors, and service providers, as stated by the Department of Atomic Energy.
• Currently, Nuclear Power Corp of India Ltd. (NPCIL) and Bharatiya Nabhikiya Vidyut Nigam are the only two nuclear power generators in India. State-controlled thermal power company NTPC and oil marketing company Indian Oil Corp have formed alliances with NPCIL for nuclear power.

Exploring Small Modular Reactors

Small Modular Reactors (SMRs) are essentially nuclear reactors that are smaller in size and have a modular design. Unlike traditional large-scale nuclear reactors, SMRs are usually manufactured in a factory and then transported to their deployment site. They are designed to be more flexible, scalable, and cost-effective compared to their larger counterparts.

Key Advantages of SMRs:

• Size and Modularity: SMRs are smaller and typically have an electrical power generation capacity ranging from 10 to 300 megawatts (MW). Their modular design facilitates future expansion with the addition of more modules and simplifies manufacturing and deployment.
• Enhanced Safety: SMRs often come with advanced safety features such as passive cooling systems and built-in safety components. Additionally, their smaller size can lead to better control of nuclear reactions and potentially minimize the impact of accidents.
• Flexibility and Versatility: SMRs can be installed in various settings, including rural areas, commercial establishments, and microgrids. Their lower capacity makes them suitable for niche markets where the electricity demand is less than what larger reactors can provide.

Conclusion

India is blessed with thorium, the most valuable and scarce nuclear fuel of the future. It is a golden opportunity for the country to become a global energy hub, which, coupled with the largest youth population, can pave the way for India to emerge as the world's strongest economy.