Nuclear Power Policy Amendments in Winter Session

Context

The nuclear power industry in India is set to undergo a major change as there are two important amendments that are likely to be made during the next winter session. The civil liability nuclear damage act (CLNDA), 2010, and atomic energy act, 1962, amendments formulated to liberalise the nuclear energy ecosystem. This reformation is aimed at allowing the involvement of the private sector, bringing in foreign technology, and mobilising investments, thus overcoming the increasing demand of power that is reliable and clean with base-load and the renewables.

Amendments: The Importance of the Amendments.

These amendments are the first in the history of India that the involvement of create-generated power by the private entities would be permitted regarding its nuclear generation. The industry, which used to be mainly state-owned, is under pressure to transform as the renewable energy sources are intermittent and the sources of unreliable power that is carbon-free are necessary. Moreover, the liability environment will be relaxed under CLNDA, and this will likely make foreign suppliers who are afraid of entering the Indian market to facilitate technology transfer and cost effectiveness.

Difficulties in the Existing Nuclear Construct.

• Policy and Legal Constraints: Nuclear sector in India has been traditionally defined by the state monopoly ensured by the Atomic Energy act which restricts nuclear plants activity to state entities exclusively. In addition to this, the CLNDA 2010 holds suppliers liable heavily to the case of accident of a nuclear event and specifically, the Section 17(b) of CLNDA 2010 permits the operator to pursue them. This is a liability provision that has scared away foreign suppliers of equipment as well as limiting personal investment.
• Building Base-load Power Demand: The rising portion of renewables, although necessary to decarbonisation, is intermittent and thus needs a reliable base-load power to stabilise the grid. The use of coal has conventionally occupied this position, but the effects it has on the environment necessitate the adoption of alternative energy sources such as nuclear energy that is available 24/7 with little carbon emission.

Proposed Legal Amendments

• Easing the Civil Liability for Nuclear Damage Act (CLNDA): The modification is aimed at amending the supplier liability regime to decrease the risk and liability burden on the foreign and private suppliers. India is trying to open up to the nuclear technology giants of the world (Westinghouse and Framatome) by redefining or diluting its clauses such as Section 17(b). It is believed that this shift will trigger foreign investment and allow building future nuclear initiatives affordably.
• Amendment to the Atomic Energy Act, 1962: Now, the Atomic Energy Act limits the construction and operation of nuclear power plants to the government agencies only. The offered amendment is supposed to create a gateway to the investment and activity of the private sector, particularly of Small Modular Reactors (SMRs). This would result in the promotion of public-private partnerships which would hasten the addition of capacity and promote innovation in the sector.

Small Modular Reactors (SMRs): The Future of Nuclear Reactor.

• Definition and Characteristics: SMRs are small-sized nuclear reactors that are prefabricated and modular, which can be transported to the site of deployment and also be deployed in different sites. They can be scaled, built more easily and have better safety measures because of their reduced size. SMRs are especially well adapted to decentralised base-load generation that can supplement renewable power generation.
• Government Programs and Industry Spirit: India Nuclear Power Corporation of India Limited (NPCIL) has stated that it has plans to develop a local SMR design by 2024. The top privates like Reliance industry, Adani Power, and Tata Power have also shown interests in constructing SMR projects, which are seen as the beginning of a new nuclear energy development of hybrids.
• Global Context and Strategic Alignment: The drive by India towards the adoption of SMRs puts it on the same level with other nuclear technology giants in the world such as the US, Russia, France and China, which are developing SMR technology. This is vital to the energy security of India, technology sovereignty and climate commitments.

The Importance of Private and Foreign Participation.

• Capital Mobilisation: Nuclear projects demand a huge amount of capital investment, which can be an issue in terms of growth through a purely public structure. The opening of the tourism industry to the private sector will lessen the fiscal load on the government and bring fresh sources of investments.
• Technology Access and Innovation: The joint venture with international companies in the nuclear technology will provide availability of knowledge and transfer of newest and cost effective technology that can be used in the Indian energy requirements.
• Energy Mix Diversification and Climate Goals: The growth of the nuclear industry will provide diversification into the energy mix of India and reduce the dependence on coal, which will support the objective of India toward the net-zero carbon level by 2070.

Strategic Significance to India of Energy Security.

• Stable Base-load Power: Nuclear power provides stability in the grid and the constant supply of power, which is essential to the growth of the economy due to the fact that renewable power is intermittent.
• Geopolitical and Economic Benefits: The amendments will improve India in the global market in nuclear technology, domestic production in terms of the Make in India program, and create opportunities to become an SMR export center of developing nations.

Conclusion

The proposed changes in CLNDA and the Atomic Energy Act are likely to make a significant liberalisation of the nuclear energy policy of India. A combination of the protection of liabilities and the inclusion of the private and foreign involvement will modernise the nuclear power sector in India. This will enhance the clean energy transformation in the country as it will see to it that future power supply will be carbon-neutral, sustainable, and secure.

Source: The Indian Express

UPSC Mains Practice Question 

Q. Discuss the role of nuclear power in India’s energy security. How can recent policy amendments strengthen India’s nuclear energy sector while ensuring safety and sustainability?

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