As part of a major push toward nuclear power generation, India is considering ending the state monopoly in uranium fuel procurement for nuclear power plants by allowing private companies to mine, process, and import uranium, government sources told Reuters on Wednesday.
Even if the government moves to allow private companies to mine and process uranium, the state will maintain its control over the reprocessing of spent uranium fuel and managing of plutonium waste, as is the global practice in these cases, according to Reuters’ sources.
India will need to amend five separate laws and regulations to allow private firms to procure and process uranium fuel, including such regulating the power sector and foreign investments.
Currently, India relies on coal to meet more than half of its power demand, but it plans to boost its nuclear power-generating capacity from 9 gigawatts (GW) now to as much as 100 GW by 2047. If this goal is achieved, nuclear power will meet 5% of India’s constantly rising electricity demand.
In February, the federal budget outlined plans for a significant push toward nuclear energy as part of India’s long-term energy transition strategy. The government now targets the country to have 100 GW of nuclear power generation capacity installed by 2047, “positioning nuclear energy as a major pillar in India’s energy mix,” the cabinet said early this year.
India has been considering various steps to open the sector to private firms, in view of its target to significantly boost its civil nuclear program and power generation capacity.
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, especially U.S. companies, to its nuclear energy sector.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
