India's nuclear plans

The Modi government wants to boost nuclear energy production with a new nuclear liability fund to attract investment. The goal is to increase production capacity from the current 8.18 GW to 100 GW by 2047. New Delhi has already opened uranium supply and processing to the private sector, but critical issues remain like high costs, the lack of an independent regulatory authority, and the uncertainties surrounding next-generation modular reactors.

New Delhi (AsiaNews) – In recent days, India unveiled plans to establish a nuclear liability fund, a decision taken to attract massive private investments in the historically highly protected nuclear energy sector.

The goal is to change the stringent laws governing nuclear power in case of accidents in order to open the country to international cooperation and foreign investors.

This move follows previous announcements to end the state monopoly on the fuel cycle, part of broader reforms deemed crucial by Prime Minister Narendra Modi, who has set the ambitious goal of expanding nuclear power generation capacity 12-fold by 2047, aiming for at least 100 gigawatts of nuclear capacity, currently at 8.18 GW.

This expansion is in turn linked to India's energy transition projects, which seeks to achieve zero emissions by 2070.

The nuclear liability fund would cover compensation amounts for accidents exceeding 15 billion rupees (about US$ 169 million) owed by nuclear plant operators.

This instrument, which will be introduced through a new Atomic Energy Bill, would supplement the liability already in place for operators.

According to initial indications, the plan also aims to ease supplier liability rules under the Civil Liability for Nuclear Damage Act (CLNDA) of 2010, which until now have been considered a strong deterrent to foreign companies' participation.

The new legislation is expected to unlock both private domestic and foreign investments in the nuclear sector; large Indian conglomerates, including Tata Power, Adani Power, and Reliance Industries, are already drafting investment plans in anticipation of the new law.

In August, the Indian government also announced its intention to end a decades-long state monopoly on uranium supply and processing, allowing private companies to mine, import, and process uranium.

However, domestic reserves will not be sufficient to cover the projected needs for the sector's expansion, and a significant portion of the fuel will continue to be imported, requiring India to increase processing capacity.

Some challenges remain, however, the most immediate of which concern the legislative framework governing the nuclear sector.

Since nuclear projects entail high initial capital costs and longer development periods than alternative energy sources, this poses challenges for cost competitiveness and effective capital mobilisation.

The Atomic Energy Regulatory Board (AERB) remains subordinate to the Department of Atomic Energy (DAE). With the entry of the private sector, the establishment of an independent regulator separate from the DAE's commercial interests becomes crucial.

Nuclear plants are also exposed to climate risks, such as heat waves and droughts, which have forced temporary shutdowns in other parts of the world when cooling water temperatures become too high.

India is also investing in technologies such as modular reactors (SMRs), with the goal of developing at least five by 2033. But some studies warn that SMRs could generate larger and more radioactive waste per unit of energy than large, traditional reactors, although this issue is still debated in the scientific community.

Ultimately, gaining acceptance from Indian society will require the development of robust regulatory safeguards and adequate waste disposal infrastructure.

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• india
• nuclear power
• development
• uranium
• narendra modi
• regulation
• investments