The recent Request for Proposal (RFP) by the Nuclear Power Corporation of India Ltd (NPCIL) for Bharat Small Reactors (BSRs) is a right step in India's journey toward small modular reactors. However, restrictive conditions for private sector participation have raised many concerns. India has made many advancements in nuclear technology but the sector still faces structural challenges requiring transformative reforms.
Current Regulatory System of India's Nuclear Energy Sector
India's nuclear energy is governed by the Atomic Energy Act, 1962, granting exclusive control to the central government. The Atomic Energy Regulatory Board (AERB) ensures compliance with safety standards.
The Civil Liability for Nuclear Damage Act 2010 caps operator liability at ₹1,500 crore supported by the India Nuclear Insurance Pool (INIP) for accident coverage.
India adheres to IAEA safeguards under the Indo-US Civil Nuclear Agreement while maintaining strategic autonomy by staying out of the Non-Proliferation Treaty (NPT).
Nuclear energy provides reliable power and reduces dependence on coal, which supplies 55% of India’s energy. India has plans to increase nuclear capacity from 7.5 GW to 100 GW by 2047. Nuclear energy will diversify the energy portfolio and complement renewables in India.
As a low-carbon energy source, nuclear energy supports India’s commitment to net-zero emissions by 2070. It is essential for replacing coal and stabilizing grids reliant on intermittent renewables. Nuclear is expected to contribute 22.48 GW by 2031-32, aiding India’s target of 500 GW non-fossil energy by 2030.
The sector stimulates economic growth, with projects like the Kudankulam expansion creating jobs in construction, R&D, and manufacturing. The development of Bharat Small Modular Reactors (BSMRs) promises further innovation and employment opportunities.
Unlike solar and wind, nuclear energy offers consistent base-load power, stabilizing grids amid growing renewable energy penetration.
Nuclear energy strengthens India’s global energy diplomacy. Indigenous advancements like Prototype Fast Breeder Reactor at Kalpakkam show India's technological capabilities.
Despite decades of effort, nuclear energy contributes only 1.6% to India’s energy mix. Progress toward the ambitious 25% target by 2050 remains slow.
High capital costs, lengthy gestation periods, and restrictions under the Atomic Energy Act, 1962 deter private and foreign investment.
Limited domestic uranium reserves and geopolitical risks impact fuel security. Strategic nuclear fuel reserves remain insufficient.
Safety apprehensions, fueled by incidents like Fukushima, have led to protests and delays, such as at the Kudankulam plant. A robust waste management system is still absent.
Outdated technology and bureaucratic inefficiencies delay critical projects like the Prototype Fast Breeder Reactor, expected since 2012 but yet to be fully operational.
The levelized cost of nuclear energy remains high compared to renewables. Dependence on foreign technology limits India’s strategic autonomy.
A shortage of skilled professionals for reactor operations and R&D hinders scalability and safety compliance.
Amend the Atomic Energy Act, 1962, to enable private sector participation while maintaining strict regulatory oversight. A hybrid model combining public oversight with private innovation can fast-track projects.
Focus on advancing indigenous technologies like Fast Breeder Reactors and Small Modular Reactors through public-private collaborations. Integrating MSMEs into the supply chain can boost scalability.
Secure long-term uranium supplies through agreements with Russia, Kazakhstan, and Canada while developing thorium-based fuel-cycle technologies.
Streamline land acquisition under the Right to Fair Compensation Act, 2013, ensuring transparency, fair compensation, and sustainable rehabilitation.
Modernize regulatory frameworks to attract investment and ensure public trust. Strengthen the AERB's capacity for oversight and compliance.
Expand intake capacities of institutions like BARC to address workforce shortages. Enhanced R&D funding can further fast-track technological innovation.
Increase public outreach to build trust in nuclear energy’s safety, addressing concerns about waste management and disaster resilience.
India’s nuclear sector stands at a crossroads. It has immense potential to transform its energy sector. Certain things that are crucial to unlock the sector’s capabilities are--addressing policy bottlenecks, fostering private participation and advancing indigenous technologies. Nuclear energy will play a major role in India’s journey toward a sustainable, energy-secure and climate-resilient future.
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