REVOLUTIONIZE INDIA’S NUCLEAR ENERGY SECTOR WITH PRIVATE INVESTMENT

1. India plans to transform its nuclear energy industry by inviting private companies to invest around USD 26 billion, signifying a major change in its energy strategy.
2. Alignment with Energy Goals: India targets raising its non-fossil fuel electricity generation capacity to 50% by 2030, from the current 42%.

1. Private investment in nuclear power will significantly aid in achieving this goal, advancing the nation's transition to cleaner energy.

3. Government Negotiations: Leading companies like Reliance Industries, Tata Power, Adani Power, and Vedanta Ltd. are in talks with the government.
4. Impact and Targets: The government aims to add 11,000 megawatts (MW) of new nuclear power capacity by 2040 through this initiative.

1. It is expected to diversify India's energy sources, reduce reliance on fossil fuels, and improve long-term energy security.

5. Implementation of Investment Plan

1. Private companies will invest in nuclear plants, acquire land and water, and conduct construction.
2. However, state-run Nuclear Power Corporation of India Ltd. (NPCIL) will retain rights for building, operating, and managing nuclear stations and fuel management.
3. Private companies expect revenue from electricity sales, while NPCIL will operate the projects for a fee.

India’s Nuclear Power Sector

1. Nuclear energy is produced by splitting atoms in a reactor to heat water and generate electricity.

1. Compared to other renewables, it has advantages like smaller land use and less waste.
2. India is the only developing nation with its own indigenous nuclear reactors for electricity generation.

2. Nuclear Energy in India: India is 3^rd globally in electricity production, with nuclear power as the 5^th-largest source. India has over 22 reactors across 7 plants, producing around 6800 MW of nuclear power.

1. Current Energy Landscape: India's total installed power capacity is currently 428 GW and is projected to double to 810 GW by 2030. Nuclear power contributes about 3% to India’s overall energy mix.
2. India aims to increase nuclear power contribution from 3.2% to 5% by 2031.
3. 11 nuclear power plants are under construction, with plans to add 8,700 MW of capacity.
4. This includes a Prototype Fast Breeder Reactor (PFBR) and 4 Pressurized Water Reactors (PWRs) using Russian technology.

• A Fast Breeder Reactor (FBR) is a nuclear reactor that uses fast neutron to generate more nuclear fuels than they consume while generating power.
• A pressurized water reactor (PWR) is a type of light-water nuclear reactor that is used to generate electricity and power nuclear submarines.
• PWRs are the most common type of nuclear power reactor in the world, making up the majority of the world's nuclear power plants.
• A pressurized heavy-water reactor (PHWR) is a nuclear reactor that uses heavy water as a coolant and neutron moderator. PHWRs often use natural uranium as fuel, but may also use very low enriched uranium.

5. The government has approved the construction of 10 indigenous Pressurized Heavy Water Reactors (PHWRs) of 700 MW each, with a goal of substantial capacity expansion by 2031.

3. Nuclear Energy Resources in India: India has a small uranium but significant thorium resource. Both have specific uses in reactors, though thorium needs additional processing before use.

1. In 2022-23, India plans to import 100 tonnes of natural uranium, with existing agreements in place with Canada, Kazakhstan, Russia, and Uzbekistan for uranium purchases.

4. Nuclear Power Reactors of India: The largest indigenous 700 MWe Kakrapar Nuclear Power Plant Unit-3 in Gujarat is now fully operational.

1. India plans to build 12 new nuclear power reactors by 2024.
2. Reactors under IAEA safeguards: India's 14 nuclear reactors are under IAEA safeguards due to their use of imported fuel.

5. India's Three-stage Nuclear Power Programme: Dr. Homi Bhabha designed India's three-stage nuclear power programme in the 1950s.

1. The program aims to secure long-term energy independence using uranium and thorium reserves from South India's coastal monazite sands.
2. India is currently in the second stage of its nuclear program, aiming to utilize thorium reserves for energy production.
3. NITI Aayog suggests focusing on small modular reactors with private investment to address energy needs and replace aging thermal power plants.

6. Stage 1: Natural Uranium Fuelled Pressurized Heavy Water Reactors (PHWRs)

1. Initially, natural uranium fuelled Pressurized Heavy Water Reactors (PHWRs) were used. These reactors produced electricity and plutonium-239 as a byproduct.
2. The second stage would also use the produced plutonium-239.
3. Reasons for Selecting PHWRs:

• Use of natural uranium as fuel.
• Optimal utilization of mined uranium for energy.
• Aims for complete self-sufficiency in technology.

7. Stage 2: Fast Breeder Reactors (FBRs) Utilizing Plutonium-Based Fuel

1. The second stage involves utilizing plutonium-239 to create mixed-oxide fuel for Fast Breeder Reactors (FBRs).
2. Thorium will be used once enough plutonium-239 is available to produce uranium-233. This uranium is vital for the third stage.

8. Stage 3: Advanced Nuclear Power Systems for Utilization of Thorium

1. Stage 3 aims for a long-term nuclear fuel cycle.
2. Advanced nuclear systems would combine thorium and uranium-233.
3. Utilizing India's abundant thorium through thermal breeder reactors.
4. This stage is currently in the research phase.

9. Key Players and Regulatory Environment

1. The Department of Atomic Energy (DAE), the Nuclear Power Corporation of India (NPCIL), and the National Thermal Power Corporation (NTPC) are crucial organizations in India's nuclear energy sector.
2. All three are under the Union government's control.
3. NPCIL operates all nuclear power plants (except PFBR variants owned by The Indira Gandhi Centre for Atomic Research) and handles nuclear business in India.
4. NTPC, a major coal electricity producer with 70GW capacity, aims to incorporate nuclear reactors in its strategy to replace old coal plants.
5. The Atomic Energy Regulatory Board (AERB) supervises nuclear safety and regulations, including site selection, construction, operation, and decommissioning.
6. AERB's authority extends to nuclear applications in various sectors.

10. Nuclear Liability and Insurance: India joined the Convention on Supplementary Compensation for Nuclear Damage (CSC) in 2016, establishing a global compensation system for nuclear accidents.

1. The Civil Liability for Nuclear Damage Act (CLND), 2010, sets operator liabilities and requires insurance for potential damages.
2. The Indian Nuclear Insurance Pool (INIP), supported by General Insurance Corporation of India (GIC-Re) and other insurers, offers USD 15 billion coverage for supplier liability claims.

11. Foreign Investment and Regulation:

1. India's FDI policy prohibits foreign investment in the atomic energy sector.
2. However, there's no restriction on FDI in manufacturing nuclear equipment and parts for power plants.
3. India's Atomic Energy Act 1962 governs the nuclear energy subject, with the government playing a vital role in facility development, operation, and decommissioning.
4. A NITI Aayog panel recently recommended allowing FDI in India's atomic sector.

12. Opportunities for expansion in Nuclear Energy Sector

1. India plans to increase the share of nuclear power from 3% to 9-10% in its energy mix in long term.
2. The nuclear sector offers chances for foreign and private companies, particularly in non-nuclear parts of power plants and in construction and services.
3. Small Modular Reactors (SMRs) offer potential for cost-saving and reduced construction time, along with opportunities for technology sharing and partnerships.
4. Nuclear energy could aid in producing green hydrogen and decarbonizing the transportation sector, supporting clean power for electric vehicles and hydrogen fuel cells.
5. As old coal plants are phased out, nuclear power will be vital in meeting India's growing energy needs and fulfilling its clean energy objectives.Top of Form

13. Challenges in India's Nuclear Power Sector

1. Safety and Security Standards: India's nuclear power plants face criticism for inadequate safety and security measures during natural or human-made disasters.

• Concerns include radioactive contamination, climate impact, and leaks affecting workers' health and the environment.
• For example, the Kudankulam Nuclear Power Plant in Tamil Nadu and the Kaiga Nuclear Power Plant in Karnataka faced these issues.

2. Nuclear Waste Management: India lacks a comprehensive plan for handling and disposing of nuclear waste. Insufficient storage and transportation facilities for radioactive materials are other issues.
3. Land Acquisition: Difficulty in acquiring land for nuclear power plants causes project delays, seen in instances like Kudankulam (Tamil Nadu) and Kovvada (Andhra Pradesh).
4. Lack of Public Funding: Nuclear power receives less government support compared to fossil fuels and renewable energy sources. Limited subsidies make nuclear energy less competitive in the energy market.

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