The Hindu Business Line : Private sector in nuclear power

WITH AN INSTALLED capacity of 2,770 megawatts (MW), nuclear power in India accounts for just about 3 per cent of the total installed power generating capacity. That is evidently small, but it pales into insignificance when compared to what prevails in some of the developed economies. In France, for instance, nuclear power accounts for as much as 80 per cent of total power generated while it is 20 per cent in the US. In India, nuclear power generation has been solely under the control of the Nuclear Power Corporation of India Ltd, a Government undertaking.

The Corporation itself has had to battle against the odds to set up nuclear power plants — fears over safety, access to technology in the backdrop of western nations blocking transfer of technology, questions over the ready availability of fuel and, most important, funds. The pace of expansion has therefore been painfully slow. However, over the years, the Nuclear Power Corporation (NPC) has managed to overcome most of these problems and has increased installed capacity in a phased manner. It has successfully reduced the time taken to put up plants. The Corporation now has an ambitious expansion programme — the Tenth Plan target of 1,300 MW has been increased to 2,520 MW. The aim is to have an installed capacity of 20,000 MW by 2020. It plans to add 6,000-8,000 MW by collaborating with countries that are friendly towards India in the nuclear field. For instance, the Koodankulam plant in Tamil Nadu is being built with Russian help.

It is in this context that the proposal to involve the private sector in nuclear power generation has to be viewed. Still in the initial stages and talked about for some time, the move has to be welcomed as it will give an impetus to the nuclear power programme. Companies such as Larsen & Toubro and Reliance have shown interest in participating in the nuclear power programme and it is only regulations that prevented them from doing so. The Atomic Energy Act, which controls nuclear activities in the country, needs to be amended to permit the private sector to generate nuclear power — a proposal that is now to be discussed by the Cabinet.

Adequate measures must be built into the Act to allay whatever fears may exist over the private sector's involvement in this field, especially since nuclear power generation in the country still bristles with issues relating to the use of nuclear material, its reprocessing and safety of operations. It is for the Government to convince all concerned that these issues will be well-handled and that there will be no safety or security risk in involving the private sector. Having said that, one needs to have no doubts that co-opting the private sector will not only speed up the capacity addition programme but also bring in much needed funds for the sector's growth. Importantly, it will also help bridge the growing gap between electricity supply and demand.

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