The Hindu Business Line : ‘Nuke deal has come at the most opportune time’

Chennai, Oct. 11 The Indo-US nuclear deal is the only way to increase the share of nuclear power in the total electricity generation in the country, says Dr R. Kalidas, former Chief Executive of NFC (Nuclear Fuel Complex), Hyderabad.

“I also strongly feel the deal will be good for many companies in the country. Once the gates for nuclear trade open, many foreign companies will come in with their merchandise,” he adds, in a recent e-mail interaction with Business Line.

“This will increase competition for Indian firms. Even NFC, the only manufacturing unit in India for nuclear fuel and many hardware items, may not be spared from competition.”

Dr Kalidas is of the view that NPCIL (Nuclear Power Corporation of India Ltd), the public sector undertaking that spearheads India’s nuclear power programme, may then look for other suppliers.

“Many public and private enterprises want to set up nuclear power plants. NFC will not be able to remain the sole supplier in that scenario. Competition will force firms to improve. Product quality and operational competence will increase,” he foresees.

NFC, established in 1971, is “a major industrial unit of DAE (Department of Atomic Energy), Government of India. The complex is responsible for the supply of nuclear fuel bundles and reactor core components for all the nuclear power reactors operating in India,” informs www.nfc.gov.in.

“It is a unique facility where natural and enriched uranium fuel, zirconium alloy cladding and reactor core components are manufactured under one roof starting from the raw materials.”

Writing about the deal, in a paper posted on www.ssrn.com, Dr Kalidas had observed how the DAE’s three-stage nuclear power programme of progressive utilisation of uranium, the plutonium generated from spent fuel and finally the abundantly available thorium is progressing, but slowly. “For it to succeed, considerable quantity of uranium is required, which has to be imported. The Indo-US deal assumes importance in this context.”

Excerpts from the interview:

On the energy argument

There is a growing need for energy in the country. It is necessary to exploit and utilise all forms of energy and every gram of available natural resource. Nuclear power is no exception. Nuclear power is clean. Environmental concerns about it arise more out of fear of unknown.

On the need for external inputs

With the limited available uranium resources in the country, the share of power generation through nuclear means will remain very low. Without external inputs it will remain so for decades to come. With limitations in the availability of other resources and environmental concerns, the total generation in the country will remain low.

When large-scale thorium utilisation commences, we can become self sufficient with respect to nuclear fuel. But it is a long, long way to go. In the interim period there is no alternative to depend on external inputs. This is the most opportune time for us to take external help.

On reactor import

NPCIL is capable of constructing more indigenous reactors. But uranium available is grossly inadequate. Fuel has to be imported either as uranium or in the finished form. If the international restrictions for nuclear trade are removed, reactors can also be imported with lifetime fuel supply guarantee. This mode will help to quickly increase the power generation.

On rights that must be retained

In both the cases we should have the right to reprocess the spent fuel to extract precious plutonium, which is essential to continue with our three stage nuclear programme for exploiting the full potential of vast thorium resources the country is endowed with.

Nothing comes free. We have to take care that the price we pay for the nuclear deal should not consist of compromises in our freedom to have an independent foreign policy, independence in our scientific pursuits, notably three stage nuclear programme and, of course, the defence requirements.

On US’ expectations

Hoping that US does not expect anything in return from us will be naïve. The entire country, irrespective of the party lines, should think how to have the cake and eat it too. In any case, fear of consequences of US or any other country imposing restrictions in future because of any of our actions is unnecessary. Restrictions are there right now any way.

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