India plans to strategically liberalize its nuclear sector by allowing private firms to engage in the uranium value chain, which includes mining, importing, and processing. This policy shift is designed to dismantle the decades-old state monopoly, with the key objective of attracting billions of dollars in private capital to accelerate industry expansion.
The government plans to expand nuclear power production capacity by 12 times by 2047, and it is also relaxing requirements to allow foreign players to take a minority stake in power plants. If it meets its expansion goal, nuclear will provide 5% of India’s total power needs, according to government estimates.
Until now, the state has maintained control over the mining, import and processing of uranium fuel because of concerns over the possible misuse of nuclear material, radiation safety, and strategic security.
It will retain its grip on reprocessing spent uranium fuel and managing plutonium waste, in line with global practice.
But to help meet a surge in demand for nuclear fuel as it expands nuclear power production, the government plans to draw up a regulatory framework that would allow private Indian firms to mine, import and process uranium, reports the news agency Reuters, quoting two government sources.
The proposed policy, was likely to be made public in the current fiscal year, will also permit private players to supply critical control system equipment for nuclear power plants, they said.
Outside India, countries including Canada, South Africa and the United States allow private firms to mine and process uranium.
Domestic Supply
India has an estimated 76,000 tonnes of uranium enough to fuel 10,000 megawatts of nuclear power for 30 years, according to government data.
But the domestic resources would only be able to meet about 25% of the projected increase. The rest would have to be imported and India would need to increase its processing capacity.
In announcing its budget on February 1, the government made public its plans to open up the sector without giving details.
Some of India’s big conglomerates subsequently began drawing up investment plans.
But analysts said amending the legislation could be complex.
the five laws, including the ones regulating mining and electricity sectors and India’s foreign direct investment policy to enable private participation in many identified activities, will have to be changed.
