Deepak Dwivedi
INDIA’S nuclear power industry is about to undergo a radical change as the Nuclear Power Corporation of India Limited (NPCIL) made a bold and historic move by issuing a Request for Proposal (RFP) to invite private players into the development of small reactors and to get a skin in the upcoming nuclear projects, marking a watershed moment in India’s approach to the nuclear sector. The NPCIL can assist these industry pioneers by sharing expertise and technology with regulatory permissions. This collaboration will help increase efficiency, cost reduction, and innovation in the design, construction, and management of nuclear facilities. In return, the industries will benefit from the net electricity output for their captive use or resale, subject to the Department of Atomic Energy’s tariff regulations.
This is a momentous step for the industry because of the dual implications of the use cases. The atomic energy portfolio has always been given special attention at the South Block and other national political corridors and protected from private participants. The private entities have always been forestalled from entering the nuclear sector, primarily due to stringent regulatory frameworks established under the Atomic Energy Act of 1962, which grants exclusive control over nuclear energy activities to the Central Government. It is executed through federal entities like the DAE and NPCIL. This effectively prohibits private companies from engaging in core activities related to nuclear power generation and restricts private companies from producing or utilising atomic energy.
Changes have occurred in recent years. The joint venture between the National Thermal Power Corporation and the NPCIL was the first time an entity other than the NPCIL entered the nuclear portfolio. This can be seen as the first step towards the privatisation in the sector. India’s commitment to safety and sustainability is highlighted by the development of Bharat Small Reactors, indigenous small modular reactors. The Government recognised the need to address the SMR market to attract private investments and boost atomic energy production. BSRs can play a key role in economic and infrastructural projects like SEZs, smart cities, and industries with heavy energy requirements, but the financial commitment to revamping nuclear infrastructure to include BSRs is immense, often beyond the capacity of governments alone.
Encouraging private investment through request for proposal (RFP) not only alleviates this burden but also brings in the taste of diverse capitalistic flavours of making returns and addresses three critical pillars of India’s energy strategy – sustainability, energy security, and industrial competitiveness. The RFP highlights a four-step project approach, beginning with pre-project evaluation, which includes site studies and clearances of the minimum land area of 331 hectares for twin units which would then be sub-leased to NPCIL for a long-term lease, followed by the construction phase under NPCIL supervision. After the plant is ready, all project assets are transferred to NPCIL for possession, control, and operation at a nominal value.
During the entire process, the user has to adhere to the Atomic Energy Regulatory Board (AERB) guidelines for siting, construction, operation, and decommissioning. The public-private partnership in the nuclear sector is set to catalyse the industry with the NPCIL collaboration, which can significantly benefit various sectors with high energy demands by providing a reliable, clean, and cost-stable source of energy, ensuring long-term sustainability goals.
