Atomic energy body OKs nuclear power FDI policy, consultation next (SHANTI ACT PUSH), Pg4

Key Highlights:

• The Atomic Energy Commission has approved a new FDI policy to encourage private participation in India's nuclear power sector.
• This policy change is linked to the proposed SHANTI Act, which aims to dilute the liability clause for nuclear operators.
• India aims to achieve 100 GW of nuclear power capacity by 2047, requiring an estimated investment of Rs 20 lakh crore.
• The focus is now on indigenizing Light Water Reactor (LWR) technology to enhance domestic capabilities and potential exports.

Detailed Insights:

• The dilution of the liability clause under the SHANTI Act is expected to make the nuclear sector more attractive to foreign investors.
• Achieving the 100 GW target requires innovative financing measures to attract the necessary investment of approximately Rs 22 crore per MW.
• While India has expertise in Pressurised Heavy Water Reactor (PHWR) and Fast Breeder Reactor (FBR) technologies, LWR technology is crucial for future growth.
• Nuclear power is considered a viable alternative to coal for baseload generation, but concerns remain about the high tariffs associated with new nuclear plants.

Key Concepts Involved:

• FDI (Foreign Direct Investment): Investment made by a firm or individual in one country into business interests located in another country.
• Liability Clause: A contractual clause that specifies who is responsible for damages or losses in the event of an accident or incident.
• Baseload Generation: The minimum amount of electric power delivered or required over a given period of time.