"Opened Nuclear Sector To Private Firms": PM Modi's Big Energy Reliance Plan

India is opening up the private sector for nuclear energy, Prime Minister Narendra Modi said on Friday on the occasion of the 78th Independence Day. The move to allow private firms to mine, import and process uranium will end a decades-old state monopoly over the nuclear sector and bring in billions of dollars to boost the industry.

The Prime Minister noted that India has remained dependent on many countries to meet its energy needs, and for that, the country is now focusing on nuclear energy.

"But to build a truly self-reliant India, we must achieve energy independence. In the last 11 years, our solar energy capacity has increased by 30 times. We are constructing new dams, and India is now focusing actively on nuclear energy," he said.

"We have taken significant steps in this direction, with 10 new nuclear reactors currently operational. By the time India celebrates 100 years of independence, we aim to increase our nuclear energy capacity tenfold," he added.

The Prime Minister said India is taking big initiatives in the nuclear energy sector with the aim of expanding the country's nuclear power production capacity by 12 times by 2047.

"Reform is a continuous process... We have brought huge reforms to the field of nuclear energy. We have opened the doors for the private sector in nuclear energy. We want to combine our strengths," he said.

India's Move To Allow Private Firms To Mine, Import Uranium

The Prime Minister Modi-led government is planning on relaxing requirements to allow foreign players to take a minority stake in power plants, Reuters reported in April, according to a report by news agency Reuters.

If the expansion goals are met, nuclear will provide 5 per cent 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, the two government sources told Reuters.

The proposed policy will also permit private players to supply critical control system equipment for nuclear power plants, they said.

India's 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, per the Reuters report, domestic resources would only be able to meet about 25 per cent 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.

New Delhi will have to change five laws, including the ones regulating the mining and electricity sectors and India's foreign direct investment policy, to enable private participation in many identified activities, the sources said.