(Oil Price) – India’s government on Friday approved the landmark Atomic Energy Bill, which would allow private companies to invest in its nuclear energy industry for the first time, as the country looks to boost its nuclear power capacity tenfold within two decades.
The so-called SHANTI (Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India) bill passed the federal government approval on Friday. Later this month, the bill is expected to be submitted to Parliament for discussion and vote in the winter session.
The landmark legislation, if adopted by Parliament, could drive huge investments from private companies in India’s nuclear energy sector.
Earlier this year, a panel set up by India’s power ministry said in a report that India’s goal to boost its installed nuclear power capacity to 100 gigawatts (GW) by 2047, up from just 8.8 GW now, would require as much as 19.28 trillion Indian rupees, or $214 billion at current exchange rates, of cumulative capital.
“With the country’s proven research, engineering and execution capabilities, the goal is achievable,” the panel said but noted several challenges, top of which was the current lack of private capital participation.
The Atomic Energy Act, 1962 currently does not allow participation of private sector or even state governments.
“Substantial technical and financial resources will be required for accelerated deployment of 100 GW of nuclear capacity by 2047,” the panel said.
“The private sector has abundant capital, and inherent efficiency in timely construction and innovation adaption.”
India has been considering various steps to open the sector to private firms.
The government is considering allowing foreign companies to own up to a 49% stake in Indian nuclear power plants.
India’s government could also accelerate the construction of nuclear power plants by attracting foreign firms if it changes the liability laws. India plans to remove an unlimited liability clause in its nuclear energy laws in a bid to attract foreign firms to the sector.
By Charles Kennedy for Oilprice.com
