The Power sector reforms in the country have presented the next strategic challenge that could redefine global interest in India. The country has set an ambitious target of producing 20,000 MW of Nuclear power by 2020 i.e. around 1000 MW of additional nuclear capacity per year for the next 17 years. The GoI with a view to achieve this ambitious target is reportedly contemplating amendments to the Atomic Energy Act of 1962.Achieving this desired potential, however, is going to be a mammoth exercise that is likely to present conflicting policy options for the country. <br /> <br /> India currently with an installed nuclear generation capacity of 2720 MW is perhaps the only developing country in the world to have an entirely indigenous atomic energy programme. The Nuclear Power Corporation of India Limited (NPCIL) is the only government agency currently allowed to undertake construction and operation of nuclear generating facilities in the country, under the overall supervision of the Department of Atomic Energy (DoAE). The NPCIL's entire generating capacity of 2720 MW is constituted of 14 units, between 100-220 MW, spread across the country at 6 locations. In addition, 81 reactors under construction at 4 locations are likely to add another 3,960MW of generating capacity by 2008.However, given the NPCIL's track record of meeting deadlines the proposed units are not likely to materialize in the projected time frame. The amendments to the Atomic Energy Act of 1962 are, thus, proposed to infuse much needed private resources, financial and technological, in the nation's atomic energy sector. <br /> <br /> Private sector involvement in nuclear generation, including foreign participation, however, is likely to be beset with hurdles. For one, despite having an indigenously developed nuclear programme, India is outside the purview of all major global nuclear technology governing regime including the Non Proliferation Treaty (NPT) and is not recognised as a Nuclear power. More importantly, its exclusion from the 44 nation Nuclear Suppliers Group (NSG) means that foreign participation will not be possible even for equipment supply let alone financial and technology transfer models. This coupled with country specific guidelines preventing domestic companies from having any nuclear dealings with non -NSG states, ex India, almost entirely eliminates the possibility of foreign private participation for nuclear generation in India. <br /> <br /> The NPCIL's nuclear units, on the other hand, are primarily based on the CANDU type of reactors of Canadian origin. Despite substantial improvements the reactor design has aged over the years and is not considered a viable option for future generating capacity. <br /> Questions have been raised on NPCIL's return to reported profits on account of 'adjusted' fuel and heavy water price and the transfer of risk insurance and waste disposal liabilities on the GoI. With the 2nd stage of 500 MW heavy water plants yet to be operational, the options for investments by Indian corporate in nuclear generation will have to remain limited to the 220 MW CANDU units-a no choice in the emerging competitive electricity market framework in the country! <br /> <br /> Thus, Amendments to the Atomic Energy Act of 1962 are not likely to inject private capital flow into nuclear generation in the country. India has so far resisted signing the NPT or subjecting all of its nuclear facilities to International Atomic Energy Agency (IAEA) safeguards. Despite being a non-signatory to major non-proliferation regimes India's record on the same remains impeccable. The indigenous nuclear programme also, in spite of international technology denials, has continued to flourish albeit at a slower rate. With the GoI reportedly attracting private, including foreign, participation it might just be the opportunity for the international community to co-opt India in the civilian nuclear technology regime on mutually acceptable international safeguards. The differences over NPT notwithstanding, accommodating India in a modified NSG regime could be the first step for a comprehensive addressing of global nuclear issues. <br /> <br /> <em>* Views expressed in this article are those of the author and do not necessarily reflect those of Observer Research Foundation.</em>
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