NEW DELHI: India has proposed a strict approval system for private nuclear power projects, creating a path for foreign companies with proven reactor technology to enter one of the country’s most tightly controlled industries.
The draft rules, issued for public consultation, show how New Delhi plans to attract private and international investment while keeping firm control over licensing, safety and strategic nuclear materials.
Under the proposed system, companies could receive approval in principle to select technology suppliers, carry out early development work and secure land before receiving a final operating licence, according to The Express Tribune. However, each project would then face detailed regulatory checks covering its design, location, construction, testing and operation. Regulators would also have the authority to stop work at important stages if safety requirements were not met.
India’s nuclear industry has remained largely under state control for decades. Foreign fuel and technology faced serious restrictions after the country’s first nuclear test in 1974 led to international sanctions and limits on nuclear cooperation.
Last year, India amended its nuclear energy law to allow private companies to build and operate nuclear power projects. The government, however, retained control over licensing and sensitive nuclear materials.
India, the world’s third-largest greenhouse-gas emitter, plans to increase its nuclear capacity twelvefold to 100 gigawatts over the next 20 years. Officials believe private investment and foreign expertise will be essential to achieving that ambitious target.
Domestic business groups, including Adani Green, Tata Power and Reliance Industries, have reportedly been invited to invest in the sector. Changes to the law also placed a cap on the liability of nuclear equipment suppliers in the event of an accident, addressing a major concern among foreign companies.
The draft rules would permit reactor designs with successful operating records abroad. Developers would need to provide evidence of licensing and operational experience in the countries where the technology has already been used.
They would also be required to set aside funds for accident liability, plant decommissioning and radioactive-waste management.
