A government committee has suggested opening up the nuclear power sector for up to 49 per cent foreign investment, amendments to the civil liability Act to shield operators from any other law on civil liability and include the liability cap for equipment suppliers in their contracts with plant operators.
These are among a slew of proposals made by the inter-ministerial committee, which is mandated to draw up the roadmap to meet the country’s target of having 100 MW nuclear power capacity by 2047. ET has seen its report.
The committee recommended that the government allow foreign players in the sector and recommended a host of changes to the existing framework. India does not allow foreign investment in the sector at present. It made a case for revamping provisions related to liability, including rewording a section doing away with civil liability under any law other than the Civil Liability for Nuclear Damage Act.
It also suggested that liability be capped and reflected in the contract between the equipment supplier and the operator of a nuclear power plant. Clarity on liability has been a major demand from global nuclear equipment suppliers to participate in India contracts.
The government is in the process of working on changes in the Atomic Energy Act and the Civil Liability for Nuclear Damages Act to allow private sector participation in N-energy generation.
The committee, co-chaired by atomic energy department joint secretary PS Karthigeyan and Central Electricity Authority member Ajay Talegaonkar, also includes officials from the Department of Atomic Energy, Nuclear Power Corporation of India, the power ministry, NTPC and the Bhabha Atomic Research Centre.
It has stressed on the need to re-design the insurance policy offered by the Indian Nuclear Insurance Pool (INIP) managed by the General Insurance Corporation of India, so that operators can be insured for ₹1,500 crore for each incident, instead of the current floater policy. This will require augmentation of INIP’s capacity.
The nuclear energy target of 100 GW comprises 46.5 GW from indigenous pressurised heavy water reactors, 38.8 GW from pressurised water reactors and 5 GW each from Bharat Small Modular Reactors, Bharat Small Reactors and Fast Breeder Reactors, according to the report. Further recommendations include allowing activities relating to handling of nuclear fuel, controlled by the government through licensing.
Distance tariff regulation from the government in case of private sector participation and provisions for making appeal and tariff discovery through bidding also need consideration, the report said.
Funding requirement
India will require nearly ₹20 lakh crore for achieving 100 GW of nuclear power capacity by 2047, as per the anticipated technology mix prepared by the committee. The requirement is in addition to the 8.8 GW already installed in the country.
The committee has recommended a 70:30 debt-equity ratio for the capital required and interest subvention to facilitate private companies setting up plants.
On tariff, it pointed out that the current cost of PHW₹is around ₹15-16 crore per MW, which translates to a levelised tariff of around ₹6 a unit.
If there is indigenisation with substantial equipment manufacturing in India, the capital cost of PW₹could be around ₹22-25 crore/MW, translating to around ₹6.00-6.60/unit (not considering water and insurance charges). The tariff for new thermal power stations is estimated to come around ₹5.50-6.00/unit, as per the committee.
