Private sector gets a foot in India’s civil nuclear power sector

NEW DELHI, India: After two days of heated debates in India's Parliament, lawmakers approved by a voice vote on December 18, new legislation to open the tightly controlled civil nuclear power sector to private companies.

The government said the move would accelerate clean energy expansion, while opposition political parties argued that it would dilute safety and liability safeguards.

The Rajya Sabha (upper house), made up of the country's elders, passed the bill on December 18 after the Lok Sabha (lower house) approved the legislation a day earlier. The country's president now has to sign the bill for it to become law, but that appears to be a foregone conclusion.

The move is significant as India looks to become a major player in the next wave of nuclear energy, including small modular reactors. It comes at a time when numerous nations are turning to nuclear power to meet climate targets and reduce dependence on fossil fuels.

The debate in both houses was hotly argued, with the ruling benches claiming that the legislation marks a clean break from decades of state dominance in nuclear energy. Critics, however, said it was a risky proposition with long-term consequences linked to radiation. They cited the catastrophic accidents at Chernobyl in Russia, Three Mile Island in the United States, and Fukushima in Japan as evidence.

"It marks a momentous milestone for India and signals to capable private-sector players that the country is open for business in the nuclear energy space," said Karthik Ganesan, director of strategic partnerships at the Council on Energy, Environment and Water, a think tank.

Jitendra Singh, the minister who oversees the Department of Atomic Energy, told lawmakers that the bill—dubbed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India, or SHANTI (the Hindi equivalent of "peace")—seeks to modernize India's nuclear framework in line with technological, economic, and energy realities. He said it also retains and strengthens core safety, security, and regulatory safeguards.

"India's role in geopolitics is increasing. And if we are to be an effective global player, we have to live up to international benchmarks, follow global parameters, and adopt global strategies," Singh said in the Lok Sabha. The bill was necessary to address the country's growing energy needs, he added.

India is seeking to expand nuclear power and has pledged more than US$2 billion in recent months for research and related activities. Nuclear energy generates electricity without emitting planet-warming gases, though it does produce radioactive waste.

Despite this push, more than 75 percent of India's electricity is still generated from fossil fuels, mainly coal. The government aims to install 100 gigawatts of nuclear capacity by 2047—enough to supply power to nearly 60 million Indian homes annually.

Energy experts say nuclear power will be essential if the world is to move away from carbon-polluting fuels such as coal, oil, and gas. However, some remain skeptical of India's ambitions, noting that the country's nuclear sector is still small and that negative public perceptions of the industry persist.

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