India's Atomic Energy Reforms
The Government of India's recent moves to rejuvenate the Indo-US nuclear deal, particularly focusing on foreign and private collaboration in atomic power expansion, signal a positive shift. However, this initiative casts a spotlight on India's closely guarded atomic energy establishment, necessitating fundamental reforms in the Department of Atomic Energy (DAE).
Management of the Nuclear Fuel Cycle
- The entire nuclear fuel cycle, from mining to waste management, is currently under DAE's strict control.
- The proposed reform suggests separating the power production stage to allow private sector involvement while maintaining DAE control over fissionable material at entry and exit points of reactors.
- This would require significant amendments to the Atomic Energy Act and a new regulatory framework beyond the current Atomic Energy Regulatory Board (AERB).
Challenges with the Civil Liability for Nuclear Damage Act (CLNDA)
- The CLNDA, particularly Article 17(B), has deterred foreign collaboration by holding suppliers liable, contrary to global norms where operators bear liability.
- Efforts to mitigate this through a risk management proposal and insurance products have not fully convinced potential foreign investors.
- To encourage foreign investment, the government may need to amend the Act to remove the operator's right to recourse to suppliers.
Impact and Future Prospects
- Despite increased power production by 3,400 MW in the last decade, nuclear energy contributes only around 2% to India's energy mix.
- Reforming the atomic energy sector could significantly enhance its role in India's energy landscape, though it will test political resolve.
