In a significant move to overhaul the country's atomic energy landscape, the Lok Sabha on Wednesday passed a bill that paves the way for private companies to participate in the nuclear power sector. The Atomic Energy (Amendment) Bill, 2022, was approved by the lower house, marking a potential shift from the longstanding monopoly held by the government-owned Nuclear Power Corporation of India Limited (NPCIL).
What Does the Bill Change?
The core amendment lies in Section 2 of the original Atomic Energy Act of 1962. The bill expands the definition of a 'government company' under the Act. Previously, this definition was restrictive, effectively limiting nuclear power plant operations to entities like NPCIL, which is wholly owned by the central government.
The amended law now allows the central government to designate any other company as a 'government company' for the purposes of the Act, provided it holds a majority of the equity shares. This legal tweak opens the door for public sector undertakings (PSUs) and potentially private players, in collaboration with the government, to enter the field of nuclear power generation and operation.
Government's Vision for a Clean Energy Future
Piloting the bill, Union Minister of State for Science and Technology and Atomic Energy, Dr. Jitendra Singh, emphasized that the amendment is crucial for meeting India's clean energy and climate change commitments. He argued that to achieve the goal of tripling nuclear power capacity, significant investment and technological collaboration are required, which necessitates participation beyond the current government-run entity.
"The purpose of this Bill is to attract more investment in the nuclear power sector," Dr. Singh stated in the House. He clarified that the bill does not privatize nuclear power but enables public-private partnerships (PPPs) and joint ventures. The minister assured that all sensitive areas, including radioactive materials and nuclear fuel, would remain under the control of the government and the existing regulatory framework.
Addressing Concerns and Future Implications
The debate saw some opposition members raise concerns about safety, security, and the potential dilution of the public sector's role. In response, the government reiterated that the primary objective is to boost India's installed nuclear power capacity, which currently stands at just under 7,500 megawatts (MW). The broader aim is to contribute substantially to the country's non-fossil fuel energy targets.
This legislative change is expected to have several long-term implications. It could accelerate the pace of setting up new nuclear power plants, bring in advanced technology through collaborations, and help reduce the capital burden on the government exchequer. The move aligns with global trends where private players contribute to nuclear energy projects under strict regulatory oversight.
The bill's passage in the Lok Sabha is the first major parliamentary step. It will now be tabled in the Rajya Sabha for approval before it can become law. If enacted, it could mark the beginning of a new chapter for India's nuclear energy sector, fostering a more diversified and investment-friendly ecosystem to meet the nation's growing energy demands sustainably.
