India Set to Ease Nuclear Laws to Draw Private Capital

(Bloomberg) -- India’s government will amend its nuclear laws to draw private capital and boost the sector’s growth, counting on atomic energy to help the country wean itself off fossil fuels, Finance Minister Nirmala Sitharaman said.

The government will amend its civil nuclear liability law, which has deterred foreign technology suppliers from building projects in the country. The existing law holds both plant operators and equipment suppliers liable for damages in case of an incident, making companies reluctant to sign deals with India.

The minister also proposed a change in regulation to allow private businesses to enter the nuclear power generation segment. It was previously in the hands of state monopoly Nuclear Power Corp. Of India Ltd. 

Sitharaman added that the government will allocate 200 billion rupees ($2.3 billion) for research and development of small and modular reactors. 

To deploy nuclear power at scale, issues such as technology, fuel, safety, liabilities and costs will need to be addressed, according to Anish De, Global Head of Energy, Natural Resources and Chemicals with KPMG. “Setting a clear north star on the development of nuclear power provides directional clarity on issues,” he said.

With nations at work to reach net zero, nuclear is gaining increasing acceptance across the world as a low-carbon substitute for fossil fuels. Developing 100 gigawatts of nuclear power capacity by 2047 — a more than ten-fold jump from now — may significantly boost India’s energy transition efforts.

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